Why Pursue the FRM® Designation?

By: Kaplan Schweser
January 14, 2021
Person using an iPad is learning the advantages to pursuing the FRM designation

Are you interested in analyzing risk and figuring out ways to minimize it in a company or portfolio? Or perhaps you’ve already decided you want a career in financial risk management. If so, you should consider becoming a certified Financial Risk Manager (FRM®). Here are three excellent reasons why.

1. FRM® certification can help you differentiate yourself.

With the FRM designation, you have a credential that can set you apart in the financial services industry. As the need for financial risk management professionals continues to grow, someone with the FRM designation is seen as having attained the “gold standard” of the industry. Many of the top financial firms employ risk management professionals who have the FRM certification.

Why do these firms look for finance professionals with the FRM designation? Mainly because they have specific qualities that are important to financial services providers. Risk management is a different way of approaching financial decision-making. The FRM Program teaches you how to better identify and allocate potential risks, mitigate them, provide recommendations for better decisions in regard to all risks, and make a risk management plan.

The program also helps you improve how you prioritize risks, ensure they are aggressively and cost-effectively managed, and provide directions and recommendations on issues that are critical for success. This new mindset and process of assessing risks, developing a response to risks, and creating a contingency plan for future risk prevention will make you an asset to most financial services firms.

Considering earning the FRM designation? Download the free eBook Before You Sit for the FRM® Exam, for advice from successful FRM professionals.

2. The FRM® designation can boost your career opportunities.

The FRM designation can help you get where you want to go in your career. Since the FRM Program began in 1997, its popularity has grown, and enrollments increase every year. Those with the FRM designation typically hold managerial and executive-level positions that concentrate on risk and investment risk.

These financial management positions, including financial risk manager positions, 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.

So, if you’re interested in a good salary as a credit risk manager, market risk manager, regulatory risk manager, operational risk manager, or risk executive, then the FRM designation can help you get there. As the field’s leading designation, the FRM certification is the easiest way for firms to identify candidates with proven ability and experience. After all, earning the credential isn’t easy.

You have to pass a series of difficult exams and spend at least two years working in the field. The FRM certification tells employers that you can identify, analyze, and mitigate risk at a high level, thereby adding value to a firm in a number of specialized areas.

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3. You can grow your global networking connections.

Global acceptance of the FRM Program has increased. In fact, it has experienced a compound annual growth rate of 29% in total registrants in the last eight years. Therefore, anyone who becomes one of over 32,000 global FRM certification holders can tap into a wide network of experts. Connecting with them can lead to a broader understanding of the global financial markets.

You also get first-hand exposure to industry insights and trends, an opportunity to increase your technical know-how, and awareness of forthcoming developments that could impact your career.

Ready to learn more about earning the FRM® designation

If the benefits of pursuing this globally recognized certification appeal to you, check out this article about how to become a Financial Risk Manager. When you’re ready to earn the designation, Kaplan Schweser has FRM exam prep packages to increase your odds of success.


Ready to enroll in FRM Exam prep? Choose from Kaplan Schweser’s FRM study package options now.

FREE eBook—Before You Decide to Sit for the FRM® Exam

Free eBook—SchweserNotes™: FRM® Foundations

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