#CareerBytes: Should you pursue FRM after completing Chartered Accountancy?
What's the story
In India, Chartered Accountancy (CA) is one of the most sought-after and toughest professional courses.
While CA is a respected and rewarding career option, many candidates opt for additional certifications/professional qualifications after completing the program to have an edge over others.
Financial Risk Management (FRM) is one of such popular options to go for after CA.
Here's all you need to know about FRM.
FRM
The FRM certification is offered by the US-based GARP
The Financial Risk Management (FRM) certification is one of the world's most prestigious and rewarding certifications in the field of finance.
The FRM certification, which is recognized globally, is provided by the Global Association of Risk Professionals (GARP) based in the US.
It is a two-part certification that is popular among financial risk professionals worldwide; it is available in 190 countries.
About
What exactly is financial risk management about?
Financial risk management is a process of understanding different financial risks that businesses are currently facing or might face in the foreseeable future.
It is more about managing risks and the process also involves identifying what risks an organization should or should not take.
The FRM certification gives candidates detailed knowledge about assessing and managing various market-based and non-market financial risks.
Parts
The two parts of FRM certification program
The FRM certification, comprising two parts, provides an overview of risk management practices in the financial services sector.
Part-I covers foundations of risk management, quantitative analysis, financial risk and products, and valuation and risk models.
Part-II consists of market risk measurement and management, credit risk measurement and management, operational and integrated risk management, risk management and investment management, and current issues in financial markets.
Professionals
What do financial risk managers do?
Financial risk managers are professionals responsible for assessing and managing various types of risks faced by an organization using different financial instruments and hedging techniques.
They are also responsible for mitigating or lowering the risks by designing and implementing the organization's overall risk management policy.
FRM professionals are mostly employed by banks, financial consulting groups, large-size organizations, investment banks, government departments, and revenue services.
How?
How does FRM certification help Chartered Accountants?
FRM is an in-demand certification that is perfect for CA professionals who want to work in the risk management vertical.
The FRM course will provide candidates knowledge of financial mathematics and risk analysis and help them learn beyond Strategic Financial Management covered in CA Final.
The CA+FRM combination will add more value to a candidate's profile, giving them an advantage over their colleagues.