Financial risk manager (FRM)
Who is a risk manager?
A risk manager is a professional who identifies risks involved in an investment and also tries to mitigate them, if possible. For instance, a risk manager might look at a bond and spot the possibility of default as a risk thus evaluating the likelihood of that scenario. However, it is sometimes not possible to mitigate the risk. Ion such a situation, the risk managers evaluate how central is the investment to one’s risk tolerance and investment goals. Risk managers, therefore, help the investors in accomplishment of their goals by showing the affect of their investments and looking for ways to alleviate the situation.
What is Financial Risk Manager (FRM)?
The Financial Risk Manager (FRM) certification is an international professional certification put forward by the Global Association of Risk Professionals. The FRM program is a rigorous one and is designed to quantify a candidate’s grasp of the most up-to-date technical and industry knowledge. The successful accomplishment of the course indicates a candidate’s capability of keeping pace with the fast changing financial landscape.
The Financial Risk Manager Designation
The FRM is a certification for qualified risk management professionals, especially those involved in controlling, analyzing, or assessing potential credit risk, liquidity risk, and market risk in addition to non-market related financial risks. The FRM holders carry out wide ranging functions related to risk management within asset management firms, investment banks, and in government and corporation agencies.
The basic requirements to attain a designation as a Financial Risk Manager comprise passing scores on Part I as well as Part II exams in addition to a minimum of two years’ full time work experience in positions related to financial risk management counting risk consulting, portfolio management, and other similar fields.
CurriculumThe FRM curriculum is based on a candidate body of knowledge as stated by the Global Association of Risk Professionals. The FRM Curriculum focuses on practical application of risk management theory thus ensuring the candidates’ firm knowledge about the key areas of the financial risk management. Besides, the FRM syllabus is self-motivated and also changes every year to reflect the fresh events occurring in the global financial markets.
- Debt ratios
- Liquidity ratios
- Profitability ratios
- Asset management ratios
- Cash Flow Indicator Ratios
- Market value ratios
- Financial analysis
- Business Terms
- Financial education
- International Financial Reporting Standards (EU)
- IFRS Interpretations (EU)
- Financial software