Posted By: Kaplan Schweser
Published: June 2, 2020
The FRM® designation sets you up well for growth in your career as a finance professional. But what kind of salary can you earn? According to Payscale and Glassdoor, the annual salary for a professional who works in financial risk is anywhere from $44,000 to $128,000. A professional who has earned the FRM designation can expect a salary in the range of $55,000 to $211,000, with managers and senior directors earning more. Let’s look at what the average salary is for some of the most common jobs for those with FRM certification.
Risk analysts use analytical skills and knowledge of international business and currency markets to examine investment portfolios and analyze the risk involved. Glassdoor reports that the average base annual salary for a risk analyst with the FRM designation is $61,833 with an average additional cash compensation of $6,467. Although Glassdoor estimates that the top end of the base salary range is $89,000, a risk analyst in Dallas with 10 years of experience and the FRM mark recently reported a salary of $97,000.
Market risk analysts, also known as market risk managers, use their knowledge of an industry or sector to research market trends and provide companies or investors with a comprehensive market assessment. Zip Recruiter reports that annual salaries for market risk analysts are as high as $144,500 and as low as $56,500, but they usually range between $92,000 and $121,000. According to indeed.com, the average base salary is $93,280.
Regulatory risk analysts study new and proposed laws and regulations to determine how they will apply to their firms and research the impact similar laws have on businesses in other regions, states, or countries. They model various possibilities and recommend or develop ways to ensure compliance. Glassdoor reports that the average annual salary for these risk analysts is $67,021; however, the ads they post show a wide range of salaries from a low of $51,000 to $130,000. Regulatory Risk Managers can earn as much as $209,000.
Risk managers help a business identify and assess potential risks that could affect them in the future. Many are responsible for analyzing investment approaches, including asset allocation, hedge funds, and fixed income. Glassdoor reports that risk managers with the FRM designation can expect to earn a base annual salary of $115,000 to $125,000. According to indeed.com, 68 percent of risk managers in the U.S. think their salaries are appropriate for the cost of living in their area.
Credit risk managers develop and implement policies and procedures that reduce credit risk for a financial institution and manage the process of building financial models that predict credit risk exposure to the organization. Many employers require credit risk managers to earn the FRM designation. The average annual salary is $105,830 as reported by Payscale.
Operational risk managers investigate the way an organization or business is run, look at the big picture, and fix or prepare for anything that might harm the company in the future. The goal is to mitigate as much risk as possible and offset financial losses. Salary.com says that the average annual salary of operational risk managers is $112,759. Zip Recruiter indicates that the salary range is $101,500 to $141,000.
An FRM designation will not necessarily land you in the C-suite. However, there are risk professionals with the FRM certification who have worked their way up to this level. These executives assess and mitigate significant competitive, regulatory, and technological threats to a company’s capital and earnings at the senior executive level. Because they are executives, the way they are compensated can differ from company to company. Therefore, the average annual salary for the position is reported differently by the major job search engines. For example, Salary.com says it is $254,400, Glassdoor reports that it is $195,747, and Payscale records it as $153,550.