What does a credit risk analyst do?
A credit risk analyst's primary role is to assess loan and purchase applications to determine a client's ability to uphold financial obligations. Their responsibilities revolve around performing various analyzation techniques to evaluate financial risks, maintain records of all applications and relevant data, and provide advice on businesses on whether to approve or decline the credit application. Furthermore, a credit risk analyst may perform clerical tasks such as producing progress reports and presentations, responding to inquiries, and coordinating with all departments.
Credit risk analyst responsibilities
Here are examples of responsibilities from real credit risk analyst resumes:
- Utilize data manipulation and quantitative analysis using VBA macros, SQL and advance excel knowledge to manage credit risk exposure.
- Design and build portfolio management dashboard for senior management monthly credit strategy meetings using SAS.
- Contribute significantly to credit portfolio analytics through integration of top-down macro risks with idiosyncratic issuer risks.
- Perform monthly/quarterly operational functions supporting the SAS ETL processing to generate client profitability and performance measurement results.
- Partner with municipal derivative marketing and trading risk associates to ensure seamless assimilation of individual trade characteristics.
- Initiate behavior scorecard model for business strategy collection process by fitting logistic regression to longitudinal delinquency history data.
- Modele and analyze spread impact to individual fix income sectors during low probability events by utilizing historical regression analysis.
- Apply auto finance experience, corporate policies, procedures, and departmental research to accurately identify loan origination deficiencies.
- Monitor credit limit breaches and adjust credit lines to accommodate fluctuations in trading volume and market movement on underlying securities.
- Reduce risk associate with mortgage-backed securities by providing quality assurance on the servicing and cash-flow reporting of all parties involve.
- Analyze office administration support for analysts supporting DOD projects to identify efficiency opportunities to prototype and write report of analysis findings.
- Apply research and investigation strategies to assess customer's BSA risk and assign risk ratings.
- Perform analysis on individuals and businesses for SBA as well as USDA loans.
- Analyze current SBA loans to determine if customers are still able to meet their obligations.
- Prepare monthly forecasts, set monthly goals, and generate and justify weekly DSO reports for credit analyst and management peers.
Credit risk analyst skills and personality traits
We calculated that 14% of Credit Risk Analysts are proficient in Risk Management, SAS, and SQL. They’re also known for soft skills such as Computer skills, Detail oriented, and Math skills.
We break down the percentage of Credit Risk Analysts that have these skills listed on their resume here:
- Risk Management, 14%
Developed guidelines to limit trading partner credit exposure and aggregate transaction amounts for inclusion in the Company's Risk Management Policy.
- SAS, 9%
Performed monthly/quarterly operational functions supporting the SAS ETL processing to generate client profitability and performance measurement results.
- SQL, 9%
Involved in extracting data from flat files, Excel spreadsheets and external RDBMS tables using LIBNAME and SQL PASSTHRU facility.
- Strong Analytical, 5%
Demonstrated strong analytical and business problem solving skills; able to understand complex business system functionality and develop strategies.
- PowerPoint, 4%
Utilized PowerPoint to develop monthly presentations to senior management.
- Data Analysis, 4%
Manage account reconciliations and other data analysis for engagement teams totaling $30 million annually.
