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The differences between risk managers and investment bankers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 6-8 years to become a risk manager, becoming an investment banker takes usually requires 2-4 years. Additionally, an investment banker has an average salary of $162,715, which is higher than the $116,072 average annual salary of a risk manager.
The top three skills for a risk manager include oversight, risk assessments and project management. The most important skills for an investment banker are financial services, discounted cash flow, and capital markets.
| Risk Manager | Investment Banker | |
| Yearly salary | $116,072 | $162,715 |
| Hourly rate | $55.80 | $78.23 |
| Growth rate | 17% | 10% |
| Number of jobs | 75,795 | 28,460 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 66% | Bachelor's Degree, 69% |
| Average age | 46 | 43 |
| Years of experience | 8 | 4 |
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.
An investment banker is responsible for selling and issuing securities and financial assets to the stock markets to generate money and raise capital for organizations and financial institutions. Investment bankers also work with private clients to advise them of investment options and financial transactions according to the market's condition and clients' interests. They handle the clients' investment portfolios and create propositions for acquisitions and company mergers. An investment banker must have excellent knowledge of the financial and stock industry, as well as having excellent analytical skills to review statistical data and determine the best financial strategies.
Risk managers and investment bankers have different pay scales, as shown below.
| Risk Manager | Investment Banker | |
| Average salary | $116,072 | $162,715 |
| Salary range | Between $84,000 And $160,000 | Between $95,000 And $276,000 |
| Highest paying City | San Francisco, CA | Boston, MA |
| Highest paying state | California | Alaska |
| Best paying company | Credit Karma | Citi |
| Best paying industry | Technology | Real Estate |
There are a few differences between a risk manager and an investment banker in terms of educational background:
| Risk Manager | Investment Banker | |
| Most common degree | Bachelor's Degree, 66% | Bachelor's Degree, 69% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between risk managers' and investment bankers' demographics:
| Risk Manager | Investment Banker | |
| Average age | 46 | 43 |
| Gender ratio | Male, 59.3% Female, 40.7% | Male, 76.2% Female, 23.8% |
| Race ratio | 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% | Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 11% | 6% |