15 Points about the Value of Having the GARP FRM Designation

Estimated reading time: 10 minutes



The FRM designation, as offered by the Global Association of Risk Professionals (GARP ®), is a high mark of distinction and accomplishment in the financial industry.

The world over, industry players know that these certified individuals have the necessary knowledge and skills to impact change in organizations.

Having the title after your name is like having many pages of a colorful CV and references summed up in three letters. The title is priceless, as you are about to see.


1. This mark signifies that you are a risk expert

This accreditation denotes a highly qualified Risk Expert. The certification process gives one a deep understanding of financial markets and products, risk models and regulations in the world economy.

Globally, this is the one accepted, recognized and respected title. The certification equips professionals with rigorous knowledge and skills in risk management.

The GARP program is a practical one, enabling young professionals to be able to apply the knowledge to real-life situations.

The designation is simply designed to meet the ever-changing demands in the financial industry. The long and short of it is that the rigorous training, the intricate exams and work experience transforms you into an expert in the field of financial risk management.

You will have the aptness to better foresee, analyze and control various risks in the environment. With respect to risk, this mark signifies mastery of knowledge and experience.


2. It shows you are operating at a higher ethical standard

Unethical conduct in the financial sector is a form of risk in itself. All GARP professionals are obligated to adhere to a strict professional code of conduct and ethical standards.

It is a requirement to follow these regulations for the professionals to continue to be part of the GARP global network of risk experts.

Therefore across the world, it is known that GRAP’s certified professionals operate at a high ethical standard.

GARP clearly outlines its accepted risk management practices in its code of conduct. GARP certified professionals must also weigh and consider issues contextually to adjust their conduct accordingly.

This achievement signifies risk professionals that champion integrity, honesty and full competence in their work. They avoid dishonest assessments, analyses and other processes that lead to unfair business advantages.

In all their doings, they aim to uphold the reputation of the profession.


3. It signals that you are committed to the profession

Earning the certification from GARP is not easy, but once you do, the title will be a symbol of your commitment and dedication to the profession.

For starters, passing the exam requires rigorous hours of study. On average it takes nearly 500 hours of studying to pass the level 1 and level 2 exams.

Beyond the examination success, the GARP institute also requires aspiring professionals to demonstrate two years of work experience in the areas of risk.

As an example, one considered acceptable work experience is in the finance sector for risk consulting or portfolio management.

Meeting all these requirements takes commitment and only the loyal will succeed.


4. The designation signifies up-to-date professionals

Even after achieving the GARP certification, risk professionals must stay up to update with their knowledge by taking part in the institution’s Continuing Professional Development (CPD) Program.

The CPD program gives you a framework for gaining new experience in risk management to maintain the quality of your certification.

These professionals can adapt to changing risk environments. The program gives you up to date knowledge in new forms of risks, regulations and acceptable practices in the global financial markets.

You have the best chance of increasing value to the company, it clients and shareholders, and can therefore steer bigger teams to the same vision.


5. It is a sign of your commitment to advancing yourself

There are many certifications in the financial sector for personal improvement and career advancement. Among those that are quite involving includes GARP’s program.

This journey is admittedly complex and the exam pass rate is relatively low, being in the 40 percentile. Therefore, successfully going through the course and receiving certification signifies a significant personal commitment to self-improvement.

The program will require investing a considerable amount of time studying for the exams. That often demands juggling studies with work, family and friends.

Beyond the time requirement, this decision takes a substantial financial investment too. You will have to part with $400 to enroll for the level 1 exam.

You will similarly pay around the same amount for individual exam registrations. Registration fees are $350 for early enrollment, $475 for standard registration and $650 for late registration.


6. It will set you apart from other employees

The Financial Risk Manager designation is a credential that sets you apart in the financial industry. There is an ever growing need for financial risk management experts.

Employees with an FRM designation are believed to have achieved the gold standard of the industry. 

During recruitment, big companies in the financial sector will prioritize professionals with the certification for job openings where risk management is concerned.

The endorsement signifies an individual that can add maximum value to his or her organization. It is a sign of proficiency; that you can fulfill your duties and tasks more effectively.

Such professionals are sharp, with clear cut decision-making skills when dealing with risks or identifying opportunities.


7. The title is a symbol of dynamism

These professionals also stand out with dynamism in the industry. They can interplay between market, credit and operational risks to maximize value and reduce losses in organizations.

These certified risk managers approach risks from a holistic perspective. These individuals have the expertise of identifying and allocating many forms of risks, creating a risk management plan and providing recommendations that lead to better decisions.

These new skills make you an indispensable asset in your organization.


8. It indicates that you can take on higher responsibilities

Attaining certification is a time-consuming undertaking that takes strategic planning and many hours of study, and so the designation is a symbol of your industriousness.

