If you are interested in analyzing risk, ascertaining ways to minimize it in a company or portfolio and have decided to pursue a career in risk management, then you should consider obtaining FRM certification. As the finance industry is becoming increasingly competitive, professionals progress by keeping themselves equipped with the latest trends and skills. Certifications like FRM help finance professionals to ensure that their knowledge and skills are up to the latest international trends.
Here are some of the excellent reasons to enroll yourself for the FRM exam:
The need for financial risk management is growing in the industry and therefore individuals with FRM certification are employed by many of the top financial services firms of the world. The program enables you to create an aggressive and cost-effective risk management plan with better identification and efficient mitigation of various types of risks. People from other domains who are interested in switching to Risk management field often pursue FRM exam. Clearing FRM exam indicates commitment and knowledge to deal with critical risk issues and makes your CV more attractive to the employers.
FRM certification offers a wide network of over 50,000 certification holders. You can connect with the elite network of expert risk professionals for better industry trends and insights. The FRM certification is well-known in over 90 countries. The certification indicates proficiency of the holder to manage risk in a global environment.
FRM exam consists of practical questions on the application of various risk management tools and techniques in the investment management process. Candidates are tested on their ability to apply the technical knowledge to real-world work experiences. FRM certification enhances knowledge of quantitative analysis, fundamental risk management concepts, financial markets and products, and risk models.
FRM is the most popular certification in the field of risk management. It opens door to various managerial and executive level positions like Chief Risk Officer, Risk Manager, Credit and Market Risk Analyst, Risk Management Analytics Consultant, Regulatory Risk Analyst. FRM can enhance your profile for various risk management roles of top financial firms worldwide. It can also enhance your remuneration structure. Employment opportunities of FRMs are expected to grow at 16% from 2018 to 2028. Some of the common job functions after getting FRM certified are:
FRM program has only two levels and are conducted twice every year. Passing the exam and obtaining certificate takes much less time than completing a master’s degree in finance. You also do not need to leave your job and hence lose out on salary to pursue FRM. FRM exam can be cleared with part time study according to a strategic preparation plan.
Step 1: Register to take the exam
Register on www.garp.org and start preparing for the Part I exam. The examis conducted in May and November every year. For more details about fees, exam syllabus, etc., click here.
Step 2: Pass Part I of FRM exam
Part I of FRM exam comprises of 100 multiple choice questions. It tests you on topics like Foundations of Risk Management, Quantitative Analysis, Financial Markets and Products, Valuation and Risk Models.
Step 3: Register for Part II
Candidates are required to pass Part II within four years of passing Part I.
Step 4: Pass FRM Exam Part II
This part focuses on application of the tools acquired in Part I. FRM Exam Part II consists of 80equally weighted multiple-choice questions. It tests on topics like Market risk measurement and management, Credit risk measurement and management, Operational and integrated risk management, Liquidity and Treasury Risk Measurement and Management, Risk management and investment management, and Current issues in financial markets.
Step 5: Accumulate two years of qualified experience
Candidates must submit details regarding relevant work experience within 5 years of passing FRM Exam Part II. Failure in doing so will require the candidate to re-register for the program and pay require fees to retake both the parts again. The work experience needs to be full-time and related to management of financial risk. Work experience also cannot be more than 10 years prior to having passed the Part I exam.