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How to Become a Credit Analysis Manager

Credit analysis managers, also known as risk analysts, scrutinize financial data and metrics to determine the creditworthiness of an individual or a company in transactions ranging from personal car loans to corporate loans. The role is dynamic, rewarding those with sharp mathematical skills and a high level of analytical acumen. If you’re interested in learning how to become a credit analysis manager, read on for an overview of the key steps involved in pursuing this career.

business colleagues working and analyzing financial figures on both a tablet and clipboard

What Does a Credit Analysis Manager Do?

Credit analysis managers primarily work for financial institutions like credit card companies, investment corporations, investment banks, and commercial banks. They are responsible for gathering quantitative and qualitative data from an individual or company to determine their ability to repay a loan, which the industry calls debt servicing ability. The data can include financial statements, tax returns, balance sheets, and debt schedules. This assessment enables the credit analysis manager to identify financial risks, which are then used to formulate certain recommendations such as establishing a new credit line or a credit line reduction or closure.

Because credit analysis managers can designate borrowers as high or low-risk, they can have a significant impact on individuals’ purchasing power. They also frequently make impactful decisions for companies, as their determinations can help mitigate the risks associated with their organization’s strategies for meeting financial obligations.

Steps to Become a Credit Analysis Manager

Credit analysis managers must possess strong analytical, problem-solving, and critical thinking skills, as the ability to make reliable data-driven recommendations is vital to the role. They must also have solid written and verbal communication skills to effectively interact with their clientele. Time management and organizational skills are essential since it is common for credit analysis managers to oversee numerous client accounts at the same time. Finally, having a strong attention to detail is vital: a small error in the analysis and recommendations could have adverse ramifications.

Earn a Bachelor’s Degree

At a minimum, credit analysis managers are expected to attain a bachelor’s degree in a field related to finance. An online Bachelor of Science in Accounting can immerse students in the fundamentals of the profession, such as the principles of finance, statistics, data analytics, and auditing. These concepts underlie skills essential to risk assessment, and the critical competencies needed for executing assessments on a high level.

While attaining a bachelor’s degree may lead to various opportunities as a credit analysis manager, some students may opt to pursue an advanced degree, such as a master’s degree in accounting. An advanced degree may give students an advantage over other prospects, as it demonstrates a higher level of accounting acumen to prospective employers.

Consider Pursuing a Certification

Credit analysis managers are not required to have industry certification. However, some employers do list industry certification as a prerequisite for qualification.

Several types of certification programs are available for aspiring credit analysis managers. The Risk Management Association (RMA) offers the Credit Risk Certification (CRC), which is geared to credit professionals. Other options include professional certifications from the New York Institute of Finance (NYIF) and the National Association of Credit Management (NACM).

These certification programs typically have prerequisites for enrollment. For example, RMA requires completion of 45 units of activities pertaining to continuing education every three years, among other requirements.

Complete On-the-Job Training

Internships and cooperative programs enable aspiring credit analysis managers to receive training in real-world environments. Trainees can learn various aspects of the role, such as the software used in the position. Typically, the trainees are gradually allowed to take on tasks with less supervision.

Gain Experience as a Credit Analysis Manager

Gaining on-the-job experience is an important step to becoming a credit analysis manager. This role demands competency in data analysis and interpretation, the fundamental components of risk assessments and recommendations. Typically, several years of experience are needed before pursuing a position as a credit analysis manager.

Credit Analysis Manager Salaries

According to Salary.com, as of January 2019, the average salary for credit analysis managers was $97,193. The factors that determine a credit analysis manager salary include level of education completed, certifications obtained, and years of experience. The location of the job may also be a factor.

Employment Outlook for Credit Analysis Managers

The U.S. Bureau of Labor Statistics categorizes credit analysis managers as financial analysts and projects that category to grow by 11 percent from 2016 to 2026. This percentage represents a faster rate of growth than the 7 percent projected for all professions.

Explore Your Career Options

The path to becoming a credit analysis manager can lead to a rewarding profession. What credit analysis managers do plays a vital role in shaping the financial future of an individual or a company. Learn how the online Bachelor of Science in Accounting degree program at Maryville University can help start the journey.

Sources:

Houston Chronicle, “What Does a Commercial Credit Analyst Do?”

Investopedia, “Analyzing a Career in Credit Analysis”

Investopedia, “Getting Accredited for a Career in Credit Analysis”

Maryville University, Bachelor’s in Accounting Career Path

Maryville University, Online Bachelor of Science in Accounting

National Association of Credit Management, Credit Business Associate

New York Institute of Finance

Risk Management Association

Salary.com, Salary for Credit Analysis Manager in the United States

U.S. Bureau of Labor Statistics, Financial Analysts