How Much Can I Earn With An FRM® Designation?

Attaining an FRM designation will set you apart as a professional risk manager in your workplace and help you advance your career. As a highly skilled financial risk analyst, you can earn from $55,000 to $211,000 annually, as reported by Payscale and Glassdoor. Additionally, managers and directors make more than this.

What is the FRM designation?

The FRM certification is offered globally by the Global Association of Risk Professionals (GARP). Certified FRMs have an edge in the industry because employers recognize them as the gold standard for risk management. Attaining the certification proves to the employers that you can anticipate business risks, prepare for, and put a response mechanism to mitigate this risk.

Your FRM certification shows that your knowledge and skills are up to international standards in an increasingly competitive and fast-paced financial world. Your employer will consider you as an asset to the company.

The FRM certification is more specialized towards investments and risk management. The curriculum includes quantitative analysis, financial markets and products, foundations of risk management, valuation and risk models, market risk management, credit risk management, operational and integrated risk management, investment risk management, and current issues in financial markets.

Let us explore the estimated annual salary of some common FRM designations.

Chief risk officer

A chief risk officer is an executive charged with the evaluation and moderation of significant competitive, technological, and regulatory threats to the company’s investments and income. They are senior executives; therefore, their salaries are highly dependent on the company they work for. However, the average annual salary estimate is between $154,000 and $254,000.

Although earning an FRM designation will not land you an executive job directly, it is instrumental in advancing your career.

Operational risk manager

Operational risk managers assess the day to day running of the company or business and resolve or put in place mechanisms to reduce the loss that the company might face in the future. Consequently, they keep in mind the overall effect the daily activities have on the company’s profit and ensure that the risk is as low as possible.

According to various search engines, the average annual salary of operational risk managers is between $101,500 and $141,000.

Risk manager

A risk manager identifies and evaluates possible risks that can affect the company’s profits in the future. Consequently, risk managers analyze the company’s investment approaches such as asset allocation, fixed income, and hedge funds. If you have an FRM designation, you can expect to earn an annual estimated average salary of $115,000 and $125,000.

Credit risk manager

As a credit risk manager, your job description requires you to develop and carry out strategies and guidelines that mitigate credit risk for your company. Additionally, credit risk managers create financial models that the company applies to predict the level of risk to the organization. Attaining an FRM designation will be instrumental in helping you become a credit risk manager since many employers list it as a requirement.

You can expect an average annual salary of $105,000, according to Payscale.

Regulatory risk analyst

Regulatory risk analysts are tasked with studying laws and regulations, whether new or proposed, and assessing how they impact their company. In addition, they research the effect similar rules have on businesses in other countries, states, and regions. Consequently, regulatory risk analysts analyze all possible outcomes and recommend the best ways to ensure the company complies.

The estimated annual salary of a regulatory risk analyst is dependent on the company one works for. However, various search engines report it to be between $51,000 and $130,000 and as much as $209,000.

Market risk analyst

Market risk analysts job involves researching market trends on behave of companies and investors. They use their risk analysis knowledge and determine the effect of these market trends on the industry or financial sector and give companies comprehensive market assessment reports.

Market risk analysts can earn an estimated salary of between $56,000 and $144,000 annually.

Risk analyst

As a risk analyst, you will apply assessment and analytical skills and knowledge of business markets to study various investment portfolios and determine the risk involved. You can expect an estimated annual salary of between $61,000 and $89,000 with an FRM designation.

Get started in your financial risk management career with AnalystPrep.com

To kick off your career in financial risk management, enroll for an FRM certification. Earning this certification will give you the skills and knowledge needed to become a professional risk analyst.

Contact us at AnalystPrep.com and enroll in our study packages to help you study for your exams. We have a vast library of training resources which include multimedia tutorials from our professors. Our up-to-date library of sample questions will help you practice and pass your exam on the first try.