Having the accreditation proves to your employer that you can handle more responsibilities and successfully oversee teams.

It is not just the hard work that makes you ready for jobs with higher demands; the certification equips you with the skills necessary to handle the job demands. You will have soft skills including time management, critical thinking and decision making.

The program also sharpens your skills in risk management, analyses, and mitigation. Such expertise qualifies you to take on more tasks in your organization. 

This accomplishment is a ticket to get to the next level in your career. Certified employees are often considered when it comes to managerial or executive roles in risk.

The designation is proof that you can operate and add value to the firm at a higher level.


9. The title signifies that you are a leader in the making

Position yourself for leadership roles in your organization. This globally recognized certification has a high standing to it, and its title holders are known to be individuals that uphold higher standards in the financial sector.

The quantitative and analytical skills that are formed are highly needed in leadership roles.

Industry regulators often demand that firms in the financial sector prove that they are actively involved in maintaining the highest level of knowledge, accountability and ethics in their operations.

For that reason, certified individuals are placed in charge of teams not only to add value to the organization but also to maintain the highest standards of ethics and accountability.


10. Broaden the reach of your professional networking scope

The global recognition of the course is increasing each year. There has been a reported 29% growth in new registrations in the past eight years.

Qualified individuals get to become part of the 150,000-strong global holders. Connecting to this network will lead to a broader understanding of the financial markets in all the regions of the word.

This kind of networking also helps you fill knowledge gaps and advance your career at a much faster pace. Being part of the global network exposes you to exclusive industry insight.

You will get to stay up to date with industry developments, regulations, and other trends in the financial sector. Because of that, you will continue to be an invaluable member of your organization.

Beyond getting access to critical industry knowledge, being part of the professional network also gets you access to elite industry events. These events are organized to chart the way forward in the industry by debating issues and holding conversations that matter in the world of risk.

These vital events bring together industry regulators, practitioners and academics under one roof. And this makes for a truly momentous occasion.

Then, of course, you can expect that by tapping into the network you get exposed to a limitless array of job opportunities. Job changes and career advancements are easier to accomplish in such networks.


11. Increased opportunities to work at higher levels

The achievement can advance your career by years. After attaining certification, professionals may jump to managerial positions in relatively short time periods.

The career advancement opportunities will also come from within your GARP network. Within that cluster, you will have all the resources to get a higher job position in the field of risk and finance.

The more people you know and the more people that know you, the more colorful your career profile can be.


12. The title signifies a problem solver has been created

The program fosters critical skills and risk competencies that are needed in leadership and managerial job positions. Certified professionals are the go-to persons to get things done effectively.

The certification makes you an asset when it comes to steering the company to profitability and adding value to employees, clients, stakeholders and shareholders.

Most definitely, you will also be working hard. The qualification creates professionals who can put in more work and for longer than all other employees. FRM professionals achieve beyond their job requirements.

By delivering beyond expectations, your skills will be in high demand.


13. Increased opportunities to work in other countries

The program sharpens your knowledge in the global economy and financial markets. Your perspective of risk will be at the global level.

In light of that, no matter where you choose to work, you will be able to demonstrate that you are a highly proficient financial risk expert.

Then again, the fact that you will be networking with fellow professionals across the world means that you have higher chances of scoring job positions outside your country.

The network is the right place to expand your knowledge about regulations and trends in the industry in various regions of the world. Many top financial firms have a global reach.

Given the fact they prioritize certified professionals for their senior risk roles, you can expect that your job position will be global in nature.

You may be in charge of leading teams and steering all aspect of risk management in the company. You could have offices in more than one country.


14. It will increase your compensation prospects

This mark is associated with high earning professionals.  And that conjecture is true especially after attaining certification. These persons take on jobs with more responsibilities and others get promoted to leadership roles.

Instead of waiting years to gain the necessary experience required to earn bigger salaries, many professionals are taking this path. Data show that after the certification you can expect a pay rise of approximately 25%.

Even though your salary scale will depend on your organization and location, the average salary ranges between $50,000 and $165,000 per year.

Your increased job responsibilities overall value to the organization justifies the higher wage.


15. The title signifies that you are ready to tackle real-world challenges

Industry experts design your exams in such a way as to reflect the emerging industry trends. The course is updated annually to be in sync with trends in regulation and standards of practice.

The curriculum covers a broad range of topics in the application of risk management techniques to investment management. The exam questions are practical and drawn from real-world experiences.

Candidates simply have to know how to apply their knowledge in practical situations to pass the exams.


In Closing

The FRM designation is a highly respected title in the world of risk and finance. Many benefits will accompany the title, but most importantly it is a path to self-actualization in your career.

So, start studying today and earn your right to take on that title!



The QuestionBank Family