A quick google search tells me that the average salary for a Risk Manager in the UK is somewhere between £55,000 and £65,000. This jumps up massively for our friends from the US who can expect to pick up somewhere around $120,000 on average in the Risk Manager position.
Risk management skills are highly sought after, hence the relatively high salaries paid.
These high salaries though mean that there is lots of competition for each role. If you have the skills, experience and qualification you should be able to garner some interest from organisations looking to hire Risk Managers.
But just having the skills, the experience and the requisite qualifications isn’t all that’s necessary to actually land the job. You also need to be able to correctly communicate these to the hiring manager.
That is why in this article we are going to be looking at how you can nail the Risk Manager interview and get that highly sought after role. Firstly we will be looking at some tips for the interview itself, then we will look at the best approach to take when answering Risk Manager questions (and also what not to do!). Then finally we will look at some of the most common interview questions you can expect to get.
Ready? let’s get cracking…
Risk Manager Interview Tips
Lean heavily on your experience. This applies even if you have never held a Risk Manager position before. A Risk Manager is responsible for numerous things but primarily the management of the day-to-day risk and overseeing the organisation’s risk policies. You don’t need to have held a Risk Manager title previously to have participated in similar activities. When answering questions lean heavily into these.
Know your audience. You should always research the organisation you are interviewing for. But what people don’t think to do is also research the interviewer and the hiring manager (if these are different persons). You want to impress the person making the hiring decision so you should research them specifically trying to understand what makes them tick and what they are looking for in a new employee.
How Best To Answer Risk Manager Interview Questions
Unless the question you are asked is a straight ‘up or down / yes or no’ style question then you are going to need to learn to describe, expand and elaborate on your answers. The best way of doing this is to follow the B-STAR technique for answering interview questions.
Answers using this method follow the below structure:
B – Belief – What are your thoughts and feelings with regard to the subject matter? – As a Risk Manager you should have your own set of philosophies and risk-appetite approaches that you tailor to each situation.
S – Situation – What was going on? Briefly explain the scenario that was taking place. – Try not to spend too much time describing the situation. The bulk of your answer needs to be about you and what you did so keep the situation simple to understand and even simpler to describe.
T – Task – What was your role in the action? Most of the time it is best that you are taking an active rather than passive role in the encounter – You are going for a Risk Manager role (presumably if you are reading this) so the situation you describe should have you involved with the management of risk within an organisation.
A – Activity (or action) – What did you do? Detail the steps you took and why you took them. – This should take up the bulk of your time answering the question.
R – Result – How did everything end up? Try to use figures if possible (e.g. 99% of issues were resolved in first instance, Project failures reduced 50% etc.).
Remember though that the B-STAR technique is descriptive not prescriptive. You do not need to follow this flow strictly, go with what is best for your answers and that will allow you to put your point across and show your experience the best.
What You Should Not Do When Answering Risk Manager Questions
Do not avoid the question.
Do not describe a failure (unless specifically asked).
Do not downplay the situation.
Do not over hype the situation.
Do not say you have no experience with the subject matter.
Do not reject the premise of the question.
Do not have a passive role in the situation.
Do not give a one-sentence answer.
Do not overly describe the scenario and miss the action.
Risk Manager Interview Question & Answers
What are your weaknesses?
“I have never worked with <insert tool or software> before and I see that it plays an integral role in your organisation. I have worked with <insert other tool> before and from what I hear it lacks a number of features present in <tool>. I look forward to the opportunity to use this new tool as I hear great things about it, I have also found a crash course online that I would look to take to get up to speed as quickly as possible…should I be offered the job”
Check out our full post on how to answer this question
How Do You Assess And Monitor Risk Within A Project?
“Managing risk is one of the most important tasks that is undertaken by a Project Manager (with assistance from a good Risk Manager). It is crucial to success that risks are appropriately identified, assessed and monitored throughout the project lifecycle.
In order to achieve this one of the first project artefacts that I advise PMs to create when forming a new project is the RAID log. Within this log they should record all potential risks to the project (as identified by the project team and stakeholders).
