Manage financial risk

Predict and manage financial risks, and identify procedures to avoid or minimise their impact.

employ financial risk management
minimise the impact of financial risks
regulate financial risk
carry out financial risk management
mitigate financial risk
control financial risk
practice financial risk management
manage financial risk exposure
minimise financial risks
manage financial risks

skill/competence

cross-sector

Manage financial risk is an essential skill of the following occupations:

Electronic and telecommunications equipment and parts distribution manager: Electronic and telecommunications equipment and parts distribution managers plan the distribution of electronic and telecommunications equipment and parts to various points of sales.
Foreign exchange trader: Foreign exchange traders buy and sell foreign currencies in order to secure a profit on fluctuations in foreign exchange rates. They undertake technical analysis of economic information (market liquidity and volatility ) to predict the future rates of currencies on the foreign exchange market. They trade on their own name or for their employers.
Textile industry machinery distribution manager: Textile industry machinery distribution managers plan the distribution of textile industry machinery to various points of sales.
Energy trader: Energy traders sell or buy shares of energy, sometimes from different sources. They analyse the energy market and investigate trends in prices to decide when to buy or sell shares and ensure the most profit. They make calculations, and write reports on energy trades procedures, and make predictions on the development of the market.
Flowers and plants distribution manager: Flowers and plants distribution managers plan the distribution of flowers and plants to various points of sales.
Computers, computer peripheral equipment and software distribution manager: Computers, computer peripheral equipment and software distribution managers plan the distribution of computers, computer peripheral equipment and software to various points of sales.
Pharmaceutical goods distribution manager: Pharmaceutical goods distribution managers plan the distribution of pharmaceutical gooods to various points of sales.
Live animals distribution manager: Live animals distribution managers plan the distribution of live animals to various points of sales.
Fish, crustaceans and molluscs distribution manager: Fish, crustaceans and molluscs distribution managers plan the distribution of fish, crustaceans and molluscs to various points of sales.
Credit manager: Credit managers oversee the application of credit policy in the bank. They decide the credit limits to be imposed, the reasonable levels of risk accepted and the conditions and terms of payment made to the customers. They control the collection of payments from their customers and manage the credit department of a bank.
China and glassware distribution manager: China and glassware distribution managers plan the distribution of china and glassware to various points of sales.
Agricultural raw materials, seeds and animal feeds distribution manager: Agricultural raw materials, seeds and animal feeds distribution managers plan the distribution of agricultural raw materials, seeds and animal feeds to various points of sales.
Credit union manager: Credit union managers oversee and manage member services, supervise staff and operations of credit unions. They inform staff about the latest credit union procedures and policies and prepare financial reports.
Wood and construction materials distribution manager: Wood and construction materials distribution managers plan the distribution of wood and construction materials to various points of sales.
Airline transport pilot: Airline transport pilots fly large aircrafts with a maximum take-off weight of more than 5700 kilograms, to transport passengers, mail, or freight on long or short-haul flights for leisure, business or commercial purposes. They have the overall responsibility for the safe and efficient operation of aircrafts and the safety of crew and passengers.
Metals and metal ores distribution manager: Metals and metal ores distribution managers plan the distribution of metals and metal ores to various points of sales.
Textiles, textile semi-finished and raw materials distribution manager: Textiles, textile semi-finished and raw materials distribution managers plan the distribution of goods to various points of sales.
Tobacco products distribution manager: Tobacco products distribution managers plan the distribution of tobacco products to various points of sales.
Clothing and footwear distribution manager: Clothing and footwear distribution managers plan the distribution of clothing and footwear to various points of sales.
Distribution manager: Distribution managers plan the distribution of goods to various points of sales.
Watches and jewellery distribution manager: Watches and jewellery distribution managers plan the distribution of watches and jewellery to various points of sales.Watches and jewellery distribution managers plan the distribution of watches and jewellery to various points of sales.
Specialised goods distribution manager: Specialised goods distribution managers plan, coordinate and manage the distribution of specialised goods to various points of sales. They oversee employees and ensure that operations run efficiently such as the storage, transportation and delivery of specialised goods.
Insurance product manager: Insurance product managers set and direct the development of new insurance products, following the product lifecycle policy and the general insurance strategy. They also coordinate the marketing and sales activities related to the specific insurance products of the company. Insurance product managers inform their sales managers (or the sales department) about their newly developed insurance products.
Fruit and vegetables distribution manager: Fruit and vegetables distribution managers plan the distribution of fruit and vegetables to various points of sales.
Licensing manager: Licensing managers oversee licenses and rights of a company regarding use of its products or intellectual property. They ensure that third parties comply with specified agreements and contracts, and negotiate with and maintain relationships between both parties.
