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Arguably, there are three different risks facing all financial institutions: risk that can be avoided, transferred, and managed. First, risk can be avoided by employing simple business protocols like standardizing processes and contracts to eliminate inefficiencies. Maintaining a diversified portfolio and holding employees accountable for their actions are two other ways of minimizing a firm's risk. When risk cannot be transferred to other institutions or interest rate products, commercial banks manage risk that by implementing standards, position limits and rules, investment guidelines, and incentive contracts.

All commercial banks now employ risk management analysts, who are responsible for analyzing data to assess growth, minimize credit risk, operating losses, and other risk exposures. Analysts also develop sophisticated models and analyze economic and sociological trends to recommend strategies. Commercial banks typically prefer an analyst with a master's degree or at least several years of commensurate consumer finance experience. Analysts must have a bachelor's degree in accounting, finance, statistics, or math. Knowledge of risk management software is also preferred. Online salary surveys show risk management analysts and consultants make on average between $58,000 and $70,000, and director level positions on average net around $115,000.

According to financial services firm Towers Perrin, due to the current economic crisis, 55 percent of CFOs surveyed planned to put their risk management departments under the microscope and reassess their practices. It has been reported that those in financial circles say too much reliance was placed on VaR, since this model failed to factor in the possibility of the biggest risk of all a complete financial meltdown. New models will need to be developed based on current data, and that's all the more reason why risk management will continue to be an exciting and ever changing field.