Financial Risk Manager (FRM)
The FRM designation is a professional certification offered by the Global Association of Risk Professionals (GARP). The designation is viewed as the globally recognized gold standard for risk professionals. Since its inception in 1997, the FRM designation has rapidly grown in popularity, with enrollment in the program increasing year after year, and exploding in the years following the global financial crisis of 2008.
The improper handling of potential market and credit risks in the early part of the 21st century led to a huge demand for qualified risk professionals who were able to define a firm’s risks clearly and accurately. Professionals holding the FRM® designation are often viewed as some of the most qualified in the industry, which led to the enrollment boom.
In order to obtain the FRM designation, candidates are required to meet two key requirements:
1. Successfully pass two separate exams i.e. FRM exam Part 1 (L1) & FRM Exam Part 2 (L2) and complete a minimum of two years of full-time work experience in the field of financial risk, or related areas.
2. The work experience can be related to fields like portfolio management, industry research, trading, faculty academic and risk consulting.