Risk management is essential thanks to the growing need of volatile market and economic up downs. The opening up of markets for foreign investors and rising MNCs also increase the need to analyze the risks and develop risk mitigation plans. Let’s explore the job profile of a risk manager.
At the entry level, candidates join as Analysts. They typically have MBAs in finance or are post graduates in Science, Mathematics, Statistics or Economics.
- Risk Management deals with first identifying, measuring and prioritizing risks and then addressing or treating those risks appropriately.
- Apart from this, the risk teams also need to come up with firm wide policies and processes with regards to risk.
- They work closely with all divisions within the firm so that they can identify, treat and monitor the risks at each level.
- They also need to work hand in hand with the legal and compliance teams in a firm.
- The job requires a lot of grunge work around regulations, processes and documentation apart from the more interesting bits of risk analysis.
- The timings are regular usually, however if you are working in a consultancy, then there may be some hectic times when you are on a tight deadline project.
Companies to target:
- Banks and Financial Institutions: All MNC as well as domestic Banks, MNC Investment Banks.
- Consultancies: Deloitte, E&Y, KPMG, Accenture, CRISIL etc.
Career opportunities after FRM
Most firms, whether financial or otherwise, have risk teams that assess and manage Financial Risks. Several firms have dedicated teams for each type of risk such as a Credit Risk team, an FX Risk team, an Operational Risk team and so on. Therefore, an FRM designation holder is sought after widely across industries and sub verticals like:
- Banks and Financial Institutions that need to assess and manage all sorts of Financial Risk
- Other firms that are interested in managing their financial exposure related to foreign exchange or markets etc.
- Consultants that advise clients on Risk Management
Over 95% of the top 20 companies employing the most Certified FRMs are global Banks / Investment Banks.
In short, the profile of a FRM is is for those who’ve keen interest in analyzing and assessing risks, taking steps to mitigate the risks, etc.