Posted By: Kaplan Schweser
Published: March 26, 2019
If you’re considering a career in finance or risk, it’s a credential that might interest you because it can set you apart in the financial services industry. In this article, you’ll learn exactly what the FRM® designation is, what a financial risk manager does, how you can become a Certified FRM, and what you can do with the designation.
Offered by the Global Association of Risk Professionals™ (GARP®), the FRM designation is a financial risk management certification you can earn. Many of the top financial firms employ Certified FRMs because they are seen as having attained the “gold standard” of the industry. The FRM designation indicates that you have a strong understanding of the underlying risk management concepts in today’s ever-changing financial markets. It also lets employers know that you take risk management seriously, and that your knowledge has been validated by international professional standards. In addition, you have to pass the FRM Exam, which also demonstrates your expertise.
A financial risk manager identifies and analyzes threats to the assets, earning capacity, or success of a business. Financial risk managers work in sales, loan origination, trading, marketing, financial services, or private banking. Many specialize in areas like credit or market risk. They analyze data, financial markets, and world events to forecast changes and trends that can impact a business and suggest or implement strategies for protection.
Not all financial risk managers have earned the FRM designation. To earn the designation, you must complete the FRM Program administered by GARP.
For anyone who wants to be a financial risk manager, the future is bright. Positions in risk management are expected to grow at a rate of 7% over the next decade. In addition, the salaries for these positions are quite encouraging. According to PayScale and other sites, salaries can range from $55,000 to $150,000 annually.
To earn your FRM designation, you must:
In our article about how to earn the FRM designation, you can take a closer look at the requirements.
Those who earn the FRM designation typically hold positions that concentrate on analyzing and measuring risk. These are some of the most common job roles for Certified FRMs:
Although an FRM designation is no guarantee you’ll land a management position or a spot in the C-suite, a significant percentage of Certified FRMs have worked their way up to these levels. You can explore these positions in more detail in this article covering what you can do with the FRM designation.
If you’re wondering if earning the FRM designation is right for you, check out these reasons why you should. When you’re ready to get started, Kaplan Schweser has exam prep packages to increase your odds of success!