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MBA in Risk Management: Prospects & Career Options

May 26, 2016 15:17 IST
    MBA in Risk Management: Prospects & Career Options
    MBA in Risk Management: Prospects & Career Options

    Taking risk is something which comes on as an additional baggage with our ‘life’. We need to take risks for our growth and development. It exists in everything, for say:

    1. Buying a new car (risk of theft),
    2. Going on a trip to Kashmir (risk of terrorist attack),
    3. Buying a new dress (risk of receiving comments instead of compliments),
    4. Changing a job (risk of not liking it),
    5. Getting Married (risk for life) or
    6. Taking admission in MBA (risk of an uncertain career).

    However, if you add ‘management’ after this tiny word RISK, everything changes from VULNERABILITY to STRENGTH

    Risk management is all about curbing the potential risks to minimize its threat, for example, getting insurance of the car before purchasing it, getting the latest news before going to Kashmir, examining the work environment before taking the career plunge, marrying the one you love and taking admission in a particular MBA field only after reading articles at Jagran Josh.

    From hospitals to sport, insurance to logistics, security to lodging, successfully managed risks help civilizations accomplish higher growth. 

    Walter Wriston, late CEO of Citicorp, quoted that,

    So, take a risk and embark on this journey of management, only after gaining the correct knowledge. The sole purpose of this comprehensive article is to equip you with detailed knowledge pertaining to MBA in Risk Management such that you can decide whether this career direction is what you desire. You will find here the following topics:  

    1. An Introduction to Risk Management
    2. Eligibility criteria for pursuing MBA in Risk Management
    3. Rationale for choosing a career in Risk Management
    4. Syllabus taught in Risk Management
    5. Career Options/Opportunities after Risk Management
    6. Pay Packages offered to Risk Management
    7. List of Top/Best Colleges to Risk Management
    8. List of Top Recruiters that hire Risk Management

    What is MBA in Risk Management?

    In a broad way, risk management is to comprehend, analyze and address the various risks in an organization to make certain that the desired objectives are met.

    MBA’s in Risk Management works at generating those professionals who can transform the impending risks into business opportunities through strategic implementation of solutions. This educational program covers the foundation and ideologies of risk management, providing you with specialized knowledge that will qualify you as a vital asset of your organization.

    MBA in risk management will teach you how to formulate and implement operational risk management plans – a priceless competency considering today’s competitive market. It reaches out to the following spectrum:

    This degree imparts you with awareness regarding current business scenario, financial impact of insurance and employees, theoretical markets and decision-making schemes. It will basically cover the following domains:

    • Corporate finance
    • Marketing and business environment
    • Corporate risk management
    • Financial analysis and investments
    • Strategic management and leadership
    • Business ethics

    After acquiring this highly dedicated course, you can either be a part of reputed organizations or pursue other certifications as an additional asset or participate in internship programs. But before that, let us understand that why opting for this exclusive stream is a good idea?

    Why MBA in Risk Management?

    As risk management is all about identifying and mitigating risks, it would be of use to first understand the risks pertaining in the entire industry spectrum of India. There are 12 impending risks in the country that leaves the Indian economy vulnerable.

    The given below figure portrays the risks in the ascending order pertaining to their popularity. The top most risk posing as a high treat is corruption, bribery and corporate frauds, as of 2015. Among the others are

    1. information and cyber insecurity,
    2. terrorism and insurgency,
    3. business espionage,
    4. crime,
    5. accidents,
    6. fire and natural hazards, etc.

    To control the risks, the government is in high need of decision makers who can rectify the situation by analyzing the impact of these threats and deploy strategic methods in preventing them.

    Source: India Risk Survey, 2015

    Figure: Overall Risk Ranking

    Risks persist across multiple industrial sectors in India such as manufacturing, IT, security services, education, financial services, government and infrastructure. The top risks dominating each of these industries are described below. Be in government industries or private companies, all our facing threats that hamper the path of success if not dealt with.

    Source: India Risk Survey, 2015

    Figure: Top three risks across industrial sectors

    And when looking over their trend over the few years, it is noted that the risks have only been increasing and are projected to further scar our industries. The top five of the risks are strikes that gave emerged from 2013 to 2015 have been presented in the below figure.

    The risks that have been reducing are strikes, closure and unrest that ranked 1 in 2013 and have been decreased to 6 in 2015, political and governance instability, ranking 2 in 2013 is now at 11 in 2015. This shows the positive impact of governments efforts in dealing with the risks.

    Source: India Risk Survey, 2015

    Figure: Yearly trends in risk ranking

    Though the organizations are putting their efforts in recognizing risks and finding elucidations, looking at the yearly trends and threats across the industries, it is safe to say that we are far from reaching an optimal solution.

