Risk management has never been so important in the financial services! Finance professionals need to find ways to constantly improve and develop their risk awareness, analysis and management skills, and some choose the FRM to help them to achieve this…

What’s the FRM?

FRM stands for Financial Risk Manager. It’s a professional qualification that you’ll see in areas across the business and finance sector as a whole, though it is perhaps most suited to risk specialists. If you’re keen on risk, then it’s worth a look!

The FRM is an internationally recognised qualification awarded by the Global Association of Risk Professionals (GARP).  The FRM is a possible alternative to the CFA. If you’re torn between the two qualifications, then it’s a good idea to think about your career goals: if you want to reign supreme in risk management, the FRM could be a good option, however the CFA tends to be in more demand from employers for a wider variety of roles.

What will it involve?

You might be relieved to hear that there is just one exam to conquer in the FRM…but it’s a gruelling test of a huge range of potential topics! You’ll need to be dedicated to part-time study to be ready for the challenge.

The exam you’ll have to pass is in two parts. The first part will test your knowledge of financial risk assessment tools, namely quantitative analysis, valuation and risk models, financial risk concepts and financial markets and products. Part two is all about applying your knowledge of these tools.

What will it enable me to do?

If you’re certain that risk is the direction you want to take your career into, then the FRM could be a very good way to flex your risk management prowess on your CV. The prestige of belonging to a global professional body for risk professionals could help you on your way to top jobs within the risk remit.

How do I get the FRM?

It’s most likely you will have to fund yourself to obtain the FRM. At the moment it costs $650 for early registration, $775 for standard, and $950 for late.

There are a limited number of business schools who offer tuition and revision classes in preparation for the FRM exam. There are daytime/evening courses available at Kaplan Financial (in London).

You’ll have to register yourself for the exam.