Hedge Fund Risk Managers
Overview
Introduction
Risk managers identify, analyze, and work to reduce risks at hedge fund firms. These risks range from financial risks to concerns about a firm’s compliance, operational, or Information Technology divisions. Risk managers are also known as chief risk officers and risk officers.
Quick Facts
Median Salary
Employment Prospects
Minimum Education Level
Experience
Skills
Personality Traits
Earnings
Financial risk specialists (FRSs) who worked for firms that engaged in securities, commodity contracts, and other financial investments and related activities earned mean annual salaries of $142,120 in May 2023, according to the U.S. Department of Labor. Ten percent of all FRSs earned $61,090 or less, while 10 percent earned $184,330 or more. Fifty percent of financial risk specialists earned b...
Work Environment
Risk managers work in comfortable offices that are equipped with the latest technology. At large firms, they are assisted by risk associates. Risk managers frequently meet with compliance, investment, legal, and operations professionals to review potential risk areas and address ongoing issues. These meetings can sometimes be contentious if a firm’s managers do not agree with the opinions of th...
Outlook
The U.S. Department of Labor classifies risk managers under the general category of “financial managers.” It predicts that employment for financial managers who work for firms that manage funds, trusts, and other financial vehicles will grow by 20.7 percent from 2023 through 2033, or much faster than the average for all careers.
One major trend affecting the hedge fund industry are the c...