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Risk manager vs underwriter

The differences between risk managers and underwriters can be seen in a few details. Each job has different responsibilities and duties. Additionally, a risk manager has an average salary of $116,072, which is higher than the $61,751 average annual salary of an underwriter.

The top three skills for a risk manager include oversight, risk assessments and project management. The most important skills for an underwriter are customer service, investor guidelines, and mortgage loans.

Risk manager vs underwriter overview

Risk ManagerUnderwriter
Yearly salary$116,072$61,751
Hourly rate$55.80$29.69
Growth rate17%-4%
Number of jobs75,7958,510
Job satisfaction-3
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 66%
Average age4644
Years of experience8-

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.

What does an underwriter do?

An underwriter's duties depend on the line of work or industry involved, such as mortgage companies, insurance, or lending firms. However, an Underwriter's responsibility will mainly revolve around using their extensive expertise on how a company will achieve financial gains, and assessing the possible financial risks of a client by reviewing various aspects to determine their capacity to uphold monetary obligations. Most of the time, the Underwriter's tasks will also involve evaluating a client's credit history, health, assets, overall financial history.

Risk manager vs underwriter salary

Risk managers and underwriters have different pay scales, as shown below.

Risk ManagerUnderwriter
Average salary$116,072$61,751
Salary rangeBetween $84,000 And $160,000Between $39,000 And $96,000
Highest paying CitySan Francisco, CABoston, MA
Highest paying stateCaliforniaMassachusetts
Best paying companyCredit KarmaGoogle
Best paying industryTechnologyManufacturing

Differences between risk manager and underwriter education

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

Risk ManagerUnderwriter
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 66%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Risk manager vs underwriter demographics

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

Risk ManagerUnderwriter
Average age4644
Gender ratioMale, 59.3% Female, 40.7%Male, 38.4% Female, 61.6%
Race ratioBlack 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, 9.2% Unknown, 2.5% Hispanic or Latino, 9.6% Asian, 5.6% White, 72.7% American Indian and Alaska Native, 0.4%
LGBT Percentage11%9%

Differences between risk manager and underwriter duties and responsibilities

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.
  • Show more

Underwriter example responsibilities.

  • Attain Jr. underwriter status and AUS underwriting authority.
  • Manage AUS findings and analyze approvals and results accordingly.
  • Complete initial review of appraisals, borrower credit documents, and DU/LP findings according to Fannie Mae and investor guidelines.
  • Research and develop SBA program.
  • Work on project putting together HPR policy.
  • Resolve issues preventing final disposition of REO properties.
  • Show more

Risk manager vs underwriter skills

Common risk manager skills
  • Oversight, 10%
  • Risk Assessments, 6%
  • Project Management, 6%
  • Portfolio, 5%
  • Strong Analytical, 4%
  • Operational Risk, 4%
Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%

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