To earn the FRM certification, candidates have to:
- Pass the FRM exam Part I
- Pass FRM exam Part II within 4 years of passing the Part I examinations.
- Gain a work experience of 2 years in a professional full-time financial risk management job role.
- Gather Continuing Professional Development (CPD) credits of 40 hours every 2 years.
Requirements related to the work experience:
- Once the candidate has gathered the required work experience, then he/ she has to upload a description of the work done to GARP by writing at least 4 to 5 sentences and uploading it in the “My Programs” section in the candidates account on the website.
- Candidates must submit the work experience details within 5 years of passing the Part II of the FRM examinations.
- This experience cannot be of more than 10 years prior to passing the Part II of the examinations.
- Any experience gathered as a professional, academic teacher or researcher in areas related to financial risk management is considered as a valid and relevant work experience for the purpose of granting the FRM certificate.
Companies Looking For FRM Holders
In the recent years, the financial world has become more complex than ever and the requirement for professionals who understand and can assess and measure risk has gone up significantly. They need Financial Risk Managers more than ever.
Thus, they look for FRM certified professionals to fill up important positions in their companies, and regularly recruit fresh as well as experience FRM candidates.
As per GARP, the top 10 companies employing the most FRMs* are:
Bank of China
Agricultural Bank of China
The following are the top 10 global banks which employ FRM:
- China Construction Bank
- Agricultural Bank of China
- Bank of China
- JP Morgan Chase
- Wells Fargo
- Bank of America
- Banco Santander
Financial Risk Managers are in high demand in various financial services companies across the world, and not surprisingly they play a critical role in various organizations that need to manage risk effectively. The Financial Risk Managers are expected to be experts in risk management techniques, Market risk measurement credit risk monitoring, operational and integrated risk management and many others areas. They are indispensable to their companies, and hence, are some of the most sought after professionals in the finance industry.
The Salaries that FRM certificate holders get are very attractive. As per payscale.com, the average salary drawn by a risk manager starts from Rs. 9,50,000 and can go up to Rs. 28, 00,000.
Glassdoor.com reports that In the USA , the salaries range from $69,000 to $167023 per year. The FRM certified professionals occupy various positions like risk manager, risk management consultant, Senior Business Analyst, risk analyst and Associate vice president market risk in the companies.