- Does money excite you?
- Is crunching numbers your thing?
- Do you like the high stakes game of risk and rewards?
- Are you looking to enter the risk management domain?
If so, a career in financial risk management is the ideal choice. However, becoming a financial risk manager is no walk in the park.
- You need to get accredited by the Global Association of Risk Professionals (GARP).
- You need extensive training to clear the FRM examination.
- And most of all, you need the experience to become a thriving one.
Don’t get overwhelmed by the best online course in finance or certifications you need to add to your kitty or the extensive training and experience you need. Yes, it is a lot of work. However, if hard work is what you are afraid of, you might as well give up on any career.
But if you’ve made up your mind, let’s help you discover the pathway to becoming a thriving financial risk manager.
Starting Your Financial Risk Manager Journey
1. FRM (Financial Risk Manager) Training
Broadly, financial risk management is the process through which a firm’s economic value is protected using different financial models to reduce and mitigate risk exposure. And since there are various types of risk you need to mitigate as a financial risk manager; you need to undergo extensive training.
There are two levels of examinations you must clear. And the certification you gain after clearing these exams is considered a strong credential in the field of financial risk management.
What do you need to study? What are the requirements to become a financial risk manager? Let’s find out.
FRM Certification Requirements
- You need to clear both parts of the FRM exam.
- You need to work in the field of FRM for at least 2 years
- You need to submit the work experience to GARP within 5 years of clearing the FRM part 2 exam.
Exam topics you’ll be required to cover thoroughly include:-
According to the GARP website, you need to cover these 10 key exam topics when studying for FRM:-
- Foundations of Risk Management
- Quantitative Analysis
- Financial Market & Products
- Valuation & Risk Models
- 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
- Current Issues in Financial Markets
There are several online finance courses and training that can help you prepare for these examinations. So scout the internet for the best online course in finance and enrol yourself TODAY!
1. Get Two Years of Experience
Experience is the next step in becoming a certified financial risk manager.
You need to demonstrate that you’ve at least two years of full-time work experience in the field. Only finance-related jobs are considered acceptable work experience. So, once you’ve acquired the necessary certification, you can get an entry-level job.
There are approximately 190 countries all over the globe that employ financial risk managers. So based on your knowledge and skills, you can land a high paying job at some of the top companies or banks.
Below are the most common job roles you can land after pursuing the best online course in finance and gaining your FRM certification:-
- Risk analyst or risk manager
- Credit risk analyst
- Market risk analyst
- Operational risk manager
2. Pursue an Online Course in Finance
If you strive to advance your career in a specialised field like investment banking, private equity, FP&A, or corporate development, you must consider enrolling for a credible online course in finance. One such online credible course you can rely on is the financial analytics XLRI program.
Offered in collaboration with Talentedge, the financial analytics XLRI certification program can not only provide exposure to every facet of financial risk management and its techniques but also the emerging trends in finance. This can help you stay abreast of any new trends that are about to hit the market and may affect your organisation.
The financial analytics XLRI certification course helps you:-
- Build successful financial models using analytics
- Learn powerful tools like R and Python
- Explore modelling stock prices using machine learning
- Learn practical applications related to financial analytics
- Gain hands-on experience in exploratory data analysis in finance
1. Possess The Right Skillset
Skillset Required to Become an In-demand Financial Risk Manager
Becoming a financial risk manager is no walk in the park. Apart from prowess in managing financial risks and advanced knowledge in the domain, you need to have a strong skill set. Some of these skills include:-
- Analytical Skills
- Quantitative Risk Management Skills
- Technical Skills like Finance Modeling and Statistical Skill
- Endurance to Regulation
- Soft Skills like Communication, Negotiation, Leadership
- Ability to Work Under Pressure
- Planning and Organisational Skills
- Strategic Business Expertise
- Strong Financial Acumen
By providing hands-on theoretical and practical knowledge in the domain, the financial analytics XLRI program from Talentedge can help you hone these skills.
Industries Employing Certified FRM’s
FRMs have the ability to work remotely from anywhere using their certification, which is why organisations, financial institutions, and corporate firms all over the world are hiring FRMs to help them mitigate financial risk. Most common industries employing certified FRMs include:-
- Investment banks
- Asset management firms
- Corporations (including non-financial corporations)
- Consulting firms
- Hedge funds
- Insurance firms
- Credit agencies
- Government/regulatory agencies
- Risk and technology vendors
FRM has a lot of career opportunities to offer, the most common of these include:-
- Risk Analyst
- Risk Manager
- Credit Risk Analyst
- Market Risk Analyst
- Regulatory Risk Analyst
- Operational Risk Manager
- Chief Risk Officer
These are the typical job roles you can land after pursuing the best online course in finance and gaining your certification from GARP.
To Sum it Up
Apart from getting certified by GARP, you must also consider enrolling for an applied financial risk management course. These courses can help you upskill and advance your knowledge in the domain. This is why an accredited financial risk management training is essential for career progression. One such online certification you can rely on is the financial analytics XLRI certification. Offered on the Talentedge platform, this certification is considered to be the best in its class due to its unique LIVE & interactive pedagogy, extensive curriculum, and of course, the eminent faculty of XLRI that delivers the course online.