FRM Salary

The Financial Risk Manager exam is a globally acknowledged designation awarded by the Global Association of Risk Professionals (GARP), equipping professionals with financial risk assessment and management skills. The primary focus of FRM is helping professionals to be aware of the principles of managing market risk, credit risk, and liquidity risk along with non-market financial risks. FRMs constitute an exclusive global community of nearly 30,000-dedicated GARP professionals, most of them working with several top employers in the financial industry. In addition, FRM-qualified professionals usually provided much better compensation than their non-credentialed counterparts, adding value to the designation.

Exhaustive information is readily available about the prerequisites, exam details, and exam preparation strategies for FRM. However, there is scarce information on salary packages, bonuses, and overall trends related to financial compensation for FRM-qualified professionals. Therefore, in this article, we have solely discussed the monetary prize for the benefit of the readers.

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  • Significance of FRM CertificationAverage FRM Salaries in the USAverage FRM Salaries in the UKAverage FRM Salaries in SingaporeAverage FRM Salaries in IndiaFamous Career Roles for FRM ProfessionalsWhat Kind of Employers Look for FRM ProfessionalsTop FRM Employing IndustriesTop FRM Employers Across IndustriesHow Can FRM Salary-Related Information be Useful for Professionals?

Significance of FRM Certification

Though we have already provided information in brief on FRM, it is essential to look at the significance of this designation to know how well it helps shape a financial career that ultimately decides what compensation one receives. FRM is a highly specialized risk management designation that helps acquire the necessary skills and knowledge in specific areas. This technical nature of the title makes it a potentially rewarding work designation considering financial growth.

Average FRM Certification Salaries in the US

The average salary for a financial risk manager is $102,393 in the US.

source: Payscale

FRM Salary Ranges by Career Role in the US:

  • Risk Analyst: Average annual salary stands at $78,000Credit Risk Manager: Average annual salary – $93,000Vice President, Finance: Average annual salary – $128,000Quantitative Analyst: Average annual salary – $98,000Financial Analyst: Average annual salary – $59,000Chief Risk Officer (CRO): Average annual salary – $200,000

Average FRM Salaries in the UK

The average wages for financial risk managers in the UK are £62,149.

FRM Certification Salary Ranges by Career Role in the UK:

  • Risk Manager: Average annual salary stands at £56,000Risk Analyst: Average annual salary – £40,000Credit Risk Manager: Average annual salary – £65,000Quantitative Analyst: £63,000Risk Management Analyst: £46,000Chief Risk Officer (CRO): £126,000

Average FRM Salaries in Singapore

The average salary for a financial risk manager in Singapore is S$95,394.

FRM Salary Ranges by Career Role in Singapore:

  • Risk Manager: Average annual salary stands at S$113,000Risk Analyst: Average annual salary – S$45,200Credit Analyst: S$65,200Quantitative Analyst, Risk: S$85,000Business Analyst, Finance/Banking: S$78,000Credit Risk Analyst: S$69,000

Average FRM Salaries in India

The average salary for a financial risk manager in India is ₹1,174,397.

FRM Certification Salary Ranges by Career Role in India:

  • Risk Analyst: Average annual salary – ₹5,90,000Senior Risk Manager: Average annual salary stands at ₹20,00,000Risk Manager: Average annual salary stands at ₹10,00,000Credit Analyst: Average annual salary stands at ₹8,00,000Credit Manager: Average annual salary stands at ₹8,60,000Chartered Financial Analyst (CFA): ₹ 7,00,000

Geographically, FRM-certified professionals might explore the best professional growth opportunities in the US, UK, Hong Kong, Singapore, China, and other locations. For example, it may not be easy to identify the compensation a financial risk manager earns as it depends on various relevant factors, including the financial riskFinancial RiskFinancial risk refers to the risk of losing funds and assets with the possibility of not being able to pay off the debt taken from creditors, banks and financial institutions. A firm may face this due to incompetent business decisions and practices, eventually leading to bankruptcy.read more manager’s industry experience. Academics also play a role in deciding the earnings of a professional.

Comparing the FRM certification salary from Indeed.com provides us the different figures. The compensation can vary in the average salary for the job that matches the keyword “FRM.” That means that these are salaries offered for new job posts, not risks managers earn in their current careers.

Other factors that might influence remuneration could include geographical location and an employer’s size, among other things.