Financial risk analyst: Financial risk analysts correctly identify and review potential risk areas threatening the assets or capital of organisations. They specialise in either credit, market, operational or regulatory risk analysis. They use statistical analysis to evaluate risk, make recommendations to reduce and control risk and review documentation for legal compliance.
Hides, skins and leather products distribution manager: Hides, skins and leather products distribution managers plan the distribution of hides, skins and leather products to various points of sales.
Chemical products distribution manager: Chemical products distribution managers plan the distribution of chemical products to various points of sales.
Machinery, industrial equipment, ships and aircraft distribution manager: Machinery, industrial equipment, ships and aircraft distribution managers plan the distribution of machinery, industrial equipment, ships and aircraft to various points of sales.
Waste and scrap distribution manager: Waste and scrap distribution managers plan the distribution of goods to various points of sales.
Household goods distribution manager: Household goods distribution managers plan the distribution of household goods to various points of sales.
Mining, construction and civil engineering machinery distribution manager: Mining, construction and civil engineering machinery distribution managers plan the distribution of mining, construction and civil engineering machinery to various points of sales.
Credit risk analyst: Credit risk analysts manage individual credit risk and care for fraud prevention, business deal analysis, legal documents analysis and recommendations on the level of the risk.
Perfume and cosmetics distribution manager: Perfume and cosmetics distribution managers plan the distribution of perfume and cosmetics to various points of sales.
Investment fund manager: Investment fund managers implement and monitor the investment strategy of a fund. They manage the fund’s portfolio trading activities and supervise the financial, securities, and investment analysts in charge to perform research on the investments and then make buying and selling recommendations. They make decisions on when to buy or sell the assets included in a portfolio. This manager works in a variety of settings such as banks, companies and stockbroking companies; working closely with the investment analyst. This occupation manages strategy and does not always work with relations between shareholders or investors.
Furniture, carpets and lighting equipment distribution manager: Furniture, carpets and lighting equiment distribution managers plan the distribution of furniture, carpets and lighting equiment to various points of sales.
Retail entrepreneur: Retail entrepreneurs organise business processes and concepts in his/her personally owned business.
Financial broker: Financial brokers undertake financial market activities on behalf of their clients. They monitor securities, financial documentation of their clients, market trends and conditions and other legal requirements. They plan buying and selling activities and calculate transactions costs.
Dairy products and edible oils distribution manager: Dairy products and edible oils distribution managers plan the distribution of dairy products and edible oils to various points of sales.
Hardware, plumbing and heating equipment and supplies distribution manager: Hardware, plumbing and heating equipment and supplies distribution managers plan the distribution of hardware, plumbing and heating equipment and supplies to various points of sales.
Electrical household appliances distribution manager: Electrical household appliances distribution managers plan the distribution of electrical household appliances to various points of sales.
Rental manager: Rental managers supervise the activities of a rental office or station and its staff.
Beverages distribution manager: Beverages distribution managers plan the distribution of beverages to various points of sales.
Agricultural machinery and equipment distribution manager: Agricultural machinery and equipment distribution managers plan the distribution of agricultural machinery and equipment to various points of sales.
Asset manager: Asset managers invest the money of a client into financial assets, through vehicles such as investment funds or management of individual clients’ portfolios. This includes the management of the financial assets, within a given investment policy and risk framework, the provision of information, the assessment and monitoring of risks.
Sugar, chocolate and sugar confectionery distribution manager: Sugar, chocolate and sugar confectionery distribution managers plan the distribution of sugar, chocolate and sugar confectionery to various points of sales.
Insurance underwriter: Insurance underwriters assess business risks and liability policies and make decisions about commercial property. They inspect the conditions of businesses’ properties, analyse inspection policies, assist with real estate and rent issues, prepare loan contracts and handle commercial risks in order to align them with business practices. Insurance underwriters analyse various information from prospective customers in order to assess the likelihood that they will report a claim. They work to minimise risk for the insurance company and make sure that the insurance premium aligns with the associated risks. They can be specialists in life insurance, health insurance, reinsurance, commercial insurance, mortgage insurance.
Meat and meat products distribution manager: Meat and meat products distribution managers plan the distribution of meat and meat products to various points of sales.
Coffee, tea, cocoa and spices distribution manager: Coffee, tea, cocoa and spices distribution managers plan the distribution of coffee, tea, cocoa and spices to various points of sales.

Manage financial risk is optional for these occupations. This means knowing this skill may be an asset for career advancement if you are in one of these occupations.

