Collections manager vs risk manager

The differences between collections managers and risk managers can be seen in a few details. Each job has different responsibilities and duties. It typically takes 6-8 years to become both a collections manager and a risk manager. Additionally, a risk manager has an average salary of $116,072, which is higher than the $59,529 average annual salary of a collections manager.

The top three skills for a collections manager include customer service, collection management and portfolio. The most important skills for a risk manager are oversight, risk assessments, and project management.

Collections manager vs risk manager overview

	Collections Manager	Risk Manager
Yearly salary	$59,529	$116,072
Hourly rate	$28.62	$55.80
Growth rate	17%	17%
Number of jobs	44,553	75,795
Job satisfaction	-	-
Most common degree	Bachelor's Degree, 51%	Bachelor's Degree, 66%
Average age	46	46
Years of experience	8	8

What does a collections manager do?

A collections manager is an individual who manages a staff of collectors whose job is to contact companies and individuals for the late payments on the products and services they have received. Collections managers oversee a company's process of retrieving money owed to them by assigning collectors to collect the money. They are required to handle customer complaints and must negotiate with customers about payment arrangements to ensure they are being paid. They also provide reports on the collection department's progress, statistics, and data analysis.

What does a risk manager do?

A risk manager is responsible for analyzing potential risks that may affect the organization's operations, reputation, and market credibility. Risk managers identify risk controls and discuss business contingency plans for unforeseen circumstances to prevent delays in operational services. They also develop compliance training and programs for all the employees to provide them the awareness of the safety and security regulations within the company premises. A risk manager must have excellent communication and leadership skills, especially on handling and investigating cases that might compromise the business stability and financial status.

Collections manager vs risk manager salary

Collections managers and risk managers have different pay scales, as shown below.

	Collections Manager	Risk Manager
Average salary	$59,529	$116,072
Salary range	Between $42,000 And $83,000	Between $84,000 And $160,000
Highest paying City	New York, NY	San Francisco, CA
Highest paying state	New York	California
Best paying company	Amazon	Credit Karma
Best paying industry	Health Care	Technology

Differences between collections manager and risk manager education

There are a few differences between a collections manager and a risk manager in terms of educational background:

	Collections Manager	Risk Manager
Most common degree	Bachelor's Degree, 51%	Bachelor's Degree, 66%
Most common major	Business	Business
Most common college	Stanford University	University of Pennsylvania

Collections manager vs risk manager demographics

Here are the differences between collections managers' and risk managers' demographics:

	Collections Manager	Risk Manager
Average age	46	46
Gender ratio	Male, 50.8% Female, 49.2%	Male, 59.3% Female, 40.7%
Race ratio	Black or African American, 8.0% Unknown, 4.1% Hispanic or Latino, 15.5% Asian, 7.3% White, 64.7% American Indian and Alaska Native, 0.3%	Black or African American, 7.5% Unknown, 4.1% Hispanic or Latino, 14.4% Asian, 10.1% White, 63.5% American Indian and Alaska Native, 0.3%
LGBT Percentage	11%	11%

Differences between collections manager and risk manager duties and responsibilities

Collections manager example responsibilities.

Achieve 182 FTE save, and annual net saving of $2.8MM
Manage Medicaid accounts in effort to receive payment from them.
Manage self pay and Medicaid pending collections throughout the southeast region.
Organize the managed care effort to ensure that patients are not accept from incorrect PPO's and HMO's.
Create and implement new quantitative process to achieve corporate DSO targets that determines monthly cash collection targets by business unit.
Achieve historical low of six percent in A/R over 30 days past due and reduction of DSO to 53 days.

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Risk manager example responsibilities.

Lead team in addressing Sarbanes-Oxley, HIPAA, and SAS70 compliance and control mandates.
Develop procedures and policies to manage site implementation of successful JD Edwards ERP system.
Direct staff, manage A/R and reconciliations, petty cash disbursements and tracking of all incoming claims and payments.
Manage the loan loss receivables SAS data mart, document change initiatives, implement SAS coding changes and process ongoing updates.
Manage accounting procedures and general ledger reconciliations.
Lead SOX project planning and implementation, successfully implement the corporate governance policies and internal control framework.

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Collections manager vs risk manager skills

Common collections manager skills

Customer Service, 15%
Collection Management, 9%
Portfolio, 7%
FDCPA, 5%
Delinquent Accounts, 4%
Credit Card, 4%

Common risk manager skills

Oversight, 10%
Risk Assessments, 6%
Project Management, 6%
Portfolio, 5%
Strong Analytical, 4%
Operational Risk, 4%

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Updated January 8, 2025

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