Within the log, risks are assessed as to the likelihood and severity and an appropriate plan is put in place, usually looking to reduce or eliminate the risk or to mitigate the impacts should the risk crystallise.
Within the log should be a date for review. When this date comes around the item is re-examined to determine if all the underlying logic still holds true.
I have found that the on-going monitoring of the risks is the most difficult to get people engaged with. It is easy to explain the need for the initial session but slightly more persuading is needed to get people involved in continually updating the risks.“
Check out our full post on how to answer this question
Can you provide an example that demonstrates your attention to detail?
How do you deal with employees who prove difficult to work with?
How do you stay up-to-date on the best practices of risk management?
Can you describe the most problematic situation you have dealt with?
What experience do you have writing and presenting risk assessment reports?
Discuss you experience in presenting risk assessments and reports
What is the role of risk management in an organisation? How do you go about advocating for risk management?
How do you operate under pressure? Describe your most stressful project and how you managed it.
Have risk recommendations ever brought you into conflict with a stakeholder or department’s goals?
How Do You Mitigate Risk?
How Can You Perform Risk Identification?
Briefly Explain The Process Of Risk Management
How Can You Communicate Risks Effectively To Stakeholders?
Explain The Meaning Of Risk Breakdown Structure?
What Are The Types Of Project Risks?
What Is Risk Probability And Risk Impact?
Who Performs A Risk Assessment?
Describe The Daily Routine Of Risk Managers?
How do you convince people to take risk management more seriously? Can you share an example of where you have done so?
Tell me about a time when you had to source information from multiple people or locations. How did you make a determination about what information was relevant?
Tell me about the risk process you use in your current/previous role. What have you learned and how would you improve the process?
Can you share an example of a situation you have been in where you have had to recommend implementing contingency plans or risk management measures that you knew would be unpopular?
What experience do you have with risk modelling?
Give me an example of a time where you had to make a decision alone. What was the outcome?
Tell me about a recent experience where you were under pressure. How did you manage the stress you were under to ensure an effective result?
What do you think are the top risks affecting our business/industry at the moment? What will they be in five years?
Do you have any questions for us?
10 Questions To Ask At The End Of An Interview (And 6 That You Shouldn’t!)
Additional Risk Manager Interview Questions and Example Answers
“Can you provide an example of a time when you identified a risk before it became an issue?”
When you’re asked “Can you provide an example of a time when you identified a risk before it became an issue?” you’ll want to showcase your ability to anticipate potential problems and implement preventive measures. It’s an opportunity to illustrate your analytical thinking and proactive approach, so focus on providing a specific instance from your professional history.
Absolutely, I can recall a specific situation that took place during my tenure as Risk Manager at a financial services firm. The firm was planning to launch a new digital banking service, which was expected to generate significant growth. However, during the early planning stages, I recognized that there could be substantial operational and cyber risks associated with this new service.
Using the firm’s risk management framework, I began conducting a detailed risk analysis. I worked closely with the project team, technology teams, and external cybersecurity consultants to identify and assess potential risks. One of the risks we identified was the possibility of a cyber attack that could compromise our customer data and disrupt the new service.
Seeing this potential risk, I recommended that we implement a series of preemptive measures. These included enhancing our cybersecurity infrastructure, conducting penetration testing, and providing training to our employees on potential cyber threats and their signs. I also suggested the development of an incident response plan, which included processes to contain any potential cyber breach and communicate with stakeholders.
In the end, the measures we took paid off. Shortly after the launch, there were attempts to breach our cybersecurity defenses. However, because of the preemptive steps we had taken, the attempts were swiftly identified and thwarted, with no disruption to the service or loss of customer data.
This experience reinforced my belief in a proactive approach to risk management, identifying and addressing risks before they become significant issues. It’s not just about dealing with problems as they occur, but anticipating them and having strategies in place to mitigate them effectively.
“Describe a risk management strategy you implemented in a previous role.”
For the question, “Describe a risk management strategy you implemented in a previous role,” your answer should clearly outline the process you undertook, the challenges you faced, and the results achieved. This is a chance to showcase your tactical skills, knowledge, and success in risk management.