Famous Career Roles for FRM Professionals

Some prominent roles fit FRM certified professionals, including specialized financial managers, financial analysts, or related career positions.

These roles are: –

  • Financial Manager.Risk Qualification Manager.Corporate Risk Director.Risk Management Analytics Consultant.Regulatory Risk Analyst.Analytics Client Consultant.Operational Risk Analyst.Credit Risk Specialist.Enterprise Risk Manager.Large Enterprise Commercial Risk Manager.

Each career role offers varied work opportunities, remuneration, and growth prospects, which differ significantly. That majorly depends on the employer and the growth prospects available to an individual. Next, let us understand what employers root for FRM-certified professionals and why.

What Kind of Employers Look for FRM Professionals

As we have already discussed, FRM is more of a specialized certification, aimed at helping professionals acquire an in-depth understanding of financial institutionsFinancial InstitutionsFinancial institutions refer to those organizations which provide business services and products related to financial or monetary transactions to their clients. Some of these are banks, NBFCs, investment companies, brokerage firms, insurance companies and trust corporations. read more. A firm may face this due to incompetent business decisions and practices, eventually leading to bankruptcy.” url=”https://www.wallstreetmojo.com/financial-risk/”]various forms of financial risks[/wsm-tooltip], including potential credit riskCredit RiskCredit risk is the probability of a loss owing to the borrower’s failure to repay the loan or meet debt obligations. It refers to the possibility that the lender may not receive the debt’s principal and an interest component, resulting in interrupted cash flow and increased cost of collection.read more, operational risk, liquidity riskLiquidity RiskLiquidity risk refers to ‘Cash Crunch’ for a temporary or short-term period and such situations are generally detrimental to any business or profit-making organization. Consequently, the business house ends up with negative working capital in most of the cases.read more, market risk, and non-market financial risks. One must remember that financial institutions and banks deal with these troubles regularly, which is why they are always looking to hire professionals with the requisite knowledge and skill set, and preferably FRM, a risk management credential. Moreover, risk management has acquired a whole new meaning in the post-2008 era on a broader level. As a result, banks and financial institutions realized things might rebound despite the best financial management capabilities and underlying risks needing to be managed with a higher level of finesse.

Unsurprisingly, banks and financial institutions are almost forced to reassess their priorities and give risk management its rightful place under the sun. As a result, the demand for risk management professionals is rising, and most high-profile employers prefer to hire accredited professionals. That is because they enjoy a higher level of credibility in their eyes. FRM is a specialized credential whose value has naturally gone up with time. Some of the top employers for FRM include asset managementAsset ManagementAsset management is a method of managing funds and investing in both traditional and specialized products in order to generate returns consistent with the investor’s risk tolerance. read more firms, investment banks, government agencies, corporations, global financial services firms, and auditing firms.

Top FRM Employing Industries

Here is a list of the leading industries which employ FRM certified professionals: –

  • Investment BanksCommercial BanksCentral Banks of CountriesAsset Management CompaniesAsset Management CompaniesAn Asset Management Company (AMC) refers to a fund house, which pools money from various sources and invests the same in purchasing capital on behalf of their investors.read moreInsurance CompaniesCredit Rating CompaniesGovernment and Regulatory AgenciesConsulting FirmsHedge FundsHedge FundsA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.read moreProfessional Service Firms

Top FRM Employers Across Industries 

The top employers from different industries regularly employ FRM-certified professionals for their risk management capabilities are:-

FRM certified also recruited by top Global Professional Service Firms including PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young, and KPMG.

FRM offers some of the most pleasing career prospects and growth opportunities immense depending on the skillset, knowledge, academics, and professional experience of a professional.

The most critical question is how to utilize the FRM salary information for professionals made available here or elsewhere. The whole point of the discussion is that before choosing FRM as a certification program, it is essential to understand what career prospects might offer. Significantly, if one has planned the career role, they are preparing; this specific information can help decide: If FRM is a suitable choice of certification to prepare for a particular position or career and what sort of remunerationRemunerationRemuneration refers to overall monetary and non-monetary compensation that employees or independent contractors receive for providing services to an organization or company.read more one might expect on completion of the certification program. These can be useful pointers and directly impact the choice of career path and certification, which usually go hand in hand.

In general, higher academics and a fair amount of professional work experience are prerequisites for a successful career in financial risk management and related roles after completing FRM.

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