Financial Risk Manager (FRM) is a professional designation offered by the Global Association of Risk Professionals, commonly known as GARP. It is globally recognized as a premium certification for financial risk professionals and for individuals who want a specialized knowledge in assessing financial risks on behalf of banks, insurance companies, accounting firms, regulatory agencies, and asset management firms.
Financial Risk Managers perform an array of functions connected with risk management in the market as well as non-market related financial firms.
They must possess an understanding of the state of affairs of both market and industry. They usually work under massive pressure and undertake great monetary transactions.
Don’t get intimidated by this and read on to know more about what it means to be a Financial Risk Manager.
WHY BE A FINANCIAL RISK MANAGER?
Sets You Apart
This certification sets you apart from your peers and gives you a competitive advantage. You stand out to employees and get better job prospects.
Knowledge and expertise
You gain a strong understanding of underlying risk management in today’s ever-changing financial markets. Your knowledge and expertise of the global marketplace also set you apart.
With this certification, your career gets accelerated irrespective of your educational background. Once you achieve an FRM credential, it will do the talking for you.
It provides you with an opportunity to build a global network where you connect with the world’s prominent financial risk management professionals.
FRM is a reputed certification and is a great value addition to your already existing skill set as well as your credentials and resume. It enhances your overall reputation.
It gives you credibility. If you are working hard, it will show. You can confirm your achievements through real-world experience.
HOW CAN YOU BECOME A FINANCIAL RISK MANAGER?
Anyone can register to be a Financial Risk Manager. An FRM certification is awarded after the candidates pass two rigorous multiple choice exams: FRM Exam Part I, and FRM Exam Part II. These exams are held in May and November each year at over 100 different global locations and are offered only in the English language.
Candidates are advised to devote a minimum of 200 to 240 hours of study for each part.
FRM Exam Part I
The Part I Exam is the first step to become a certified FRM. It is always conducted in the morning. Candidates have to solve 100 multiple choice questions within 4 hours. It covers topics including Foundation of Risk Management, Quantitative Analysis, Financial Markets & Products, Valuation and Risk Models.
This part tests the knowledge of tools used to assess financial risks and focuses on essential tools and concepts required to assess financial risks.
FRM Exam Part II
This Part is always conducted in the afternoon for the convenience of candidates who are taking both of the exams in a single day. Candidates have to answer 80 multiple choice questions within four hours. This Part expects the candidates to apply their Part I knowledge to market, audit, operational and integrated risk management issues.
The topics covered under this Part are – Market Risk Measurement & Management, Credit Risk Measurement & Management, Operational & Integrated Risk Management, Risk Management in Investment Management, and Current Issues in Financial Markets.
Candidates can appear for Part II only after passing Part I. For the candidates who appear for both the exams on a single day, there Part II copies won’t be graded unless they pass Part I.
Apart from passing these exams, candidates are also required to demonstrate two years of work experience in financial risk management.
Cost ranges from USD 750 to USD 1050 for each part based on when you register. A part of this fee also covers the $400 enrolment fee
AVERAGE SALARY RANGE
It depends on a number of factors such as level of experience and academic qualification.
In USA: $ 100,000 to $ 250,000 + other perks such as pension, insurance, paid vacations etc.
In India: Around 9 lakhs
Examination Date: 18 May 2019
Last date for early registration (November): 31 July 2019
Last date for Standard registration (November): 30 August 2019
Last date for late registration (November): 15 October 2019
Examination date: 10 November 2019
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Picture Credit: Masquet