In my previous role at a medium-sized bank, I was instrumental in implementing an enterprise risk management (ERM) strategy that substantially improved our risk identification, assessment, and mitigation processes. The existing risk management approach was primarily reactive and siloed, and I saw the need for a more proactive and integrated strategy.
The ERM strategy I proposed involved establishing a unified risk management framework that was both comprehensive and standardized across all departments. It encompassed different types of risks, including operational, market, credit, and liquidity risks. I also proposed setting up a central risk management committee responsible for overseeing risk across the organization, making sure everyone understood their role in managing risk, and encouraging a risk-aware culture.
Implementation of the ERM strategy involved several key steps. First, I ensured we had executive buy-in and commitment, as their support was critical to the successful adoption of the strategy. I then organized a series of training sessions for the executive team and department heads to help them understand the value of ERM and their role in it.
Next, we standardized risk identification and assessment processes, integrating them into our day-to-day operations. We implemented a risk register to capture and track all identified risks and used a combination of qualitative and quantitative methods to assess their potential impact and likelihood.
To ensure that risks were effectively mitigated, we developed risk response strategies tailored to each identified risk. We utilized a mix of risk mitigation techniques, including risk avoidance, risk reduction, risk sharing, and risk acceptance, depending on the nature and level of each risk.
Finally, we set up regular reporting and review mechanisms to keep the executive team and board updated on our risk profile and ensure that the ERM strategy was working as intended.
Implementing this ERM strategy was challenging, given the changes it necessitated in our organizational culture and processes. However, the outcome was highly positive. We were able to identify and mitigate risks much more effectively, resulting in fewer incidents, improved regulatory compliance, and increased confidence among our stakeholders. It solidified my belief in the value of a proactive, integrated approach to risk management.
“Why did you choose risk management as a career?”
When responding to “Why did you choose risk management as a career?” aim to convey your passion and commitment for the field. Highlight what you find rewarding about the job, and the skills and personal attributes that drew you to risk management.
Choosing risk management as a career path was a natural fit for me, primarily because of my innate ability to analyze situations, anticipate potential issues, and find effective solutions. Since my childhood, I’ve been fascinated by puzzles and problem-solving games, which eventually developed into an interest in analytical and strategic roles as I entered the professional world.
While studying business administration at university, I found myself drawn to courses involving strategic planning, decision-making, and crisis management. I enjoyed learning about how businesses can navigate the complex landscape of risks and uncertainties to achieve their objectives.
During my internship at a financial firm, I had the chance to work closely with the risk management department. This experience gave me valuable insights into the role of risk management in business strategy and decision-making. It also allowed me to understand the breadth of challenges that Risk Managers face and the significant impact they have on the organization’s success.
One aspect of risk management that I find particularly rewarding is the need for constant learning. Given the evolving risk landscape due to technological advancements, regulatory changes, and global events, a risk manager is always on their toes, continuously learning and adapting. This dynamism and need for perpetual evolution is something that keeps my job exciting and engaging.
Moreover, risk management allows me to leverage my strengths, such as analytical thinking, problem-solving skills, and strategic mindset, to make a real difference in an organization. The ability to identify potential risks, devise mitigation strategies, and guide the organization in times of uncertainty is an immense responsibility and one that I find genuinely fulfilling.
“What methods do you use to assess and manage risk?”
If asked “What methods do you use to assess and manage risk?” your goal is to demonstrate your familiarity with risk management methodologies. Discuss the processes, tools, and techniques you use and explain why you find them effective.
As a seasoned Risk Manager, I have used several risk assessment and management methodologies, but my approach typically involves a combination of qualitative and quantitative techniques.
I usually start with a qualitative risk assessment, which involves identifying potential risks and categorizing them based on their potential impact and likelihood. This step helps prioritize risks and provides a comprehensive view of the risk landscape. I often use brainstorming sessions, interviews, or Delphi techniques to gather information from different stakeholders during this stage.
Once I have a good understanding of the risk landscape, I delve into quantitative risk assessment techniques. I’m experienced in using methods such as Monte Carlo simulations, decision tree analysis, and sensitivity analysis, among others, depending on the nature and complexity of the risk at hand. These techniques allow me to numerically estimate the probabilities and potential impacts of the identified risks.
