Logic's “2004 Risk Management Compensation Survey,” co-sponsored by National Underwriter, found that among the risk managers surveyed, very few have law degrees, despite the fact that insurance policies are contracts and claims often involve litigation.

However, Mr. Perry said this is not a surprise, given the evolution of the profession into high finance.

“Many years ago, risk managers were usually insurance buyers and claims processors, so it was more of a lawyer's function. Some reported to the general counsel at their firms rather than the CFO,” he recalled.

“But with the growth of the profession over the years, now it's clearly a treasury and finance position,” he added. “You'd rather have a risk manager with an MBA in finance than one with a law degree. You hire lawyers to handle litigation–you don't need a lawyer as your risk manager.”

However, the survey found that while virtually all risk managers have at least a BA degree, not all have earned an MBA. In fact, even at the largest firms, no more than two-thirds possess an advanced degree, while only 30 percent of risk managers at the smallest-size firm category have an MBA.

The number of those with an Associate in Risk Management (ARM) designation is also far from an overwhelming majority. Only two of the eight categories surveyed show over half of the respondents with ARMs.

“There's definitely room for risk managers to grow here,” said Mr. Perry. “The better educated you are, the better chance you have of moving up the ladder to bigger firms that pay higher compensation.”