Credit Risk Analyst - Will You Really Enjoy It?
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- Опубліковано 11 чер 2022
- Credit Risk has a lot of complexities to understand but also a multitude of aspects to enjoy. I break down three of my reasons why I enjoy credit risk. These reasons took me back to my original motivations when I was asked credit risk interview questions and why I wanted to work in this area.
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Note: All views are my own and do not represent my past or current employers.
Another key aspect of Credit Risk is risk mitigation, where we are continuously redefining the rules to maximize revenue and minimize defaults.
Very good point ! It’s tough trying to always be ahead of the market !
Thanks for this man - can you talk more about the exit opportunities for credit risk?
Glad you found it useful! From experience, three common exits I've seen are to trading, M&A and risk consultants (in the specific sector you're speaclised credit risk in). There's several more but those three are common ones. I can make a separate video on this topic in due course.
I worked in credit risk audit and then moved in credit risk due diligence. It's a very rewarding career. FRM is not that helpful to become a successful credit risk professional. There is no substitute for relevant work experience and getting into core credit risk is really a matter of luck to be honest.
Very true about the experience. You can’t match high risk customers and bad\good credit risk experiences as a method of learning!
Is having an FRM with knowledge in Python, Data visualisation and financial modelling a good combination for getting good offers as Credit risk analyst or Risk managers. And what are the opportunities in Dubai regarding the same.
I got a job in risk reporting at credit Suisse now. Should I join that given that situation? Also can I get a front-desk job/ exit in private equity post this experience?
Mate it’s going to be tough. There’ll be a lot of people leaving CS and so if you stay you’re going to be doing a lot more work. But it’s a good place to get some experience and congrats on the offer….you can apply to other places but it’s also good if you get some experience from there, experience is experience and that’s the main thing. They haven’t said anything about rescinding offers yet….
Also front office you can but you’d have to move towards credit risk related tasks as opposed to just reporting for the sake of it. Make sure you know what you’re reporting , question people on movements in figures and talk to the right people. I’ve seen it happen before so it’s definitely common.
Private equity would take a while and need you to move into another role for more risk/ FO experience.
Thanks for the insightful video! How's the working hours in a stressful week as a credit risk analyst in an investment bank? (also in normal days)
On a good day you easily leave by 6. But during busy market times eg now, you’d leave after 8. A big part also depends on where snr mgmt sit. They are the ones who request all the data and information. If they’re in NY, a lot of your work , corrections and comments will be based on waiting for them.
@@ThatMuslimLife Appreciate your response Shahryar 😀 Got a junior position offer from EU firm @ Asia office. Hopefully won't be a bad decision... Maybe in your future videos, you could discuss about your career path decisions. It would be interesting :)
Congrats and good luck! It’s a great career for the future. Sure I definitely will make one on my own career journey!
Hey,
And books that helped you hone your skills? Also, what masters degree would help me become a better credit analysts?
I can’t remember specific books but ones where you cover core credit concepts such as LGD for example would be very impressive. If you were to do a masters , one in finance or asset pricing (check the modules of the masters) would be useful. But If you’re interested in credit analysis and want to study further, a CFA would be much better than masters.
Background politics too, going for credit analyst interview tomorrow. Wish me luck..
good luck bro!
@@ThatMuslimLife Thank you! ❤️
I like it but I'm a fresh graduate and don't know where to start. I sadly don't have any skills or experience because I didn't do much in college and focused only in graduating.
Nobody will expect you to know everything about credit risk. I’ve made a video on three things to know for an interview on credit risk, I suggest have a read if that for ideas of how you can grow your knowledge.
Isnt that a credit analyst role and not a credit RISK analyst role? Bc you dont do quantitative like modelling right? What do you think of modelling credit risk, is it really that boring and bad job perspectives?
So it is a credit risk role, the modelling part is different for different companies. Some have data scientists that do it. Modelling is a very good skill set to have and will give you a lot of job opportunities!
love my job
The dream!
Would you recommend it? Got an offer at a midwestern bank as a credit analyst for my first job
Yep definitely! But be prepared , the coming 12 months will be very intense for credit analysts with all that's happening in the economy. However you'll learn so much in a short space of time.
@@ThatMuslimLife what do you think I should study for in the short term? I’m more worried about upward mobility. It would be nice to make 6 figures or near in the next 5 years. Thanks for the quick response, and yes I heard the learning process can be tough
@@GS-kj6ur if you have time CFA would be helpful (once you start working). And theres plenty of upwards mobility with credit risk - especially with the goals youve mentioned
There is college in India gurgaon GRMI (global risk management institute) it provides Post graduation in risk management and it's total fees is 12 lakh and average placement is 9 lpa and they say as per there placement scenario 85% are working in big 4 companies and i have asked few students from thier institute i got positive response only
Can you please suggest this
Have you had a search on LinkedIn on people who are in that network and then seen where they’ve ended up working? That should give a good idea of where people end up and if you’d want to go there as well. I’m surprised that big4 are asking for risk management qualification though !
@@ThatMuslimLife yeah i have mostly are working in EY and also fre are working in Pwc Deloitte KPMG
But my brother is not satisfied saying this would be a scam as why 1 year course would provide guaranteed placement and they say if students are good they more than 9 lpa and i have talked few students who are working in big 4 i got positive response but my brother saying they money for saying this like her not agreed me to do this course says do mba(tier2-3) college would be fruitful
@@ThatMuslimLife so i m little confused as this course would be a good fit for me or this a not as if i will do mba from tier 2 -3 college I will invest 10-15 lpa and the placement will be 5-7 lpa and this course is good and students are also saying doing PGDRM will better doing mba from tier 2-3 college as tier 1 college are hard to crack
Is credit risk analyst same as Data analyst job?.
Nah bro. I'll make a video on a data analyst role soon.
is credit risk analyst and credit risk rating analyst two diff things
They're generally the same, some roles might differ. However from the two you mentioned specifically - the rating one will end up giving a rating such as AA+ at the end whereas not all risk analysts do that as part of their job.
Sounds very much like an underwriting job