When it comes to risk management, I strongly believe in an integrated, organization-wide approach. Risk management is not a one-time activity but a continuous process. It involves regular monitoring and reviewing of risks, and making necessary adjustments to the risk management strategies.
I’m also a firm believer in leveraging technology for effective risk management. Tools such as risk management software can greatly enhance risk identification, analysis, and monitoring processes. In my previous role at XYZ Corp., I was instrumental in implementing a risk management software that improved the efficiency and accuracy of our risk management processes.
Moreover, I ensure that the risk management strategies align with the company’s risk appetite and strategic goals. It’s crucial to maintain a balance between risk mitigation and opportunity exploitation, and this balance is unique to each organization.
To sum it up, my approach to risk assessment and management is dynamic and adaptable, always catered to the specific needs and context of the organization. I’m always open to learning and adopting new methodologies and tools that can enhance risk management effectiveness.
“Explain how you communicate risk to stakeholders.”
When answering “Explain how you communicate risk to stakeholders,” focus on your communication skills and strategies for conveying complex information in a clear and understandable way. It’s crucial to show your capability to balance technical expertise and effective communication.
Communication is a pivotal aspect of my role as a Risk Manager, and over the years, I’ve learned to tailor my communication style based on the audience. My goal is always to provide clarity, context, and actionable insight.
Firstly, it’s essential to have a thorough understanding of the stakeholder’s perspective, their concerns, and their familiarity with risk terminology and concepts. For example, the level of detail and technicality that I might use with the CFO would be different from how I would communicate risks to a non-financial stakeholder.
Secondly, I use visualization tools like risk heat maps or risk matrices to make the information more digestible. Visuals can often convey complex risk data in an intuitive way that facilitates understanding and decision-making.
Thirdly, it’s crucial to communicate not just the risks, but also their potential impact, and proposed mitigation strategies. Stakeholders need to understand not only what the risk is, but also why it matters, and what we can do about it.
To provide an example, during the roll-out of a new project at my previous role in XYZ Company, a potential risk was identified related to data security. I had to communicate this to both our technical team and the board of directors. While the technical team required detailed technical information to understand and address the risk, the board was more interested in understanding the potential impact on the business and the steps being taken to mitigate the risk.
“Can you tell me about a time when you had to make a difficult decision under pressure?”
The question “Can you tell me about a time when you had to make a difficult decision under pressure?” is designed to test your decision-making skills under stress. Choose an example that reflects your ability to remain calm, logical, and focused, even in challenging situations.
Absolutely, I can provide a specific example from my time as a Risk Manager at XYZ Company, where I was managing risk for a large and complex project. The project was nearing its completion phase when our team identified a critical risk that could jeopardize the project’s success. The risk related to a potential fault in a key piece of infrastructure that we were installing. If it failed, it could have led to significant financial and reputational damage.
Making the decision was difficult because of the time pressure and the potential ramifications. The easy and fast decision would have been to ignore the risk, as the probability was low. However, the possible negative impact was substantial. On the other hand, taking immediate corrective action would mean delaying the project, which would involve considerable cost and would not please the stakeholders.
My first step was to gather as much information as I could to understand the problem better. I brought in technical experts for a comprehensive fault analysis and worked with the project manager to understand the implications of a delay. I ensured all this was done within a strict time frame.
After careful consideration, I concluded that the potential downside of the risk materializing was too significant to ignore. I decided to propose a project delay to the stakeholders to resolve the issue thoroughly. To convey my decision, I organized an emergency meeting with the stakeholders, explaining the situation, the potential risks of not addressing the issue, and our proposed plan of action.
This decision was not popular initially, as it involved short-term financial implications. However, I stood by it because I believed it was in the best long-term interest of the project and the company. Eventually, the fault was rectified, and the project was a success. The stakeholders commended the decision, appreciating that it prevented a potential crisis.
