Risk Management Exit Opps

I'll be working in risk management at a BB and I'm curious what type of exit ops are available after two years? This is a credit risk position, so it's IBD-focused (not a market risk position, which deals more with S&T).

I've heard that risk management analysts can get into distressed debt shops, but I'm curious what other opportunities there might be.

Thanks for the help.

Comments (24)

Mar 3, 2010 - 9:47pm
whats-the-damage, what's your opinion? Comment below:

there's got to be somebody who has some info on this....

Best Response
Apr 7, 2010 - 1:34am
RiskyBizness, what's your opinion? Comment below:

I will be working as a BB credit risk analyst in NYC myself soon. I didn't intern there but I asked a girl I go to school with who did. Here's what she said:

"There are a few (1 specifically that I know of) who moved onto small PE firms, a few who pursued corporate finance jobs in companies like apple and a lot move onto business school. I also know 2-3 who moved onto portfolio/asset management firms.

I'd say this program really sets you up for portfolio and asset management type jobs. It's easier to exit into that industry. "

So, I think it is highly beneficial to get a CFA as a risk analyst. With that I think portfolio/asset management exit opportunities are very realistic. I have enlisted military experience (an extra 5 years of work experience) so my plan is to apply to business school after the credit stint and hopefully be a CFA by the time I get an MBA.

May 12, 2010 - 12:25am
RiskyLVRG, what's your opinion? Comment below:

Opportunities are endless, have you thought about what YOU would want to do after RM? Then think about what you would like to see on the resume if you were a potential employer - start working towards that.

Plenty of people go to PE, portfolio management or MBA. CFA will be beneficial if you are planning a portfolio management career.

May 12, 2010 - 12:26am
BusinessGreek, what's your opinion? Comment below:

Credit Risk Management - Exit opportunities? (Originally Posted: 05/04/2012)

Happy Friday everyone-

I'm contemplating a change from my current position, looking at some internal opportunities as I enjoy the culture / people at the bulge bracket bank I work for. That said, I have a short list of target positions I'm interested in (primarily Capital Markets and Research positions).

However, someone I spoke with pointed me in the direction of credit risk, i.e., managing the bank's exposure to a client and managing the credit relationship. This group sits within the investment bank, but is known to be less intense hours-wise, correspondingly less lucrative, but I'm curious- any informed members care to opine on possible exit opportunities with a skillset analyzing credit?

TL,DR: What could I do after a couple years of working in Credit Risk Management at a BB?

Position description below: remains current on all aspects of the credit relationship, including exposure, compliance, potential problems and opportunities  provides credit expertise in structuring derivative and loan transactions  leads or assists in negotiating and finalizing documentation for derivatives and loan products  prepares credit analysis and seeks approval for all transactions, including loans, derivatives and other trading exposures  provides a cohesive and comprehensive approach to review ratings, tiering and risk appetite of our clients  Liaise with Legal, credit origination, banking, commodities, derivative marketing and many other internal groups

May 12, 2010 - 12:28am
td12, what's your opinion? Comment below:

This article may provide some insight: http://www.streetofwalls.com/articles/hedge-fund/how-they-did-it/credit-analyst-to-equity-analyst/

May 12, 2010 - 12:29am
BusinessGreek, what's your opinion? Comment below:

Thanks for the article td- certainly an interesting read, and in fact encourages me to consider CRM since I tend to think more of the potential downside rather than potential upside in general.

Any other opinions? It seems like a credit skill set would be valuable at the right funds, but what about exit opportunities to industry (as is the case with equity research and coverage groups)?

May 12, 2010 - 12:31am
jerome123, what's your opinion? Comment below:

What is your 10 year plan? Why so focused now on such a random specialty?

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May 12, 2010 - 12:32am
[email protected], what's your opinion? Comment below:

Exit from Risk management (Originally Posted: 09/25/2012)

Hi ,

I am an ACA and CFA qualified and doing risk management - more precisely , Credit risk and Stress testing. Total Experience of around 3 years ( a part of it in Operational risk and retail credit analysis as well). Better late than never i realise i am making no use of my core skills and want to switch to corporate finance .

