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The differences between portfolio 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 portfolio manager and a risk manager. Additionally, a risk manager has an average salary of $116,072, which is higher than the $114,671 average annual salary of a portfolio manager.
The top three skills for a portfolio manager include portfolio management, customer service and risk management. The most important skills for a risk manager are oversight, risk assessments, and project management.
| Portfolio Manager | Risk Manager | |
| Yearly salary | $114,671 | $116,072 |
| Hourly rate | $55.13 | $55.80 |
| Growth rate | 17% | 17% |
| Number of jobs | 43,192 | 75,795 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 66% |
| Average age | 46 | 46 |
| Years of experience | 8 | 8 |
A portfolio manager is responsible for managing the clients' investment portfolios to advise them of the best investment plans to achieve their financial goals and objectives. Portfolio managers determine the most suitable options by evaluating the clients' credit score and risk potential and the client's financial background. A portfolio manager should be highly knowledgeable and updated with the recent financial industry changes to decide on investment plans with maximum returns.
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.
Portfolio managers and risk managers have different pay scales, as shown below.
| Portfolio Manager | Risk Manager | |
| Average salary | $114,671 | $116,072 |
| Salary range | Between $66,000 And $198,000 | Between $84,000 And $160,000 |
| Highest paying City | Stamford, CT | San Francisco, CA |
| Highest paying state | Connecticut | California |
| Best paying company | The Citadel | Credit Karma |
| Best paying industry | Finance | Technology |
There are a few differences between a portfolio manager and a risk manager in terms of educational background:
| Portfolio Manager | Risk Manager | |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 66% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between portfolio managers' and risk managers' demographics:
| Portfolio Manager | Risk Manager | |
| Average age | 46 | 46 |
| Gender ratio | Male, 66.6% Female, 33.4% | Male, 59.3% Female, 40.7% |
| Race ratio | Black or African American, 7.5% Unknown, 4.1% Hispanic or Latino, 14.4% Asian, 10.1% White, 63.6% 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% |