Risk Assessment
Risk assessment is the process that a risk manager uses to determine the likelihood of loss that’s associated with a particular financial process or individual. The financial risks could include the likelihood that a project might fail, how much money could be lost, how likely the company would be to make money from that venture and other similar processes. Risk managers in the insurance field must measure the risk associated with potential losses. This could include the likelihood that a person will get sick, a determination of how much money the insurance company would have to pay when they get sick, and the types of illnesses that they would be most likely to get.
Budgeting
Budgeting is a key component of risk management. Risk managers are often assigned a role in budgeting because they are the ones who can best assess what processes and operations are likely to cause financial trouble for the business. Their role is commonly to define the worst case scenario that a budget may need to accommodate.
Benefits
Risk managers benefit companies by highlighting the liabilities they face on a day to day basis. The ability to see what risks could occur with new ventures is an invaluable tool for managers and business owners who are trying to determine the best path that a business should take. Risk management is also essential in the insurance field because it helps to determine which insurance candidates are high risk and what premiums should be charged to each individual.
Potential
The role of a risk manager can often expand into other responsibilities. In many cases risk managers are brought on to discuss financial processes because they have the ability and training to determine what potential losses and gains can occur from any given process or financial change. It is easy for a risk manager to move into additional financial positions because of their competencies with numbers, formulas and financial assessments. Risk managers in the insurance field can become part of the upper echelons of the corporate world.
Reference: http://www.ehow.com/about_5505649_role-risk-manager.html
The Risk Analyst 