Most credit risk analysts use their skills in "risk management," "sas," and "sql" to do their jobs. You can find more detail on essential credit risk analyst responsibilities here:
Analytical skills. credit risk analyst responsibilities often require "analytical skills." The duties that rely on this skill are shown by the fact that "management analysts must be able to interpret information and use their findings to make proposals." This resume example shows what credit risk analysts do with analytical skills on a typical day: "analyzed data and created reports by using data visualization tool such as tableau 8.2 to provide business insights. "
Communication skills. A commonly-found skill in credit risk analyst job descriptions, "communication skills" is essential to what credit risk analysts do. Credit risk analyst responsibilities rely on this skill because "management analysts must be able to convey information clearly in both writing and speaking." You can also see how credit risk analyst duties rely on communication skills in this resume example: "researched on the telecommunication industry by performing fundamental credit analysis and financial analysis. "
Interpersonal skills. Another skill commonly found on credit risk analyst job descriptions is "interpersonal skills." It can come up quite often in credit risk analyst duties, since "management analysts work with managers and other employees of the organizations for which they provide consulting services." Here's an example from a resume of how this skill fits into day-to-day credit risk analyst responsibilities: "analyze financial data by evaluating records using a strong combination of interpersonal, analytical and strong decision making skills. "
The three companies that hire the most credit risk analysts are:
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Compare different credit risk analysts
Credit risk analyst vs. Escrow representative
Credit representatives are professionals who analyze the credit data and the financial statements of firms or individuals for the determination of the risk in lending money or extending credit. The representatives are tasked to prepare reports with credit information used in decision making. They manage credit files and process credit reports from different credit reporting sources. They also mentor and coach credit representatives newly hired in corporate procedures and policies. Also, they expand collection procedures and policies to lessen DSO parameter risk.
While similarities exist, there are also some differences between credit risk analysts and escrow representative. For instance, credit risk analyst responsibilities require skills such as "risk management," "sas," "sql," and "strong analytical." Whereas a escrow representative is skilled in "customer service," "property taxes," "respa," and "residential loans." This is part of what separates the two careers.
The education levels that escrow representatives earn slightly differ from credit risk analysts. In particular, escrow representatives are 13.3% less likely to graduate with a Master's Degree than a credit risk analyst. Additionally, they're 0.7% less likely to earn a Doctoral Degree.Credit risk analyst vs. Credit representative
A credit officer is responsible for evaluating financial documents and account statements to determine the eligibility of an applicant for a loan option. Credit officers communicate with the applicant to discuss the loan process, explain the terms of service, and provide them alternative options that would fit their payment ability and loan needs. They create financial reports and recommend the qualified applicant to the manager for approval. A credit officer should have excellent communication and analytical skills, ensuring that the loan policies adhere to the federal and state regulations.
While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that credit risk analyst responsibilities requires skills like "risk management," "sas," "sql," and "strong analytical." But a credit representative might use other skills in their typical duties, such as, "customer service," "customer accounts," "patients," and "credit card payments."
On average, credit representatives earn a lower salary than credit risk analysts. Some industries support higher salaries in each profession. Interestingly enough, credit representatives earn the most pay in the construction industry with an average salary of $39,878. Whereas credit risk analysts have higher pay in the government industry, with an average salary of $87,272.In general, credit representatives achieve lower levels of education than credit risk analysts. They're 14.9% less likely to obtain a Master's Degree while being 0.7% less likely to earn a Doctoral Degree.Credit risk analyst vs. Credit officer
A Senior Fraud Analyst performs extensive research and analyses to detect suspicious transactions and determine fraudulent activities in financial institutions or business establishments. Their responsibilities typically revolve around monitoring financial transactions and documents, gathering and analyzing various data, conducting account assessments, validating information, and thoroughly reviewing documents. There are also instances where they must set objectives, establish guidelines, produce progress reports, and resolve issues promptly and efficiently. Moreover, as a senior fraud analyst, it is essential to lead and serve as a role model for junior fraud analysts, overseeing their performance while implementing company policies and regulations.
There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, a credit risk analyst is likely to be skilled in "sas," "sql," "powerpoint," and "data analysis," while a typical credit officer is skilled in "credit risk," "credit analysis," "credit approval," and "portfolio management."
Credit officers earn the highest salary when working in the finance industry, where they receive an average salary of $120,621. Comparatively, credit risk analysts have the highest earning potential in the government industry, with an average salary of $87,272.Most credit officers achieve a similar degree level compared to credit risk analysts. For example, they're 1.9% less likely to graduate with a Master's Degree, and 0.0% less likely to earn a Doctoral Degree.Credit risk analyst vs. Senior fraud analyst
Types of credit risk analyst
Updated January 8, 2025
