If you’re looking to enhance your career in financial services, you’re likely to come across financial risk management.
It’s an exciting new career that is in demand at the moment. If you want to become a top financial risk manager, you need to pursue an FRM certification.
It’s a long process and you are going to wonder if it’s all worth it or not. In that case, keep reading to learn the top benefits of getting an FRM certification.
What Does a Financial Risk Manager Do?
Basically, a financial risk manager assesses risk at an organization. It seems pretty obvious, right? You could work in government organizations, insurance companies, banks, and corporations.
Your day is spent pouring through financial and external economic data to find the risks that may impact your employer. You might have to look through a financial portfolio to discover other types of risks.
If you find potential risks, you can’t just sit on them. You have to report them to your superiors. This may be the Chief Financial Officer at your organization or your entire executive team.
You’ll have to come up with potential solutions to these risks.
Benefits of Becoming FRM Certified
Are you still not convinced that an FRM certification is right for you? Check out some of these amazing benefits to becoming FRM certified.
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1. Salary
There is a lot of blood, sweat, and tears to get certified as a financial risk manager. At the end of that dark tunnel is a lot of green.
The average salary for a financial risk manager tops $100,000 a year. Of course, your actual salary will depend on your location and the type of business you work for.
A large corporation with more at stake will pay much more than a mid-sized business. In either case, a great salary is a top benefit to
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2. Demand
Large companies are hiring financial risk managers. They want to hire the cream of the crop, so they look for FRM certified people to manage the risk at their company.
There are a lot of opportunities once you get certified. You can manage regulatory risk, credit risk, and market risk. These risks may not seem like a lot, but they can seriously make or break a company.
That’s also why companies are willing to pay more for FRM certified individuals.
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3. Access to a Great Network
There are a number of other FRM certified professionals that you can network with. This isn’t a large network, but this is a high-quality, well-connected network.
You can leverage this network to continue to advance your career.
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4. It’s an Impressive Designation
This is more of a vanity benefit, but it still matters when you’re weighing whether or not to pursue an FRM certification.
This certification tells everyone in the industry that you have what it takes to be the best in your field. Think of some elite squad of professionals.
That’s really what an FRM certification is.
Many, many people fail and drop out on the way to get a certification. For one reason or another, they gave up.
You earn that certification and you show that you’re smart, persistent, and you know your risk management work inside and out.
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5. Growth Potential
In any position, you want to be able to see the next step on your career path. With an FRM certification, that’s very possible to do.
You can start off with a job as a Risk Analyst and move to become a Senior Risk Manager and go all the way up to VP of Finance.
How to Get an FRM Certification
It’s hard to not see the benefits of an FRM certification. Here are the steps you need to take to get certified.
The Certifying Body
There’s one organization that oversees the Financial Risk Manager Certification. That’s the Global Association of Risk Professionals (GARP). This is the only organization that’s globally recognized.
Education Requirements
You’d expect to see that you need a Master’s Degree or at least a Bachelor’s Degree to get certified. Your employer is likely to have that requirement.
You just have to have an interest and the endurance to complete the certification.
The Exam
The FRM exam is tough. It’s in two parts taken at separate times. Part I consists of about 100 multiple choice questions to be completed in four hours. It’s not an easy exam, with only 45% of exam takers passing on the first try.
Part II has a passing rate of 55%. This is an 80-question exam that’s completed in about four hours.
Both exams are given by GARP at various locations around the world twice a year.
There’s a lot at stake and you want to be prepared as possible for the exam. You’ll want to take a preparation course and study hard for the exam. You’ll want to make sure you do your homework about the different options and FRM course fees before you sign up.
other valuable tips:
Real-World Experience
Once you pass both parts of the exam, it still doesn’t mean you’re certified. You got over a major obstacle, though.
The last part is to get real-world experience as a financial risk manager. You need to have at least two years of experience as a financial risk professional within 5 years of passing Part I of the exam.
Is an FRM Certification Worth It?
There is a lot that goes into an FRM certification. If you want to become a financial risk manager and advance your career, you have to wonder if it’s worth it or not.
Do you want to be paid more and treated with more respect? Do you want to have an elite network of professionals in your corner? Do you want job security?
Those are just a few things that you’ll get by becoming FRM certified. It’s a long road to get to the certification designation, but in the end, you’ll find that it’s worth it.
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