How to Become a Financial Risk Manager

A Financial Risk Manager (FRM) is a professional who specializes in identifying and handling risks to financial asset management. The classification is granted by the highly respected Global Association of Risk Professionals (GARP), a nonprofit founded in 1996. The GARP sets and maintains standards for risk managers.

Currently, FRMs earn a reported average salary of $109,000 per year, with an expected range of $113,000 to $189,000 annually.

Earned through rigorous training, the prestigious designation of FRM represents the professional’s comprehensive knowledge in this domain. These professionals with this title thus have a more holistic insight into asset management and value preservation.

What Does an FRM Do?

An FRM’s core responsibility is assessing risk to clients’ finances and assets. Their duties include actions such as analyzing investments and mitigating threats to earnings. An FRM’s goal is to evaluate factors that could harm the employer’s or client’s wealth, advising on how to effectively steer clear of negative outcomes.

A financial risk manager will have these critical and coveted skills to provide significant value to organizations and clients. The higher respected credential and rigorous training bestow FRM’s with the ability to bring their exceptional standards to each firm and project.

Who Do FRMs Work For?

A Financial Risk Manager often works for financial organizations, including, but not limited to, banks, credit unions, and trading firms. The FRM’s specialized training offers assurance to both employers and clients, and it is typically necessary for financial services companies to hire FRM’s to conduct operations.

Obtaining your Financial Risk Manager certification opens up a range of career opportunities at a wide range of financial services providers. The most typical employer profile includes banks and investment firms. Your expanding horizons may also include organizations such as loan-origination companies and other diverse options.

How Do You Become an FRM?

Becoming a Financial Risk Manager requires passing the FRM certification offered by GARP. This testing process is segmented into two exams, requiring up to 400 hours of study. Candidates must also demonstrate two years of career experience in the financial services sector. Earning this esteemed classification is a prime way to distinguish yourself in the field.

Is Becoming an FRM Worth Your Time and Effort?

With the FRM certification, you’ll garner instant respect from both employers and clients. In today’s market, there is no better way to gain an edge over your competitors. You’ll also be eligible for more statured positions, years ahead of your peers. The time and effort you place into this certification assures clients and organizations that you are focused on financial stability and overall asset growth.

What to do After Getting Your FRM Certification

You can retain your FRM certification after fulfilling the requirements for the FRM exams and work experience. To maintain a firm grasp of the latest advisories, GARP encourages you to take 40 hours of Continuing Professional Development (CPD).

Do You Need Additional Exams to Work as an FRM?

If you work for a firm focused on investment banking or securities, you will need to go through the FINRA qualification exams. These exams are required for all experts within these fields at financial services firms, including those with the FRM designation.

At Securities Training Corporation, we specialize in offering guidance to financial service providers seeking to pass their FRM exams. We are proud of our proven and trusted process, which enables 95% of our students at Securities Training Corporation to pass on their first try.

Contact us today to learn more about how our solutions can advance your career.

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