I am good with financial analysis and have also learned financial modelling on my own and very good with corporate finnace concepts i learnt furing CFA. Have also done some Profit and loss financial modelling in the current job.

I am confused how to make this move and if it is at all possible to crack it in the current market . If i have missed the bus ? Where else can i make my move and do justice to my skills.

May 12, 2010 - 12:35am
bluehorshoe, what's your opinion? Comment below:

Rashi, at my BB we have Credit Risk Groups that are industry specific. So for example someone that works in Credit Risk in Healthcare would be well suited to make the change to IB in a healthcare group. It is done pretty frequently. Here the Credit Risk analysts get a lot of exposure to the investment bankers when working on deals etc. Spending time with MDs in industry groups while working on the risk side definitely provides the opportunity for you to network/ show off your skills.

Hope that helps.

May 12, 2010 - 12:36am
iitiansinghal, what's your opinion? Comment below:

Risk Management Exit Options (Originally Posted: 01/12/2014)

Hi - I have a year experience as Risk Analyst with HSBC,India, where I worked in Stress testing Unit (majorly building statistical models for capital calculations in stress scenarios).

Then I moved to Credit Suisse,India where I am with the Chief Trading Risk Office for emerging markets since 5 months.

I wanted to know about the exit options from Risk Management say after another 1-2 years. How easy is it to move into Trading or maybe Structuring profiles?

Also, if I wanted to move to Private Equity and Hedge Funds, how much would Risk Management help me?

Any help would be appreciated. Thanks in advance!

May 12, 2010 - 12:39am
pikesoncepikestwice, what's your opinion? Comment below:

Looking for some advice on this as well. Took a FT BB credit risk offer but wondering where it could lead to down the road?

"Hire character. Train skill." – Peter Schutz
May 12, 2010 - 12:40am
morra, what's your opinion? Comment below:

Risk management vs. Asset Management, exit ops, compensation, hours... (Originally Posted: 08/06/2015)

Hi everyone,

I am currently employed at an intern/temp position at relatively big european bank in Trade Finance. I am going to an elitist european business university and have been accepted into the most competetive BSc programs in the country.

I have been scouting around the bank to find out where I want to go, and I have taken some interest about Risk Management.

I think I want to end in a corporate finance job, or maybe Asset Management, where the compensation is good, and the hours are not cruel (40-60/week), and I am wondering if Risk Management is a good place to start this path?

From what I have heard the pros of Risk Management is a lot of technical know-how (good for going into Corp Fin or AM), good hours and MO with some FO exposure (depends on the bank I guess)

Cons are lower compensation than AM, low salary progression and pretty bad exit ops (I have heard that you can go towards credit trading, which might be interesting, but that's pretty much it).

  1. Is this a correct assumption?
  2. Is Risk Management a retarded place to start if you want to go into AM or Corp Fin later?
  3. Could I transfer from Risk Management to AM later on, and recieve a higher salary while still working okay hours (40-60/week)?
  4. Would there be any possibility to do Corp Fin later?
  • 2
May 12, 2010 - 12:41am
CorpFinHopeful, what's your opinion? Comment below:

Not sure about Corp. Fin. but a fair few of my colleagues have left to work in Asset Management (some even made it to Black Rock and the like). Some have also transferred over to IB, and from what I've heard some people even managed to go work for HF's. While not as good as IB, S&T, ER, etc. I would hardly call the exit opps bad.

May 12, 2010 - 12:42am
morra, what's your opinion? Comment below:

Thank you for the answer.

Well, that sounds comforting. Then my question would be, is doing RM a good way to get into AM? Or would it be easier to just try to get into AM directly?

I guess some of the quant skills will be good to have in AM as wel...

May 12, 2010 - 12:43am
CorpFinHopeful, what's your opinion? Comment below:

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