    It highly requires risk mitigation strategies that can reduce organizational liability and maximize its growth.

    MBA in risk management is a specialized program that will allow you to gain advanced business knowledge pertaining to risk assessment in financial and insurance services, corporate governance, and business continuity. Seeing the trend of risks, it is needless to say that the requirement of fresh talented graduates is boundless. In this specialization, you will be required to strategize risk assessment plans and ensure your organization conforms to ethical standards.    

    Eligibility Criteria for MBA in Risk Management

    Graduating with the degree of MBA in Risk Management with exceptional knowledge will make you capable of implementing strong critical thinking skills, communicating with business professionals in the domains of finance, insurance, consulting etc. It also intends in providing you with cross-functional decision-making in the interiors of your organization. When individuals are educated to this standard, they become valuable asset in managing the variety of business risks. For that, you need to have some basic qualifications. Enrolling in this consistently-high-ranking program requires the following eligibility criterions:

    • Minimum 50% of marks in 10th and 12th
    • A graduation degree in the relevant field from a recognized university with no back-logs
    • Clearance of entrance examinations such as CAT/MAT/XAT etc.

    Skills Required to Pursue MBA in Risk Management

    The goal of this degree is to generate rational and skillful individuals who can apply sound ideologies of risk management. You, however, should also aim at acquiring the following skills, in order to prove your worth.

    Are you equipped with interpersonal skills?

    Do believe in risk-taking?

    Are you a team-builder?

    Do you possess analytical skills?

    Are you a solution-seeker?

    Can you develop corporate awareness?

    Are you a decision-maker?

    Are you data-driven?

    MBA in Risk Management Syllabus

    During this program, you will be taught various domain-specific subjects along with practical education through workshops and seminars. The following are some of the subjects that you will study:

    Subjects for MBA in Risk Management

    Introduction to risk

    Risk management and insurance

    Reforms in Indian Insurance Industry

    Organizational Behavior

    Bank and Risk management

    Marketing of Insurance Services

    Marketing Management

    Marine and Rural Insurance

    Human Resources Management

    Fire and Motor Insurance

    Innovation and knowledge Management

    Business Interruption Insurance

    MBA in Risk Management: Career Options

    Graduates of MBA in risk management qualify to be a part of consultancy and insurance firms or in all the industries mentioned before. In the two-year span of time, you will form a foundation of core competencies in the world of organizational risks, management and insurance. Even interested medical professionals can field can find a place in risk management. As risk is integral in everything we do, you can have bright career opportunities in:

    • Product management
    • Insurance underwriting
    • Financial analysis
    • Business continuity
    • Engineering

    And on these paths, you can play the role of:

    Pay Packages for MBA in Risk Management

    Professionals in risk management emerge from different backgrounds and industries. With high exposure from this program and depending on your score, you can land yourself a great job with great money. Even more, individuals can hop between international and national firms and lands by acquiring transferrable skills with experience in risk management career.  With experience, you can earn up to:

    Work Experience

    Average Salary (Tentative) Per Year

    Less than 1 year

    Rs. 450,000

    5 to 9 years

    Rs. 637,994

    Source: Payscale.com

    Also, as per your job profile, you can have the following average salary of:

    Job Profile

    Average Salary (Tentative) Per Year

    Risk Management Consultant

    Rs. 714,357

    Risk Manager

    Rs. 988,324

    Senior Risk Manager

    Rs. 1,537,041

    Strategy Manager

    Rs. 1,777,785

    Source: Payscale.com

    Top Colleges for MBA in Risk Management

    Following are the list of top colleges in India that offer MBA degree in this specialization:

    1. Institute of Insurance and Risk Management, Hyderabad
    2. Birla Institute of Management Technology, Noida
    3. National Insurance Academy School of Management, Pune
    4. Symbiosis Institute of Distance Learning, Pune
    5. National Law University, Jodhpur
    6. Indian Institute of Commerce and Trade, Lucknow
    7. Gitam Institute of Management, Visakhapatnum
    8. International School of Business and Media, Pune

    Top Recruiters for MBA in Risk Management

    The following organizations are readily hiring degree holders of MBA in risk management:

    1. Life Insurance Corporation (LIC)
    2. HDFC Life
    3. Aviva India
    4. Max Bupa Health Insurance Company
    5. ICICI Prudential Life Insurance
    6. Bajaj Allianz
    7. Exide Life Insurance
    8. Kotak Mahindra
    9. SBI Life Insurance Company
    10. Star Health and Allied Insurance
    11. PolicyBazaar

    Share this article with those who are considering the idea to pursue MBA in a niche specialization. Also, share with us your valuable comments about the prospects of pursuing MBA in Risk Management.

    For more MBA Career related updates, keep visiting jagranjosh.com

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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