Is the US FRM exam useful?

FRM Financial Risk Manager, as the highest-valued certificate in the financial field, has been valued more and more in recent years. Today, the editor has brought you an introduction to studying in the United States and taking the FRM exam. Come and find out more!

At present, more than 80% of the world's financial institutions have set up the position of chief risk management officer (CRO). In the future, there will also be chief risk management officers (CRO) with an annual salary of one million in China. , this is the future benchmark for high salaries in my country. In developed countries, CRO is as famous as CEO, but it is still little known in our country.

If you have clear plans for your future career and have a strong interest in the financial field, then taking the FRM exam is a good choice.

If you just have the idea of ??research and are not clear about how to develop in the future, then in the process of learning FRM, you can see your career goals step by step.

What is an FRM Financial Risk Manager

FRM (Certified Financial Risk Management Program) is an international professional certification provided by GARP (Global Association of Risk Professionals).

GARP is the only member association recognized by professional risk managers. GARP has 500,000 members in 195 countries. These institutions, namely central banks, commercial banks, investment banks, corporations, asset management companies, academic institutions and government agencies employ members of GARP.

How to obtain the FRM Financial Risk Manager?

Application conditions: There are no restrictions on academic qualifications or industry. University students can also apply.

Time required to obtain qualification (average): 1-2 years.

Cost to qualify (excluding training): $1,200.

International recognition: high, the most authoritative qualification certificate in the international risk management industry, is increasingly valued by financial institutions, and the number of applicants worldwide is growing rapidly.

Domestic recognition: Talents holding FRM certificates are increasingly recognized by major financial institutions.

About the FRM exam

In order to obtain certification, the FRM exam is mandatory and consists of Level 2 exams. The first part of the FRM exam covers tools for assessing financial risk, such as risk management fundamentals, quantitative analysis, financial markets and products, valuation and risk models.

Part II of the FRM exam focuses on applying the FRM exam through a deeper exploration of current issues in market risk measurement and management, credit risk measurement and management, operational and integrated risk management, risk management and investment management. The tools acquired in the first part are in financial markets.

It takes successful candidates an average of two years to obtain FRM certification. Exam fees range from $1,050 to $1,500. The FRM I and FRM II exams are held twice a year, and both can be taken on the same day. Each level exam requires approximately 150 hours of study time. The historical pass rate of the FRM exam is about 40%-50%.

The benefits of holding an FRM certificate

There are many professional benefits to holding an FRM qualification certificate. Here are a few examples.

Reputable FRM Global Employer

Financial employer organizations around the world have realized that to succeed in the rapidly changing financial industry, they must recruit FRM personnel with professional knowledge and skills. . The FRM designation is the most well-known and respected qualification in financial risk. 46 of the world's 50 largest banks have FRM certificate holders.

Global banks hiring FRM include

Bank of America, Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, HSBC, Wells Fargo, Citigroup, Santander, Morgan Stanley Chase, China Construction Bank.

Goldman Sachs, KPMG, Deloitte, PIMCO, JPMorgan Chase, BlackRock, Morgan Stanley, Credit Suisse, Bridgewater Associates, Man Group, Barclays, ING, AIG

82% of financial companies prefer to hire FRM certificate holders

FRM qualification certification will provide you with a lifelong platform to contact the world's top financial risk managers and accelerate your career development opportunities. 82% of financial companies stated that they prefer to hire an FRM certificate holder as an employee.

Improving professional knowledge in the field of financial risk

This is a rigorous and challenging certificate examination. At the same time, the FRM exam will be inspected and updated twice a year by professional risk managers. You can keep your knowledge up-to-date on market biases in financial risks and management tools. Therefore, by holding an FRM certificate, you will advance your expertise in the field of financial risk.

Salary level of FRM certificate holders

Domestic FRM salary: ranging from 250,000 to 1 million

Foreign FRM salary: about 1 million

Geographic location

From a geographical point of view: FRM certificate holders can get the best career development opportunities in the United States, the United Kingdom, Hong Kong, Singapore and China, but there will be some differences in salary and benefits. Certain differences.

Career development

The main positions involved are financial institution risk management department, financial unit audit department, asset management department, fund manager, financial trader (broker), investment bank Business operators, commercial banks, risk technology companies, risk consultants, corporate accounting and auditing departments, as well as CFOs, MIS, CIOs of various companies, etc.

Is the FRM exam more suitable for Chinese international students than the CFA exam?

The investment bank acceptance rate is less than 3%, but the Risk Management department prefers Chinese international students. It is less difficult than joining the front desk of an investment bank. The position is very stable and secure, and the pressure for promotion is relatively small. And the working hours are not as long as those with IBD. Holders of FRM certificates generally work in the risk management department.

What is the future of FRM?

The financial industry has strengthened the measurement and management of financial risks and improved its ability to prevent and control financial risks. Therefore, professionals with knowledge of risk management are highly sought after by enterprises.

The world’s top financial institutions are eager for talent

From the perspective of FRM’s top 20 employers in the world, all are the world’s top financial institutions, and 60% of them are the world’s top banks. . As an institution that manages assets, banks’ first priority is to reduce risks. Therefore, as the core of the financial field, the banking industry’s thirst for risk management talents is the primary reason for the development of FRM.

The scarcity of FRM talents has led to rising salaries

However, domestic education on the FRM exam is relatively insufficient, and financial risk management talents with professional qualifications are rare. The scarcity of talents has led to rising salaries. When recruiting for positions related to the risk management department, those with FRM certificates will be given priority. If the applicant has an overseas background or a related master's degree, It can also be included in the priority list.

The salary of FRM certificate holders is higher than that of general practitioners of the same level

In addition to banks, FRM is also active in various fields of the financial industry. Data shows that the salary of FRM certificate holders Significantly higher than the general practitioners of the same level.

Why are the salaries of FRM certificate holders relatively high?

The financial industry is a high-risk industry, and there are many financial risks such as exchange rate risk, interest rate risk, accounting risk, market risk, and credit risk.

This has also led to a sharp increase in the demand for financial risk management professionals in these industries. However, due to the lag in relevant domestic education, the supply of talents is obviously insufficient. Well-trained, professionally qualified financial risk managers are scarce, and the shortage has led to rising salaries.

At present, financial risk managers receive generous salaries, and participating in professional training and obtaining qualification certificates is a shortcut to becoming one of this popular talents.