Articles

FRM Salaries Around the World

Estimated reading time: 9 minutes

 

Introduction

FRM salaries for certified Financial Risk Managers vary widely across the country and the globe. Depending on the size of your firm, prior work experience, location and position, you may expect to earn between $50,000 and $165,000 each year .

The designation is recognized and respected all over the world in financial risk management. The industry is becoming increasingly competitive and focused on ways to prevent risks and maximize opportunities.

Such managers are considered high performers; their skills and knowledge have been validated against tough international standards and they are paid well.

These professionals find themselves working in various areas across different financial environments.

For example, you may function as a finance manager in a large corporation, in charge of or oversee policy-making decisions, financial management or mergers and acquisitions. Or, you be working in a hedge fund, insurance company or a banking firm half way across the world.

Let’s take a deeper look at what you can expect after becoming a certified Financial Risk Manager.

 

Top employers

  • JP Morgan
  • Citigroup
  • Bank of America
  • Morgan Stanley
  • Mitsubishi UFJ Financial Group
  • ICBC China Construction Bank Corporation
  • HSBC Holdings Society General
  • Mizuho Financial Group
  • Wells Fargo
  • Bank of China
  • Goldman Sachs
  • Lloyds Banking Group
  • PWC

 

Top job positions

  • Financial Manager
  • Risk Qualification Manager
  • Corporate Risk Director
  • Risk Management Analytics Consultant
  • Operational Risk Analyst Analytics
  • Client Consultant
  • Credit Risk Specialist
  • Risk Analyst

 

Expectations

Going into the profession, it can be safe to expect a decent wage. If you took the certification for career advancement, there is a salary appraisal as well.

For entry-level personnel, there is a considerably higher salary scale, more than what uncertified professions in the industry could expect.

The salary scale in financial risk management depends on the company you choose to work at, the job title and the actual location. The typical average range across the world is $50,000 to $165,000 per year.

That figure gets higher with the more responsibilities you take on and the years of experience you gather.

 

Compensation levels across the world over time

Since the global economic crisis of 2008 and 2009, there has been an ever-increasing demand for risk managers across the globe.

Their skills in analysis and management are in high demand, a factor that has caused salaries to increase significantly.

 

In the USA

  • 2016: $80,000
  • 2015: $76,000
  • 2014: $73,000
  • 2013: $69,000
  • 2012: $65,000
  • 2011: $61,000

 

In Dubai

  • 2016: $88,000
  • 2015: $90,000
  • 2014: $89,000
  • 2013: $82,000
  • 2012: $80,000
  • 2011: $73,000

 

In Australia

  • 2016: $61,000
  • 2015: $59,000
  • 2014: $56,000
  • 2013: $52,000
  • 2012: $51,000
  • 2011: $50,000

 

In Canada

  • 2016: $74,000
  • 2015: $70,000
  • 2014: $69,000
  • 2013: $66,000
  • 2012: $68,000
  • 2011: $65,000

 

In the UK

  • 2016: $60,000
  • 2015: $58,000
  • 2014: $55,000
  • 2013: $54,000 
  • 2012: $52,000 
  • 2011: $48,000

 

Job Positions

These salary estimates were made from 3,200 current and past job advertisements online. In the US, the average salary for these jobs as advertised ranged from $77,342 for Risk Analyst to $144,034 for Quantitative Analysts.

After the 2007-2009 recession, there was an increase in risk-related job positions. Companies started looking for highly skilled risk professionals in market risk, operational risk, and credit risk.

Currently, top employers include international banks, Investment Firms, and insurance companies. About 3,000 certified individuals are working in different companies across the world.

The following data comes courtesy of Career Role:

 

US Average:

  • Risk Analyst: $82,424 per year
  • Credit Risk Manager: $123,000 per year
  • Vice President, Finance: $90,000 per year
  • Senior Internal Auditor: $88,437 per year
  • Financial Analyst: $50,868 per year

 

UK Average:

  • Risk Manager: $43,007 per year
  • Investment Analyst: $29,067 per year
  • Credit Risk Analyst: $26,515 per year

 

Singapore Average:

  • Risk Manager: S$111,841 per year 
  • Risk Analyst: S$63,200 per year

 

India Average:

  • AVP, Market Risk: INR 2,908,740 per year
  • Risk Analyst: INR 800,000 per year
  • Senior Business Analyst: INR 890,000 per year
  • Risk Manager: INR 1,047,619

 

Globally, risk management professionals have better career opportunities of growth in the US, the UK, Singapore, China and Hong Kong among other locations.

