To become a risk manager, you’ll need approximately 10 years of experience in lower-level risk management positions or in other hedge fund careers. Risk associates must have a year or two of experience (a combination of an internship, co-op, or part-time job) in a risk management position at an alternative investment firm or a corporation.
Risk professionals need excellent communication skills in order to effectively present and explain risk assessment reports. They also need confidence, intellectual curiosity, and independence in order to ask the hard questions that may “rock the boat,” but help their firm avoid major risk areas. Risk professionals should have strong quantitative skills and the ability to use risk management software. Other important traits include leadership abilities, strong analytical and problem-solving skills, and a thorough understanding of a variety of trading products (e.g., options, fixed income, mortgage backed securities, swaptions) and options risks (e.g., delta, gamma, Vega, rho, and theta).