GARP Certified Financial Risk Manager

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Risk management has become a valuable asset for companies all over the world. With the increase in the complexity of financial products, regulations and institutional failures, a measure to prevent these or decrease their occurrences was required. For this reason, financial risk management was taught to professionals in their respective companies. However, for a person to really display their skills in this elaborate field, a certification such as the one offered by GARP is required.

About GARP and the Certification

The Global Association of Risk Professionals (GARP) is a non-profit organization that helps risk managers all over the world. GARP has been established to create risk awareness within companies on all levels. One of the certifications this organization has to offer is the Financial Risk Manager (FRM) certificate, which indicates that its holder has been through the best practices and training needed to manage financial risks.

Managers who undergo the FRM program will learn technical and industry knowledge of financial risk management. However, they will only receive their certificates after passing two comprehensive exams: Part I and Part II. Both of these exams cover all the areas of financial risk management, and their questions are scenario-based to test the examinee’s knowledge in a practical way. More information about the certification can be found on GARP’s official website.

The Importance of the Certificate

The FRM certificate is important for employees because it broadens their career potential. Since they will be aware of each best practice in financial risk management, employees will be promoted to Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director, Investment Risk Management and other prestigious positions.

As for employers, having a FRM certified worker means that he or she will be capable of tackling the following:

  • Quantitative analysis
  • Financial markets and products
  • Valuation
  • Market risk measurement and management
  • Credit risk measurement and management
  • Investment risk management
  • Issues in financial markets

Therefore, financial institutions should put more thought into having their managers take up the FRM certification and learn the best practices it has to teach.

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