Finance plays a major role in the functioning and the performance of organization and top level business. The way finance and its management plays part, it stands as one of the much needed impetus for the growth and the ongoing of the company’s alleviation. There are people who are trained or skilled in these forms of financial management who tend to advise and help the company in its growth.
These people tend to learn through courses and academic qualification which allows them to reach out to the help of company in form of major roles in decision making and more. When it comes to commerce and finance, there is quite a scope ahead when it comes to career line. We have long talked about the different paths that one may take along when they go into the field of commerce subjects.
Financial Risk Manager or FRM as we shortly acronym it for is one such course that is part of the leading qualification in these field. It is one of the most leading certificates for risk management and allows a person to gain insights into the finance. We here look into details about FRM course and outline the course eligibility, syllabus and much more. Read along.
What is Financial Risk Manager?
Table of Contents
- What is Financial Risk Manager?
- How can you become an FRM?
- What is the eligibility criteria of FRM?
- Course details of FRM
- What is the exam dates for FRM?
- What is the exam pattern for FRM?
- What is the cost of FRM certificate?
- When will the results come of FRM?
- Maintenance of Certificate
- What is the salary for an FRM certificate holder?
Financial Risk Manager or FRM is a certification that is provided by the GARP or Global Association of Risk Professionals. This course can be taken across online and is provided at over 100 test cities all across the globe. This course is considered as one of the top level and best finance based courses that a person can take.
This is basically a certificate based course which is offered on two fold basis as Part I and Part II. This course is taken by many people who want to build a career in financial risk management field. It is a career enhancing option that many people who have even undergone major courses in accountancy and finance go for. This course enhances the potential of a person to go and grab the learning basis that will help impart the genesis for grabbing the market trend and other features that will help keep them afloat on the scene.
And when it comes to salary and other aspects not much course can come near FRM as it holds one of the best ROI based courses and is known for its high value orientation and salary payout once you complete this course. This course also allows you to get considered for many sought after positions and you can apply for the top line jobs with ease.
How can you become an FRM?
FRM course is offered by GARP and is available across for all students who wants to go for it. They can simply go for this course and obtain good backing and reach out to maximum levels of financial knowledge. This course is offered at more than 100 test centers and is very much a good choice to make for. This course has two parts and any student who wants to take on this course needs to get admission in the Part I and then go for the Part II. Once they clear it out, they can get the degree of FRM.
We will list the certification process in a step wise basis down below with further details.
Certification process of FRM
The candidates should follow this step wise policy chart to obtain the FRM certification and behold the degree of it. Read along.
- The start requires a candidate to get admission in the course of Financial Risk Manager offered by GARP and they need to start with the Part I level. The candidate should start with a new candidate option and then they can create a registration ID and then pay the fees for the FRM.
- After that the candidate can access their account on the GARP and then see when their test will be scheduled.
- A candidate can choose from a number of more than 100 test centers where they find it suitable to go with and then they can go for this course.
- After that the study material and any other reference, guides, official books, sample papers and all can be accessed online through the portal. If you want the books to reach your place then you need to do additional payment and then you can get the books. That will add the fees on your part.
- The candidate should first go for the Part I course and then complete it and then go for the Part II course. If anyone has chosen both the parts then only Part I will be counted towards the marks and not the Part II unless he has cleared the Part I.
- Once you have completed the Part I of the course, then you have 4 years period to complete the Part II so that you become an FRM degree holder.
- After that the candidate needs to showcase at least 2 years of full time work to the FRM body within 5 years of passing the Part II exams.
- The candidates will get the degree only when they showcase the required levels of work experience. After that they can become certified FRM certificate holder.
What is the eligibility criteria of FRM?
There is a set of eligibility that is required for a person to partake in the FRM exams. They need to b attuned to those qualification norms. We here look to ascertain and list those eligibility criteria for a person who wants to go for the FRM course.
- A candidate should hold a professional degree or a graduate degree in the similar domain to partake in the FRM course and they should also have work experience in the field.
- They need to do admission for the Part I at first and then when they pass that they can go for the Part II ones. They need to complete both the parts within the predefined time limit.
- The candidate needs to obtain the required work experience throughout so that they can get the certificate of themselves done.
- The candidate before enrolling and even during the course needs to have a knowledge of financial risk management and more.
Course details of FRM
As we aforementioned there are two different stages of FRM as:
- Part I
- Part II
Here’s detailed subjects of both the parts down below.
Part I subjects
- Foundations of Risk Management(FRM)
- Quantitative Analysis(QA)
- Financial Markets and Products(FMP)
- Valuation and Risk Models(VRM)
Part II Subjects
- Market Risk Measurement and Management (MR)
- Credit Risk Measurement and Management(CR)
- Operational and Integrated Risk Management(OR)
- Risk Management and Investment Management(IM)
- Current Issues in Financial Markets (CI)
What is the exam dates for FRM?
FRM exams are held twice a year and anyone who wants to participate for the degree can go on to give the exams and earn the required degree. The exams are normally held during the month of May and November. Normally the registration for the exams begin around 4-5 months before the exam and then the candidates can go on to give the exams.
What is the exam pattern for FRM?
FRM exam pattern constitutes of over 4 hours and in this multiple choice based questions are asked mainly. A person needs to appear for the exams and provide the correct answers to it. The Part I of the course looks at the tools that are used as part of assessing the financial risk where the major emphasis is on the fundamental risk management, quantitative analysis and other financial market and products. The other type Part II sees as use of current market issues, investment management, credit and operational risk management and more.
What is the cost of FRM certificate?
FRM certificate total costs comprises of exam fees, enrollment based fees and membership fees. Furthermore, if you incur the order for books and study material then that expenses will also be added on. The fees for further exams for first time students and the recurring students are also set at different rates.
The rate for enrollment or admission as u say is $400 per new student. Like for the Part I course, for exams. the new student has to pay $350 if they do the enrollment on time and then $475 on a standard rate and if they are late then they have to pay $650. Later on when the membership comes, the membership fees is at $195 for individual members.
When will the results come of FRM?
The results for FRM is notified to the students after six weeks on an approximate from the date of exam. The result will contain pass or fail only and their will be a quarterly ranking for it. There will be no numerical value in it.
Maintenance of Certificate
Initially the certificate awarded is only valid for 2 years so any person who wants to maintain their certificate and go on to have a good career needs to continue their personal development. The person needs to document at least 40 credits of CPD, i.e. Continuing Professional Development in every two year period.
What is the salary for an FRM certificate holder?
The salary for an FRM certificate holder is quite high and is in the bracket of CFA, CA and other fields like CMA. A person can get anywhere between 7 to 21 lacs per annum for the jobs. A person who has qualified as FRM can get into jobs like that of risk manager, business analyst, VP market risk, and much more distinguished profile.
So this is what FRM course is all about. We hope you liked this details, eligibility, fees and all other information with this one. FRM is a great course to go for and will increase the earning levels and career of a candidate to greater heights.