Mergers and acquisitions analyst: Mergers and acquisitions analysts oversee the execution of transactions for the purchase, sale, merger or takeover of companies. They negotiate and complete the deal on the client’s behalf, by working closely with lawyers and accountants. Mergers and acquisitions analysts conduct operational and legal risk assessments of a company, assess comparable companies in the market and help with the post-merger integration.
Financial planner: Financial planners assist people dealing with various personal financial issues. They are specialised in financial planning, such as retirement planning, investment planning, risk management and insurance planning, and tax planning. They advise a strategy tailored to the client’s needs. They ensure the accuracy of bank and other financial records while maintaining a customer-orientated approach and following ethical standards.
Middle office analyst:
Middle office analysts work in the treasury of a financial company, ensuring compliance with company policy and legal legislation, providing research and analysis on financial matters, measuring risk and supporting operations in the front office.
Financial manager: Financial managers handle all the matters in reference to the finance and investments of a company. They manage financial operations of companies such as the assets, liabilities, equity and cash flow aiming to maintain the financial health of the company and operative viability. Financial managers evaluate the strategic plans of the company in financial terms, maintain transparent financial operations for taxation and auditing bodies, and create the financial statements of the company at the end of the fiscal year.
Business manager: Business managers are responsible for setting the objectives of the business unit of a company, creating a plan for the operations, and facilitating the achievement of the objectives and implementation of the plan together with employees of the segment and stakeholders. They keep an overview of the business, understand detailed information of the business unit and support the department, and make decisions based on the information at hand.
Insurance agency manager: Insurance agency managers coordinate and oversee the operations of an institution or a branch of an institution that offers insurance services. They provide clients with advice on insurance products.
Financial trader: Financial traders buy and sell financial products such as assets, shares and bonds for private clients, banks or companies. They monitor the financial markets closely and aim to maximise profit and to minimise risk through their transactions.
Pensions administrator: Pensions administrators perform administrative duties in the management of pension schemes, ensuring the correct calculation of client’s pension benefits, compliance with legal requirements, drafting reports and communicating relevant information to customers. They work either in the private or the public sector.
Bank manager: Bank managers oversee the management of one or several bank activities. They set policies which promote safe banking operations, ensure the economic, social and commercial targets are met and that all the bank departments, activities and commercial policies are in compliance with legal requirements. They also manage employees and maintain an effective working relationship among the staff.
Public finance accountant: Public finance accountants head the treasury department of a governmental institution. They manage the institution’s financial administration, expenditure and income generation, and compliance with taxation and other financial legislation. They perform administrative duties to ensure record keeping, develop plans for budget management and perform financial forecasts.
Securities underwriter: Securities underwriters administer the distribution activities of new securities from a business company. They work in close connection with the issuing body of the securities in order to establish the price and buys and sells them to other investors. They receive underwriting fees from their issuing clients.
Stock broker: Stock brokers act on behalf of their individual or institutional clients in order to buy and sell stocks and other securities. They are in close contact with their clients and ensure that what they buy or sell through the stock exchange market is according to their clients’ wishes. Stock brokers undertake analyst research to make recommendations to their clients and expand their client base through various methods.
Insurance claims manager: Insurance claims managers lead the team of insurance claims officers to ensure they handle insurance claims properly and efficiently. They deal with more complex customer complains and assist with fraudulent cases. Insurance claims managers work with insurance brokers, agents, loss adjusters and customers.
Department manager: Department managers are responsible for the operations of a certain division or department of a company. They ensure objectives and goals are reached and manage employees.
Aircraft pilot: Aircraft pilots control and navigate aircraft. They operate the mechanical and electrical systems of the aircraft and transport people, mail and freight.
Pension scheme manager: Pension scheme managers coordinate pension schemes in order to provide benefits in retirement to individuals or organisations. They ensure the daily deployment of the pension fund and define the strategic policy for developing new pension packages.
Relationship banking manager: Relationship banking managers retain and expand existing and prospective customer relationships. They use cross-selling techniques to advise and sell various banking and financial products and services to customers. They also manage the total relationship with customers and are responsible for optimising business results and customer satisfaction.
Dividend analyst: Dividend analysts calculate and allocate dividends and interest incomes of a company’s earnings to a category of its shareholders. They assess business systems and processes in order to identify user needs and to deliver appropriate solutions. They also undertake dividend forecasts on amounts and payment schedules and identify potential risks, based on their financial and market price expertise.
Human resources manager: Human resources managers plan, design and implement processes related to the human capital of companies. They develop programs for recruiting, interviewing, and selecting employees based on a previous assessment of the profile and skills required in the company. Moreover, they manage compensation and development programs for the company’s employees comprising trainings, skill assessment and yearly evaluations, promotion, expat programs, and general assurance of the well-being of the employees in the workplace.

References

1. Manage financial risk – ESCO