Hedge Fund Risk Managers


Employment Prospects


Risk managers work for hedge funds (especially those with a large number of assets under management) and third-party vendors (including investment banks) that specialize in providing risk management services to hedge funds. Risk managers also find many opportunities at banks, insurance companies, municipalities, hospitals, airlines, retailers, school districts, construction firms, manufacturers, government agencies, nonprofit organizations, and colleges and universities.

Starting Out

Risk management jobs are found through recruiters, job listings at sites such efinancialcareers.com, professional associations, career fairs, and by applying directly to companies that employ risk professionals. Some people find employment in the hedge fund industry after working in risk management positions at government agencies, or at banks, insurance companies, and other corporations. 

Advancement Prospects

A risk associate can either move to different hedge funds and investment banks or remain at the same firm and advance to the positions of risk manager and then chief risk officer. Some risk professionals move into the trading area because these two areas work very closely together. Experienced and extremely skilled risk managers can eventually become partners in a hedge fund.

There are also opportunities outside the hedge fund industry. Risk managers can find good career options in the insurance industry, become independent consultants, or even advance to CEO or chief financial officer positions. 

Tips for Entry

Be willing to relocate to New York City, Chicago, San Francisco, and other employment hubs for hedge fund professionals. It may open more opportunities.

Institutional Investor’s Alpha (http://www.institutionalinvestor.com) publishes an annual list of the top 100 hedge fund firms in the United States with the highest amount of assets under management. Use this list as a starting point during your job search.

Attend industry conferences to network and learn more about the field. Hedge Fund Alert offers a list of hedge fund conferences in the United States and throughout the world at https://www.hfalert.com/market/calendar.pl.