This experience taught me the importance of staying level-headed under pressure and making decisions that may be difficult in the short term but serve the best interests of the organization in the long run. It also reinforced the value of clear communication and transparency with stakeholders during challenging times.
“Tell me about your experience with regulatory compliance.”
In response to “Tell me about your experience with regulatory compliance,” demonstrate your understanding and experience with the regulations relevant to your field. Highlight instances where you’ve ensured adherence to these rules and addressed any non-compliance issues.
In my previous role as a Risk Analyst at XYZ Bank, one of my primary responsibilities was ensuring the institution’s compliance with various regulatory requirements. Understanding and keeping up-to-date with regulatory changes is an integral part of risk management because it allows us to understand the environment in which we are operating and the obligations we need to fulfil. Therefore, my first approach was always being proactive in staying informed about any regulatory updates or changes.
One of the key regulations I dealt with was the Dodd-Frank Act. In response to the financial crisis of 2008, the Dodd-Frank Act was established to reduce risks in the financial system. To ensure compliance with this act, I coordinated with different departments to develop policies and procedures that ensured transparency, prevented fraud, and mitigated financial risk. My role also involved continuously monitoring and reporting on the adherence to these policies to senior management and the board.
My experience extends beyond the US regulations. Since XYZ bank has branches in several countries, I also dealt with international regulatory standards like the Basel III norms. We developed a comprehensive approach to meet liquidity coverage ratio requirements and net stable funding ratio requirements, as well as other capital standards. My expertise in both national and international financial regulations helped our bank to navigate smoothly in the global financial landscape without violating any regulatory norms.
A specific instance where I navigated a complex regulatory issue was during a compliance audit where we discovered a potential breach in the anti-money laundering (AML) regulations. This was a serious concern as non-compliance could result in substantial penalties and reputational damage. In response, I led a cross-functional team to investigate the issue, identify the root cause, and remediate it promptly. In addition, I worked on strengthening our internal controls and staff training programs to avoid such breaches in the future.
Finally, I also played a role in liaising with regulators, including the Federal Reserve and the Office of the Comptroller of the Currency. This involved clearly communicating our institution’s risk management processes, responding to any queries or concerns raised by regulators, and implementing their feedback into our risk management strategy.
My experience with regulatory compliance is broad and deep, covering both domestic and international regulations, dealing with various financial risks, and maintaining strong relationships with regulatory bodies. I believe that these experiences would be valuable in this role, where understanding, managing, and communicating regulatory compliance is paramount.
“How have you managed risks in a project you’ve worked on?”
When asked “How have you managed risks in a project you’ve worked on?” aim to discuss specific projects, the risks you identified, and the strategies you employed to manage them. This highlights your practical experience and success in risk mitigation.
In my previous role as a Risk Manager at LMN Financial Services, one of the most significant projects I worked on was the implementation of a new digital banking platform. This project involved various risks, including technology risks, cyber-security risks, operational risks, and regulatory risks.
The first step I took in managing these risks was identifying them through a comprehensive risk assessment. I collaborated with stakeholders from different departments – IT, Operations, Compliance, and others – to conduct this assessment. We used a variety of techniques such as SWOT analysis, brainstorming, and scenario analysis to identify potential risks.
One of the key risks we identified was the risk of cyber threats. As a financial institution, data security is paramount. To address this, we engaged with an external cyber-security consultancy to perform penetration testing on the new platform. Their findings helped us identify potential vulnerabilities, which we then addressed before the platform went live.
Additionally, there were technology risks associated with the implementation, such as system failures or bugs that could disrupt services. To mitigate these risks, we adopted a phased roll-out approach, releasing the platform to a small set of customers initially and gradually increasing the user base. This allowed us to identify and fix issues without affecting all our customers.
There were also operational risks involved. Switching to a new platform meant changes in processes and potential user errors. To manage this, we developed comprehensive training programs for both staff and customers. Furthermore, we established a dedicated support team to address any issues during the transition period.
As for regulatory risks, given the sensitive nature of financial data, we had to ensure that our platform complied with relevant regulations, including data protection and privacy laws. I worked closely with our legal and compliance teams to ensure all regulations were adhered to in the platform’s design and operations.