LICENSED RISK MANAGER PROFESSIONAL

In order to become a CRM you need to complete 5 courses with NAIER. According to the National Alliance for Insurance Education and Research (NAIER), the topics are analysis of risk, control of risk, financing of risk, practice of risk management, and principles of risk management.

The five topics that you’re tested on all relate to measuring and mitigating risk.

LICENSED RISK MANAGER PROFESSIONAL

However, their professional knowledge is much more focused- even more so than FRMs. #3 Certified Risk Manager (CRM) CertificationĪs with all certifications on this list, Certified Risk Managers (CRMs) work in the risk management industry. However, there’s always a demand for this position in almost any industry. Most FRMs work in banks, insurance companies, and investment firms. According to the Bureau of Labor Statistics, employment for this certification is projected to grow 15% by 2029. Ultimately, career options for FRMs are very good. If you’re lucky and experienced, you may earn up to $95K a year- but these positions are uncommon. FRM Careers and SalariesįRMs are solid earners, but they make a bit less than CFREs.

But after all of that, you’ll be officially recognized as an FRM by the Global Association of Risk Professionals (GARP). Once you’ve passed the test, you’ll then have to complete two years of work experience in the risk management industry. For the most part, you’ll need to apply that knowledge to real world concepts- which is how FRM exam questions are structured. In order to obtain the Financial Risk Management certification, you have to complete a 2 part exam based on the skills mentioned above. Knowing these skills makes an FRM a highly valued asset wherever they’re employed. You’ll need to understand how products affect financial markets, common market risk and credit risk models, and best practices for the risk management profession. Instead of computer science, Financial Risk Managers prioritize tools and techniques used to manage risk in a global environment. Obviously both are enterprise risk management professionals, but they approach this work with different skillsets. #2 Financial Risk Manager (FRM) CertificationĪ certified Financial Risk Manager (FRM) is similar to a CFRE in a few ways. When looking for work, make sure to check out any consulting positions for financial firms such as Goldman Sachs or Morgan Stanley. Every company needs someone who can manage risk effectively. There’s a very high demand for CFREs due to how useful their skill sets are. Plus, long-term CFREs can see their salaries increase to $110K. Typically their starting salary averages around $72K a year. CFRE Careers and SalariesĬFREs are very good earners. Plus, CFREs are in high professional demand- so you’ll have an easier time getting hired after completing your training. Over the course of that program, you need to pass 2 other tests focusing on fixed income, derivatives, risk management, and programming.īecoming a CFRE is a good option for anyone trying to save time and money on their education. Instead, you just need to pass an entrance exam before taking a 10-month program. You don’t need a 4-year degree to get started- although having college experience with computer science, statistics, and advanced mathematics will help your chances. Despite this, the educational requirements are lighter than you might expect: CFRE Education Requirements Because of that, becoming certified requires a strong working knowledge of quantitative modeling, model validation, and enterprise risk management.Įssentially, this career path has a heavy focus on computer science- valuable skills for both understanding and mitigating risk in business. #1 Chartered Financial Risk Engineer (CFRE) CertificationĪ CFRE is a professional specializing in financial risk management. There’s even a bonus prep course recommendation for each one, so you can start preparing as soon as you make up your mind. In order to help you decide, I’ve organized these globally recognized certs based on education requirements, average salary, and job availability. Each of these are good in their own way- but some are just better than others. That’s why it’s important to learn as much as you can about each position before deciding on which one you want to earn.īased on my research, these are the top 5 risk management certifications in the field. Naturally, starting your career as a professional risk manager is much harder if you can’t even figure out the first step. Are you interested in becoming certified to manage risk professionally? If so, you have a lot of financial risk certifications to choose from!Īfter all, it’s a lucrative field with a lot of career options for ambitious finance professionals: wealth management, investment banking, asset management firms, and so on.īut there are tons of certifications for practitioners to choose from- so which one should you get?

Licensed risk manager