 

Career Options and Estimated Remuneration

Each job position has a different salary figure and remuneration scale. That is because the job demands vary, with some posts carrying significantly more responsibility than others.

Some positions simply add more value to a business than others.

For instance, a Credit Risk Manager has more responsibilities and therefore earns more than a Senior Internal Auditor. The Senior Internal Auditor adds more value to an organization and thus earns more than a risk analyst.

  • Analytics Manager: $104,094
  • Senior Business Analyst: $100,029
  • Risk Manager, Personal Banking: $91,602
  • Credit Risk Specialist: $88,756
  • Market Risk Specialist: $73,293
  • Operational Risk Analyst: $66,500 
  • Risk Management Analytics Consultant: $64,000
  • Regulatory Risk Analyst: $62,459
  • Analytics Client Consultant: $65,000
  • Actuary: $112,496 
  • Investment Analyst: $79,277
  • Financial Modeler: $76,252
  • Market Analyst: $57,380

 

Varying Requirements Based on Position

 

Analytics Manager

  • Oversee projects and provide metrics ROI
  • Carry out Cost-Benefit Analysis (CBA) on selected business projects
  • Develop comprehensive project plans
  • Analyze business systems and solutions to having a broad business impact
  • Identity and creates mitigation plans
  • Report project status to executives, business partners, and other stakeholders

 

Senior Business Analyst   

  • Support and streamline efforts to meet customer and business objectives
  • Manage customers and expectations by creating communication processes to keep them up-to-date on project results
  • Stay up to date with customer needs and strategies
  • Lead several projects by updating project documentation and managing project scope
  • Provide leadership and collaborate with others
  • Identify, facilitate process design changes through business and systems process analysis
  • Provide project level analysis

 

Risk Manager 

  • Conduct evaluations to define possible risks
  • Evaluate each risk and outline its consequences
  • Audit procedures and processes
  • Develop risk controls and systems
  • Design procedures to mitigate risks
  • Create contingency plans for risk crises
  • Evaluate current policies and processes to find weaknesses
  • Prepare reports and present recommendations

 

Risk Specialist 

  • Document and report on key risks
  • Prepare financial reports and budgets
  • Maintain data quality of risk management systems
  • Recommend strategies to reduce risk
  • Advice teams on business and operational matters
  • Identify and assess risks to business operations
  • Analyze financial data
  • Gather risk data from various resources
  • Apply mathematical models of financial or business conditions

 

Various Positions and Salaries in the United States

 

New York, NY

  • Risk Analyst: $100,825 per year
  • Risk Manager: $135,230 per year
  • Actuary: $123,095 per year
  • Investment Analyst: $97,193 per year
  • Financial Modeler: $144,916 per year
  • Quantitative Analyst: $161,987 per year
  • Finance Intern: $56,301 per year
  • Market Analyst: $101,919 per year 

Ohio

  • Risk Analyst: $61,708 per year
  • Quantitative Analyst: $27.21 per hour
  • Financial Modeler: $76,252 per year

Alabama

  • Risk Analyst: $58,799 per year
  • Quantitative Analyst: $125,117 per year
  • Financial Modeler: $157,859 per year

Arkansas

  • Risk Analyst: $113,947 per year
  • Quantitative Analyst: $145,927 per year
  • Financial Modeler: $118,514 per year

Arizona

  • Risk Analyst: $36.05 per hour
  • Quantitative Analyst: $61,369 per year

California

  • Risk Analyst: $93,869 per year
  • Quantitative Analyst: $138,323 per year
  • Financial Modeler: $130,119 per year

Colorado

  • Risk Analyst: $69,174 per year
  • Quantitative Analyst: $71, 441 per year
  • Financial Modeler: $120, 914 per year

Connecticut

  • Risk Analyst: $98,081 per year
  • Quantitative Analyst: $110,793 per year

Delaware

  • Risk Analyst: $90,454 per year
  • Quantitative Analyst: $83,355 per year
  • Financial Modeler: $113,292

Washington DC

  • Risk Analyst: $107,319 per year
  • Quantitative Analyst: $111,689 per year
  • Financial Modeler: $157,376 per year

