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Working as a Risk Manager – Part 1

Estimated reading time: 2 minutes

 

Introduction

Whether you have already passed your FRM exams, studying to get over this hurdle or are still having thoughts about if you should do this course or not- chances are you have wondered what is it like working on the job.

Credit risk…market risk…operational risk…regulatory risk…how do these all tie into the day-to-day work activities?

In this series, we will take a look at some of the things you should know when seeking to work as a certified Financial Risk Manager.

 

Succeeding in the environment

In this area of work, you will need to have a curious mind, always trying to figure things out and always open to experience the unexpected.

Some days will be calm and calculated, other days will be hectic and filled with surprises. You just have to be able to deal with it as it comes.

In order to be successful, you will need to excel in several areas:

  • Being able to perform under pressure
  • Completing hours of research work at a given notice
  • Unraveling rules and regulations in order to make optimal decisions
  • Completing further studies while on the job
  • Being extremely comfortable in a high-tech environment
  • Knowing your way around complex modelling and analytical software
  • Being a quick learner

 

Your education

You may find that many persons in this field will have educational backgrounds in areas such as mathematics, economics or finance. However, even if you don’t have such a background then it can be quite okay.

Your determination or grit will be the key factor in the end. Persons have successfully transitioned from other areas into risk management and have done quite well for themselves. So can you.

There are courses out there that will be extremely helpful and these are available at much lower prices than the average university or masters’ program.

 

Compensation levels

In recent years we have witnessed a notable increase in demand for those professionals who understand financial risk and are able to properly manage it.

As a direct result of this increased demand, we have also seen an increase in overall compensation levels for FRMs over the world.

Depending on your level of experience and the country in which you are working, one may expect salaries exceeding US$100,000 per year.

Of course, these levels of pay mean that much will be required of you! Expect to work long hours and even on weekends to complete projects and reports.

Also expect to give regular presentations on your findings to senior members of staff.

It may be time to brush up on those communications skills because you will certainly need them to effectively compete in this environment.

 

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