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Market risk analyst vs credit risk analyst

The differences between market risk analysts and credit risk analysts can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a market risk analyst, becoming a credit risk analyst takes usually requires 1-2 years. Additionally, a market risk analyst has an average salary of $90,794, which is higher than the $85,376 average annual salary of a credit risk analyst.

The top three skills for a market risk analyst include risk management, derivative and VAR. The most important skills for a credit risk analyst are risk management, SAS, and SQL.

Market risk analyst vs credit risk analyst overview

Market Risk AnalystCredit Risk Analyst
Yearly salary$90,794$85,376
Hourly rate$43.65$41.05
Growth rate19%11%
Number of jobs40,59532,578
Job satisfaction--
Most common degreeBachelor's Degree, 64%Bachelor's Degree, 70%
Average age3739
Years of experience62

What does a market risk analyst do?

A market risk analyst is responsible for conducting data and statistical analysis to help the business professionals in choosing the best investment and services to take from the assessment. Market risk analysts must have excellent communication and analytical skills to provide profit estimation and design strategies to minimize potential losses. They also identify business opportunities by evaluating the market demand that would generate more revenue resources for the business to increase revenues and close business deals with the clients.

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.

Market risk analyst vs credit risk analyst salary

Market risk analysts and credit risk analysts have different pay scales, as shown below.

Market Risk AnalystCredit Risk Analyst
Average salary$90,794$85,376
Salary rangeBetween $63,000 And $130,000Between $62,000 And $116,000
Highest paying CityJersey City, NJNew York, NY
Highest paying stateNew JerseyNew York
Best paying companyCalpineWestern Alliance Bank
Best paying industryUtilitiesGovernment

Differences between market risk analyst and credit risk analyst education

There are a few differences between a market risk analyst and a credit risk analyst in terms of educational background:

Market Risk AnalystCredit Risk Analyst
Most common degreeBachelor's Degree, 64%Bachelor's Degree, 70%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Market risk analyst vs credit risk analyst demographics

Here are the differences between market risk analysts' and credit risk analysts' demographics:

Market Risk AnalystCredit Risk Analyst
Average age3739
Gender ratioMale, 74.2% Female, 25.8%Male, 56.4% Female, 43.6%
Race ratioBlack or African American, 4.7% Unknown, 4.9% Hispanic or Latino, 11.2% Asian, 14.2% White, 64.8% American Indian and Alaska Native, 0.1%Black or African American, 7.6% Unknown, 2.6% Hispanic or Latino, 9.5% Asian, 10.5% White, 69.4% American Indian and Alaska Native, 0.3%
LGBT Percentage10%11%

Differences between market risk analyst and credit risk analyst duties and responsibilities

Market risk analyst example responsibilities.

  • Used VBA to automate manual procedures to eliminate inefficient processes and save several man-hours per week.
  • Provide market recommendations & manage dealer inventories base on industry data, dealer sales history, & ROI.
  • Build SQL server as market risk data warehouse.
  • Report liquidity profile to management, treasury and trading desks.
  • Write SQL queries to review breakdown of CDS margin components at an account level.
  • Code executable applications to upload reference information from third party providers such as Bloomberg and Markit.
  • Show more

Credit risk analyst example responsibilities.

  • 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.
  • Show more

Market risk analyst vs credit risk analyst skills

Common market risk analyst skills
  • Risk Management, 11%
  • Derivative, 8%
  • VAR, 7%
  • Credit Risk, 6%
  • VBA, 6%
  • Portfolio, 5%
Common credit risk analyst skills
  • Risk Management, 14%
  • SAS, 9%
  • SQL, 9%
  • Strong Analytical, 5%
  • PowerPoint, 4%
  • Data Analysis, 4%

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