This post provides exhaustive information on the job description of a credit risk analyst, including the key duties, tasks, and responsibilities they commonly perform.
What Does a Credit Risk Analyst Do?
The credit risk analyst is responsible for carrying out investment loans and property purchases.
His/her job description entails assessing and reviewing the financial history of a company or individual in order to properly determine if it has what it takes to be given a loan.
He/she is expected to properly verify if the individual taking the loan will either be able to pay up as and when due or will default to the lender or bank.
The analysis presented by the credit risk analyst can establish if the lender or bank will give the loan or not.
If the analysis qualifies the individual for the loan, it can equally determine the particular terms and conditions attached to such a loan. Such lending condition can be in form of varying lending rate.
Top-notch analysis may attract less lending rate, while not-too-impressive analysis report may attract higher interest rate.
The credit risk analyst role is particularly important in a number of organizations, like specialist credit agencies, insurance companies, asset and investment management companies, building societies, and foreign, investment and commercial banks.
The collateral demanded from the borrower is equally determined by the credit report submitted by the analyst about the individual.
Some contingencies may also be enforced depending on the credit risk analysis. For example, an individual with rather poor credit report may only be given loan only if his/her bank account does not go lower than a particular level.
The educational level of the borrower is yet another issue put into consideration by the credit risk analyst before the borrower is approved for the loan and this also decides the conditions attached to such loan.
Credit risk analysts work descriptions also majorly involves evaluating various financial data of the borrower. Examples of such financial data are income statements and balance sheets.
This helps the lending company to have an idea of what the default risk attached to the lending process is. This will equally enable them prepare reports for the lender and the client.
Other duties of the credit risk analyst include calculating some financial ratios, which helps the lending company to make helpful comparisons.
He/she is expected to be adequately informed about the company’s lending process and also be well educated.
This is why most companies employing credit risk analysts insist on minimum of bachelor’s degree in relevant fields, like Mathematics, Economics, and Accounting or Finance.
Working experience in areas related to loan application processing, accounts payable and receivables, as well as accounting are also priority requirements for applicants to meet when employing these service providers.
The credit risk analyst must be ready to function under much work pressure. The research he/she carries out will ultimately lead to the lender’s decision on whether to give loans or grants to the borrower or not. Such researches will also direct the company on whether to make certain investments or not.
Credit Risk Analyst Job Description Example/Sample/Template
If you are looking forward to working as a credit risk analyst, below is an example of the likely job description you will be asked to work with.
It expresses the common tasks, duties, and responsibilities of the role in many companies.
- Gather information to help the investment company make decision
- Read financial briefings related to the borrower to the company
- Interpret, analyze and assess all forms of complicated financial information
- Embark on risk assessment analysis
- Pay visit to clients on behalf of the company
- Maintain the credit exposure of the company within certain risk level with set limit in mind
- Utilize systems built for credit sourcing to offset small credit amounts, like little amount of unsecured personal loans
- Get updated information about key issues, like compliance issues, market risk, and legal issues
- Assist the company in enhancing quality of service delivery relating to credit applications
- Oversee composition of recommendations related to policy or procedural changes.
Credit Risk Analyst Job Description for Resume
As with most employment processes, you will need to send a resume to hiring managers or employers for them to consider you for hiring as a credit risk analyst in their company if the position exists.
To be able to prepare the resume, the sample job description above can help you make the job history section of the document, which provides the employer proof of your experience working in the role of credit risk analyst.
Credit Risk Analyst Requirements: Skills, Knowledge, and Abilities for Career Success
The following abilities, knowledge, and skills have been shown to boost the performance of credit risk analysts on various assignments given to them, which puts them in greater position for career success:
- Bachelor’s degree in related field, like statistics, physical, and applied sciences, mathematics, economics, accounting, or finance
- Postgraduate or professional certificate provides added advantage
- Several years of working experience is an added advantage, including internships, work placements, job shadowing insight programs or voluntary experiences in relevant fields
- Ability to adapt to changes in the work environment
- Ability to work under pressure
- Ability to multitask
- Possess self-confidence and high level of reliability
- Possess unquestionable motivational spirit
- Ability to manage time and keep to schedule strictly
- Possess top level interpersonal relationship
- Possess excellent written and verbal communication skills
- Possess relevant IT skill
- Ability to solve problems related to tasks being performed
- Ability to work in a team.
Credit Risk Analyst Skills for Resume
A good resume should have a skills section which shows employers you have the needed skill set to be effective on the job.
The above credit risk analyst skills provide valuable resources to use in creating the skills section of your resume and win the heart of employers.