Find out the top 10 core skills you need to master as a credit risk manager and what hard skills you need to know to succeed in this job.
A Credit Risk Manager is responsible for protecting the business from credit losses by reviewing and assessing the financial history of the company to determine if they are a good candidate for a loan. This position determines the risk of default to the lender, not with a simple yes or no but with an analysis that may lead to a more detailed report.
More job responsibilities include - credit risk reporting on deviations from the set limits and also concentrating on counterparty ratings, exposures, and concentrations, monitoring both expected and unexpected losses as well as reviewing positions, interacting and understanding the risk compliance measures being implemented and ensuring the standards are set, setting limits.
Core Skills Required to be a Credit Risk Manager
Core skills describe a set of non-technical abilities, knowledge, and understanding that form the basis for successful participation in the workplace. Core skills enable employees to efficiently and professionally navigate the world of work and interact with others, as well as adapt and think critically to solve problems.
Core skills are often tagged onto job descriptions to find or attract employees with specific essential core values that enable the company to remain competitive, build relationships, and improve productivity.
A credit risk manager should master the following 10 core skills to fulfill her job properly.
Judgment is the ability to make a decision or form an opinion wisely especially in matters affecting action, good sense and discretion.
A Credit Risk Manager must be a person of good judgment with the ability to make the right decision at the right time and for right reasons especially in prioritizing the work correctly to focus on a few important things and ensure excellent results are delivered.
Knowledge of Company Processes:
Knowledge of Company Processes is the in-depth understanding of a collection of related, structured activities that serve a particular goal for a group of customers or clients who are valuable to the enterprise.
A Credit Risk Manager ought to maintain consistency across the daily processed while keeping a keen eye on the overall plan of the organization by ensuring the company processes are performed and followed.
Team Building represents various types of activities used to enhance social relations and define roles within the different teams at the workplace.
A Credit Risk Manager ought to provide team building activities to his team to cultivate better communication, morale, motivation, productivity and help employees know each other better as well as their strengths and weaknesses to be used in building a better workplace.
Management Skills are also known as leadership skills and involve planning, decision making, delegation, time management and time management to ensure optimum organization in focus and the technical of how and why of accomplishing tasks.
A Credit Risk Manager must understand the business organization, finance, and communication as well as the market and the relevant technologies used to help manage everyone as they work together in a group.
Personal Growth is the improvement of one's awareness, identity, developing talents and potential to facilitate the growth of oneself and the position they handle at the workplace.
A Credit Risk Manager ought to assist his employees in finding themselves by introducing or referring them to methods, programs, tools, techniques and assessment systems that support their development at the individual level in the organization.
Adaptability is the ability to cope with and adapt to unexpected situations in any environment and staying connected with a great attitude.
A Credit Risk Manager must shape the workplace with leadership skills that allow employees to adapt to the provided atmosphere and be able to give their best in the workplace while growing in their ability to become the best employees.
Monitoring others is tracking employee activities monitor the worker engagement with the workplace-related tasks.
A Credit Risk Manager should always monitor his workers to measure productivity, track attendance, incoming and outgoing phone calls, safety spying, employee theft, employee's location, horseplay and collect proof of hours worked using the latest computer detective monitoring system that provides accurate data that cannot be debated.
Personal Relationships is the relationship between individuals who have or have had a continuing relationship of any nature either professional or informal.
A Credit Risk Manager reserves the right to take prompt action if an actual or potential conflict of interest arises concerning individuals who engage in a personal relationship that may affect terms and conditions of employment and he should not also date a subordinate.
Seeing Potential Problems:
Seeing Potential Problems is the ability to structure the current situations and identify developments that could cause problems in the future.
A Credit Risk Manager needs to see potential problems before they occur and work to stop them early enough, he also has to stay ahead of the flow not to be caught you by upcoming issues that could be easily prevented if they were noted soon enough.
Financial Management is the skill of learning how to handle accounting, finance, and organizational management through providing daily data on the operations that take place every day.
A Credit Risk Manager ought to be highly effective in planning and organization, controlling and management of the financial resources to achieve the company's organizational objectives that are laid down to see the growth of the enterprise.
Hard Skills Required to be a Credit Risk Manager
Hard skills are job-specific skill sets, or expertise, that are teachable and whose presence can be tested through exams. While core skills are more difficult to quantify and less tangible, hard skills are quantifiable and more defined.
Hard skills are usually listed on an applicant's resume to help recruiters know the applicant's qualifications for the applied position. A recruiter, therefore, needs to review the applicant's resume and education to find out if he/she has the knowledge necessary to get the job done.
A credit risk manager should have a good command of the following hard skills to succeed in her job.