what is a financial risk manager frm 
financial risk manager frm is a professional designation issued by the global association of risk professionals garp the garp frm accreditation is globally recognized as the premier certification for financial risk professionals dealing in financial markets to earn the frm certification candidates must pass two rigorous exams and also work two years in the field of risk management frms possess specialized knowledge in assessing risk and typically work for major banks insurance companies accounting firms regulatory agencies and asset management firms understanding financial risk managers frms an frm identifies threats to assets earning capacity or the success of an organization frms may work in financial services banking loan origination trading or marketing many specialize in areas like credit or market risk frms determine risk by analyzing financial markets and the global environment to predict changes or trends it is also the frm s role to develop strategies to counteract the effects of potential risks financial risk managers frms are required to be accredited by the global association of risk professionals garp the financial risk manager frm programthe frm exam covers the application of risk management tools and techniques to the investment management process to receive the frm designation candidates must successfully complete a comprehensive two part exam and complete two years of work in financial risk management professionals who hold the frm designation can participate in optional continued professional development the frm program follows the major strategic disciplines of risk management market risk credit risk operational risk and investment management the exam is recognized in over 90 countries and is designed to measure a financial risk manager s ability to manage risk in a global environment the questions are practical and related to real world work experiences candidates are expected to understand risk management concepts and approaches as they would apply to a risk manager s day to day activities part 1 of the frm exam is 100 questions that focus on the following four topics weighted as noted part 2 of the exam consists of 80 questions from the following topics weighted as follows the median annual salary of financial managers and frms in 2023 according to the u s bureau of labor statistics bls 1industry outlook for financial risk managers frms in 2023 the median pay for financial managers including frms was 156 100 per year according to the u s bureau of labor statistics bls 1employment of frms is expected to grow much faster than the average for all occupations at 16 from 2022 to 2032 the bls states that several specialties within financial management particularly cash management and risk management are expected to be in high demand over the decade 2naturally the vast majority of frms are employed in the financial services industry but the demand for good risk management teams is high in all areas of the economy from healthcare and engineering to technology and natural resources according to garp these are the top 10 companies employing the most frms 3frm vs cfathe chartered financial analyst cfa designation is one of the most recognized financial designations in the world frm is considered the gold standard of financial risk managers and the cfa has a similarly stellar reputation among financial analysts since both the cfa and frm seek to certify professionals in the financial industry they re often compared with each other the basic difference between the two is this frm is a more specialized designation than the cfa the cfa covers a wide range of topics related primarily to investment management including financial analysis corporate finance equities bonds derivatives and portfolio management the frm on the other hand focuses primarily on managing exposure to a variety of risks including operational risk credit risk market risk and liquidity risk the frm and cfa also have different requirements to earn your frm certification you must to become a cfa charterholder you must advantages of the frm designationthere are several advantages to earning the frm certification first there is the reputation that comes with the program it is widely regarded as the risk management industry s leading designation thus it is a strong indication of ability and experience within the field in other words the frm carries significant weight with employers and colleagues given how rapidly financial markets are changing the demand for risk management experts will likely only grow over time the second benefit is the obvious educational one as mentioned earlier the frm certification provides professionals with a thorough understanding of risk management in practical terms that means knowing how to anticipate respond and adapt to critical risks 