Why FRM Financial Risk Manager is a popular profession

In order to qualify for the FRM designation, applicants must have at least two years of relevant work experience in addition to passing two exams. Currently, FRM holders are not required to pay an annual fee for it.

FRM three thresholds:

Threshold 1: The examination is difficult: the examination subjects are comprehensive, covering market risk, credit risk, operational risk and corporate governance, and involve modern management, finance, economics, quantitative statistics and many other disciplines, the knowledge structure is complex, therefore, candidates need to go through strict professional training, otherwise, it will be difficult to understand the complex quantitative relationship and the risk nature of business and products.

Threshold 3: It is not easy to obtain qualifications: The application conditions for the FRM certification exam are relatively relaxed, and there are no restrictions on the applicant's academic qualifications and industries, and college students can also apply for the exam.

However, there are many hurdles to climb in order to obtain a professional qualification issued by GARP. First of all, you must pass the difficult FRM exam; Then, with more than 2 years of work experience in the field of financial risk or other related fields, you are eligible to apply to become a GARP member; In addition, it is also necessary to sign a professional ethics convention with GARP in order to really get started and become a professional financial risk manager.

Recently, candidates who want to take the FRM exam have written to consult: "I am a junior in college, 211, majoring in finance, I can almost go to a local small commercial bank after graduation - do chores, I want to go to HSBC, JP Morgan and other international banks, if I can pass the FRM exam when I graduate (no work experience, not a holder) and ** qualifications, will it be more beneficial for me to work?"

The FRM exam began in 1997 and is organized by the American Association of GARP, the world's largest and most authoritative international risk management organization with more than 150,000 members in 195 countries. At present, the number of FRM holders in the world is 10,000, and the number of FRM holders in China is 1,200. The People's Bank of China and the Industrial and Commercial Bank of China will select a group of employees to learn FRM every year, which shows the importance that China's banking industry attaches to FRM.

Gone are the days when the market has been the best, profits are readily available, and all assets are appreciating. Today, traders, investors, and even bank managers need real knowledge and better risk assessment methods to identify undervalued assets that may outperform the 2% yield on US Treasuries. Global financiers are starting to do their homework.

After the era of buying and selling assets that they don't fully understand and taking risks they don't understand, financial experts are learning to understand these assets and risks.

The FRM exam is becoming more and more important in the financial industry.

From the perspective of FRM's top 20 global employers, all of them are the world's top financial institutions, of which 60% are the world's top banks. Therefore, as the core of the financial field, the banking industry's thirst for risk management talents is the primary reason for the development of FRM.

As of July 2015, ICBC had a total of 360 financial risk managers (FRMs), accounting for more than 10% of the total number of financial risk managers in China, ranking first in the industry. Among them, more than 70% are directly engaged in risk management, and nearly 7% are engaged in the management of branch presidents or above, which directly promotes the improvement of ICBC's risk management level.

With the full opening up of China's banking industry to the outside world and a large number of financial risk management talents, the establishment of a risk awareness culture at the level of the entire banking institution plays an important role in improving the overall operation level and competitiveness of China's commercial banks.

In recent years, financial risk management has received more and more attention from various enterprises, and it is an indispensable prerequisite to obtain a FRM certificate in order to enter the industry. Is the pass rate high?

What is the FRM exam pass rate?

Financial Risk Manager Level 1 Exam: May pass rate: 45% (2016 %(2017 %(2018 %(Year % (2021);

November pass rate: 45% (2016 %(2017 %(2018 %(

Financial Risk Manager Level 2 Exam: May pass rate: 50% (2016 %(2017 %(2018 %(year % (2021);

Overall, from 2016 to 2021, the passing rate of the FRM exam has been increasing steadily year by year, which shows that the difficulty of the FRM exam is still relatively moderate.

What does FRM look at?

1. Professional knowledge of financial risk management.

In terms of the second-level examination of financial risk managers, the subjects of the second-level examination of financial risk managers include "frontier topics in financial markets", "investment risk management", "liquidity risk management", "operation and comprehensive risk management", "credit risk management and measurement", and "market risk management and measurement". The proportion of knowledge related to financial risk is very high.

2. Mathematical knowledge.

The financial risk manager exam involves certain mathematics-related content in the examination content, and its examination difficulty is similar to the difficulty of the mathematics major entrance examination, and the financial risk manager candidates want to complete the mathematics examination, they need to improve their mathematical ability to the level of being able to pass the mathematics examination of the financial major.

3. Knowledge of English.

The financial risk manager exam is in English, and the exam is conducted in English, and the group is promoted in the process of the financial risk manager exam, which will involve the expression of financial-related professional vocabulary, if you don't understand, you may know how to answer, in terms of the experience sharing of candidates who have passed the financial risk manager exam in the past, it is recommended that if you want to take the financial risk manager exam, you can improve your English proficiency to the level of university English level 4.