The FRM designation is prestigious and renowned as the gold standard in the risk management domain. The designation opens up a plethora of opportunities across various risk categories. In this article, we are going to get an insight into the possible career options for FRM charter holders specifically in the Credit risk & Market risk domain.

Career Pathways for FRM Charter- Roles and Responsibilities  

1.Credit Risk Analyst

A credit risk analyst determines the creditworthiness and risk profile of an individual or business by analysing their financial data and deciding whether or not to extend them credit. 

Responsibilities 

1. Routinely monitor Loans for compliance. 
2. Examine Financial transactions and credit history case by case.
3. Check Adherence to Credit Policy and guidelines. 
4. Monitor Credit Quality for Portfolios and update them over a regular Interval.  
5. Assess the Creditworthiness of existing or prospective clients.    

FRM leverage – An edge

With the FRM charter under the belt, the Charter holder is already distinguished amongst other applicants and the designation is proof of your “exceptional knowledge and superior risk management understanding”. 

The updated knowledge and exposure to various Credit risk management techniques further give you an advantage. Understanding Var, Credit Risks models such as the Vasicek model, CreditMetrics model, and other metrics gives a competitive edge that demonstrates your exceptional skill and knowledge gained during the learning process. When this specialised knowledge is backed up with great technical skills, the outputs are highly reliable.  

Most often Lending decision analysis is highly technical with lots of parameters involved that need surgical anatomy [analysis produced using specialised knowledge] to get relevant output that impacts credit decisions. The FRM training program is highly beneficial in this regard.

2. Market Risk Analyst 

Market risk analysts use their knowledge of an industry or sector to research market trends and provide companies or investors with a comprehensive market assessment. The company or investor then uses this information to make decisions about investments and future ventures. 

Responsibilities

1. Market risk analysts review statistics, develop risk management systems, consult with securities traders, and present the results of their research. 
2. Monitoring Market trends and preparing reports on Risk exposure.

FRM leverage – An edge 

Market risk analysts need to have strong analytical and technical skills, also they need to understand complex financial data, and using relevant methodologies an output is deduced. FRM curriculum provides correct guidance in this way as technicalities are discussed in a detailed manner.

The FRM curriculum covers Var Mapping, Backtesting Var, Parametric & Non-Parametric approaches which are highly technical aspects that are quite relevant topics in terms of Market risk. With a grasp of such advanced concepts, the Market Risk practitioner/professional comes up with high-quality technical analysis which is relevant to understand the impact of systematic risk at play.

Experience in software development tools like VBA, Java, C++, SQL, R, and Project management tools (Tableau, MS Project, etc.) complemented with FRM designation gives an edge over conventional pathways (into Market risk) in terms of better prospects and performance. 

Conclusion 

The FRM charter is quite relevant for anyone who is already in the risk space and needs to advance their career by getting in-depth of the domain, also in the context of an aspirant who wishes to make their career in the risk space, the FRM designation is bound to give skills and knowledge not just to make an entry in the risk space, but also ensure they become exceptional risk managers.