Florida

  • Risk Analyst: $50,161 per year
  • Quantitative Analyst: $88,685 per year

Idaho

  • Risk Analyst: $19.70 per hour

Illinois

  • Risk Analyst: $83,870 per year
  • Quantitative Analyst: $92,709 per year
  • Financial Modeler: $93,009 per year

Iowa

  • Risk Analyst: $80,473 per year
  • Financial Modeler: $147,865 per year

Maryland

  • Risk Analyst: $63,190 per year
  • Quantitative Analyst: $165,176 per year
  • Financial Modeler: $117,577 per year

Massachusetts

  • Risk Analyst: $91,721 per year
  • Quantitative Analyst: $156,241 per year
  • Financial Modeler: $143,417 per year

Michigan

  • Risk Analyst: $75,684 per year
  • Financial Modeler: $126,707 per year

Minnesota

  • Risk Analyst: $19.39 per hour
  • Financial Modeler: $60.00 per hour

Nebraska

  • Risk Analyst: $89,622 per year
  • Financial Modeler: $17.20 per hour

New Jersey

  • Risk Analyst: $100,768 per year
  • Quantitative Analyst: $99,481 per year
  • Financial Modeler: $81,228 per year

North Carolina

  • Risk Analyst: $90,938 per year
  • Quantitative Analyst: $114,349 per year
  • Financial Modeler: $115,130 per year

Oklahoma

  • Risk Analyst: $54,954 per year

Pennsylvania

  • Risk Analyst: $73,513 per year
  • Quantitative Analyst: $121,778 per year
  • Financial Modeler: $109,486 per year

Tennessee

  • Risk Analyst: $57,760 per year
  • Quantitative Analyst: $158,082 per year
  • Financial Modeler: $144,441 per year

Texas

  • Risk Analyst: $70,888 per year
  • Quantitative Analyst: $115,523 per year
  • Financial Modeler: $104,795

Utah

  • Risk Analyst: $44,886 per year

Virginia

  • Risk Analyst: $63,132 per year
  • Quantitative Analyst: $99,703 per year
  • Financial Modeler: $150,209 per year

 

Compensation According to Experience

It is safe to say that the profession has some of the best career prospects and growth opportunities in the finance industry. However, the amount you can expect to earn largely depends on your skill set, academics and work experience.

Higher academics and many years of experience in the industry are what you need to command more salary in the industry. The more experienced you are, the higher pay you take home.

For instance, if a particular position demands a professional with ten years of experience, and you come in with less than that, you will likely find yourself on the lower side of the pay scale.

A Risk Analyst starts at $57K. That is an entry-level analyst with not more than 5 years’ experience. This total compensation sums up bonuses, tips, and overtime pay.

They then put in many years of work to climb up the ladder to the Senior Risk Manager position which pays $114K. Most Senior Risk Managers have more than ten years of experience in the industry.

Many Analysts end up at the Risk Manager position where the average pay is $86K annually. They typically have between 5 and ten years of experience.

 

Top Cities 

In the US, the highest paying cities include San Francisco which pays 36 % more than the national average. There are also better salaries in Washington DC, Wilmington, New York, and Stanford.

The least paying cities include Boston, Philadelphia, and Tampa.

 

Top States 

  • Arkansas: $104,189 and ranks 1st among all other states
  • New York: $102,192 and ranks 2nd in the country
  • Michigan: $101,446 and ranks 3rd in the country
  • Washington DC: $96,754 and ranks 4th in all of the US
  • Massachusetts: $96,495 and ranks 5th in the whole country
  • Alabama: $95,029 and ranks 6th in the country
  • Virginia: $87,605 and ranks 7th in the nation
  • Illinois: $86,686 and ranks 8th in the country
  • Minnesota: $84,779 and ranks 9th among states in the country

 

The Bottom Line

As the data shows, a career in risk management can be very lucrative. However, the remuneration depends on several factors top among them the location, your years of experience, the job responsibilities and the title.

Before going into the profession, it would best to understand the career prospects it might offer. This information will help you decide if certification is a good option for you.

Arming yourself with this knowledge, you will be ready for the career roles, the job requirements, and the salary scales.

We hope that you have found some useful information here with respect to FRM salaries. Be sure to check out our Article Section for more insightful reads, as well as our Shop Page to download all our free test materials.

 

Never give up,

The QuestionBank Family