Definition of Financial Risk Manager

The Financial Risk Manager credential is for professionals associated with helping to manage risks in the business world. An FRM will be capable of analyzing and controlling risks ranging from credit risks to market risks and even risks involving budgetary restraints.

The FRM credential is provided by the Global Association of Risk Professionals. GARP certifies people for the credential based on their ability to handle risks in the workplace and how well they are able to review and understand individual points involving money and how it is being handled in a controlled environment.

Applying "Financial Risk Manager" to Securities Exams:

The rules that GARP has set up for the FRM credential are very specific. The program does not require any particular educational prerequisites but it does require the participant to complete two exams. Also, an applicant needs to have at least two years of full time risk management experience in a professional environment.

Asset managers and portfolio managers should be able to get into the exams in order to receive certification. Analytical employees or accountants may also qualify for the exam. In fact, the people who can take the exam may come from all industries ranging from energy to insurance to technology and software.

Continuing education is also recommended every two years. It is voluntary but GARP does recommend that all FRMs go along with it in order to stop on top of their fields.

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