FRM Ladder to Success
January 2, 2014
The childhood days! Glory days! There was one thing peculiar about my childhood though that I believe many of us must have experienced. And the fear that used to dwell up inside me almost every mid-month was the risk of exhaustion of my pocket money. Although it was enough for me to see through the month, but then when there are two of your best friends’ birthdays lined up, you are bound to run penniless. If this situation prompted you to take some steps and tackle the whole situation while not burning an extra hole in somebody else’s pocket, then you’re at the right place, fella!
The same outlook when nurtured with proper knowledge and skillset can help you develop into a risk manager. The Global Association of Risk Professionals, GARP USA, provides a globally recognized standard for risk professionals. It is FRM i.e. Financial Risk Manager. A certified FRM professional is a member of an elite network and hold key value to top employers around the globe in various industries.
Road to FRM certification
FRM- Rise of a standard
Over the years, the number of candidates enrolling for the FRM program has been on the increase. According to the data provided by GARP, the number of FRM candidates in 2013 was as high as whooping 36,471.
And with the passing rate maintaining its streak at around 50%, it is clear that FRM has been an attraction to many.
|Historical pass rate (%) for FRM Exam (2010-2015)
|FRM Part 1
|FRM Part 2
The craze for FRM is evidently because of the flexibility that it holds for each individual. For instance, if you are already a risk professional, then FRM comes to your aid in two ways. One is that it will advance you in risks involving money and investment. Moreover, it will broaden your skill set as a risk professional. Now for those people who are not risk professionals, then FRM provides them with a perfect pathway to change the career and explore the wonders of risk profession. And for the students, clearing FRM examination is a bonus to their profiles. It is a loud message that you are competent enough to handle any real-life situation. The benefit is best reaped if you are hailing from the finance background.
The highlight of the FRM is that it gives you a distinctive edge from the other risk professionals operating in the money and investment fields. It is a standard so high that every top employer recognizes it and appreciates the FRM certification. The skills that the FRM incorporate in a professional are invaluable and FRM provides you with the state of the art knowledge that is required in the work field on daily basis.
And there is one distinction that sets FRM from any other risk professional course. Financial Risk Manager is the only designation that mandates it to apply the knowledge in the real world experience i.e. it is the only designation that requires professionals to demonstrate 2 year work experience in related field.
Such is the aura of FRM that in 2013, 38 organizations had 100 or more FRM registrations. Also, 923 organizations had 5 or more FRM registrations; number’s been on the rise ever since the very beginning. According to the data by GARP, the numbers have risen as below.
Now many of you might wonder how such a large number of organizations can be represented by FRM registrations. Well, I do not need to mention that FRM has roots in almost every country and the financial world. As a matter of fact in 2013, FRM candidates came from 141 different countries and regions.
Employers for FRM professionals include leading global banks, insurance firms, hedge funds, asset management companies and professional services providers. This goes without saying now that FRM professionals are greatly sought after and for a potential interested candidate with FRM certification in hand, the future is bright.