Internal Auditing and Risk Management Sector

This sector includes:

Pensions
Risk management
Internal audit
Public revenues, ratings and valuations

With more people in the UK living for longer than ever before the provision and administration of pensions (or retirement incomes) is big business. In 2004, for example, around £70b was contributed to private pension schemes alone in the UK. (source: http://www.statistics.gov.uk/cci/nugget.asp?id=1197)

The disciplines and skills associated with risk management are being applied to an increasing number of areas of business activity - from the management of financial risks to those around health and safety.

The purpose of risk management is recognised as being, “to safeguard an organisation, its customers, reputation, and assets as well as the interests of stakeholders by identifying and managing all threats to the achievement of its business objectives.”
(source: http://www.theirm.org/careers/documents/GenericRiskManagerJobProfile.pdf)

Audit, as defined by the Institute of Internal Auditors (UK and Ireland), “is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

Check out the professional bodies own entries in the Profession Finder

Jobs and salaries:

There are a number of diffrent job opportunities available for people interested in working in the pensions sector. These include roles as pension advisers or consultants, pension scheme managers and administrators. Pay rates vary considerably. Look at TotalProfessions.com Job Search.

The Pensions Management Institute (PMI) runs a dedicated pension jobs website called Pension Careers. You can visit it here – it will give you a feel for the salaries being offered.

The Institute of Risk Management advertises job opportunities and so does the Association of Insurance and Risk Managers (AIRMIC), although you will need to register with AIRMIC in order to visit their jobs pages. On the AIRMIC site registered users can also upload details about themselves to be seen by potential employers. Please also visit TotalProfessions.com Job Search. Pay rates vary considerably in this industry but starting salaries are likely to be in the range of £20-30,000.

The Institute of Internal Audit (IIA) has an online careers centre where you can browse jobs, pick up careers advice, and receive job alerts. The Association of Chartered Certified Accountants (ACCA) may also carry job opportunities for Internal Auditors although these pages are restricted to members only. Pay for Internal Auditors varies considerably, but they can be financially very rewarding jobs.

Routes and qualifications:

The Pensions Management Institute offers seven nationally recognised qualifications covering the various disciplines that support pension scheme management. The Institute of Risk Managers (IRM) runs an International Certificate and Diploma in Risk Management. The Certificate is a broadly based introductory qualification for anyone with an interest in risk management and takes 6-9 months to complete. The Diploma is at post-graduate level and takes three-five years. Information about RM qualifications is available here.

The Association of Insurance and Risk Managers (AIRMIC) does not run its own suite of programmes. However, it would be worthwhile visiting The Global Association of Risk Professionals (GARP) if you were interested in the specialist areas of either financial or energy risk management.

Routes into internal auditing can be found at the Institute of Internal audit.

Funding:

Professional qualifications in these areas are likely to be funded either by the employer or by employees themselves. However, it is recommended that further enquiries are made with the appropriate professional body.

What's it like working in this sector?

Read Job Profiles for many of the roles in this sector. The Institute of Internal Auditors has an interesting section about life as an Internal Auditor - you can also find out more about the skills and aptitudes you’ll need to make it as an Internal Auditor.

How big is this sector?

According to the Institute of Internal Auditors there are globally more 150,000 internal auditors.
In the UK there are at least 1,200 pension schemes with some 15 million members and assets of around £800 billion (source: National Assoc of Pension Funds). It is also estimated that 7m workers in the UK have failed to join schemes provided by their employers (source: NAPF Press Release 2nd March 2010).

The Global Association of Risk Professionals (GARP), which has offices in New York and London, claims to have certified more than 50,000 risk managers in 167 countries.

Where can I work?

Most of these jobs are likely to be based in the major financial capitals of the world. In the UK this means in London, Bristol, Cardiff and Edinburgh.

Internal auditors have a very varied workload. According to the Institute of Internal Auditors, “There are usually extensive opportunities to travel domestically and overseas. It is a great profession for people who enjoy doing new things, want to work with other people and don’t like being chained to a desk.”

What do employers look for?

According to the Institute of Risk Management, successful risk managers need to be:

Good communicators
Friendly and persuasive
Analytical and numerate
Patient and persistent
IT savvy

To work in Internal Audit you must:

have sound commercial awareness
enjoy working with people at all different levels of the organisation
have strong communication skills, both written and oral
be able to interpret figures and statistics
have strong analytical and problem solving skills
be able to work as part of a team or alone
have a flexible approach to work
be able to work to tight deadlines and under pressure to deliver results
be able to multi-task and prioritise
be able to use their initiative
be able to use a range of computer packages

and should:

be ambitious, energetic and ready for a challenge
have an enquiring mind
enjoy working with figures and statistical data
understand organisational structure
have a commercial focus
(*Source: IIA)

A typical administrator’s job in a pension scheme would ask for:

Strong communication skills, both written and oral
Good time management skills and the ability to organise and prioritise own workload
Able to work to a high level of accuracy
Computer literate
Excellent customer service skills
GCSE at Grade C in Maths and English (or equivalent)