One of the underlying tenets of finance is the ever-true trade-off between risk and reward. For those looking to increase their potential rewards from an investment, the risks associated with the investment will increase, often at a greater rate. In the years leading up to the subprime mortgage meltdown of 2007-2008, investors, lenders and bankers all seemingly believed that the risks associated w🔯ith investments at that time had been far outweighed by the potentia♈l rewards that could be earned.

As we all know now, the risks were actually far greater than anyone could have imagined. To that point, 澳洲幸运5官方开奖结果体彩网:risk management has become a more important role in the world of finance and the 澳洲幸运5官方开奖结果体彩网:capital markets than it ever has been before. With many firms focusing their attentions on developing more and stronger 澳洲幸运5官方开奖结果体彩网:risk measures and teams, the field of risk management is becoming a more desirable, and consequently more competitive, field than ever before. More and more risk professionals are choosing to further their credentials by enrolling in the 澳洲幸运5官方开奖结果体彩网:Financial Risk Manager (FRM) designation.

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The Role
The FRM designation is a professional certification offered by the Global Association of Risk Professionals (GARP). The designation is viewed as the globally recognized 澳洲幸运5官方开奖结果体彩网:gold standard for risk professionals. Since its inception in 1997, the FRM designation has rapidly grown in popularity, with enrollment in the program increasing year after year, and exploding in the years following the global 澳洲幸运5官方开奖结果体彩网:financial crisis of 2008.

The improper handling of potential market and credit risks in the early part of the 21st century led to a huge demand for qualified risk professionals who were able to define a firm's risks clearly and accurately. Professionals holding the FRM designation are often viewed as some of the most qualified in the industry, which led to the enrollment boom.

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In order to obtain the FRM designation, candidates are required to meet two key requirements: Successfully pass two separate FRM exams, and complete a minimum of two years of full-time work experience in the field of 澳洲幸运5官方开奖结果体彩网:financial risk, or related areas. The work experience can be related to fields like 澳洲幸运5官方开奖结果体彩网:portfolio management, industry research, trading, faculty academic and risk consulting. Since the FRM designation relates primarily to the field of finance, only finance-related vocations are considered as acceptable work experience.

The Exam
The GARP curriculum requirement is generally the prerequisite that is of interest to potential candidates. Consisting of 澳洲幸运5官方开奖结果体彩网:two thorough four💙-hour examinations, satisfying the FRM curriculum requirement is no easy task. If Part I is not passed successfully, Part II will not be graded.

Consisting of 100 multiple-choice questions, Part I consists of four equally-weighted key topics: Foundations of Risk Management, 澳洲幸运5官方开奖结果体彩网:Quantitative Analysis, 澳洲幸运5官方开奖结果体彩网:Financial Markets and Products, and 澳洲幸运5官方开奖结果体彩网:Valuation and Risk Models. While most would think that the first of the two exams would be more entry level and "easier," this is not so. The pass rate for Part I has consistently been lower than Part II, suggesting that the material covered in Exam I is a difficult venture for most test-takers.

While Part II only asks test takers to answer 80 multiple-choice questions, it covers five distinct topic areas: 澳洲幸运5官方开奖结果体彩网:Market Risk Measurement & Management, 澳洲幸运5官方开奖结果体彩网:Credit Risk Measurement and Management, Operational and Integrated Risk Management, Risk Management and 澳洲幸运5官方开奖结果体彩网:Investment Management and Current Issues In Financial Markets. As is true for Part I of the exam, the questions posed to candidates are designed to incorporate a holistic assessment of the curriculum. By incorporating multiple topics in exam questions, the FRM exam is a thorough test of candidates' understanding of the material.

Career Opportunities
The payoff for candidates who successfully complete both the exam 𓂃and work experience requirements comes in the career opportunities available to FRM designation holders. The designation clearly identifies FRM holders as some of the most qualified in their industry. Having displayed the commitment and perseverance to complete the program, certificate-holders are able separate themselves from other risk professionals who lack the designation. In addition to the✃ curriculum and experience requirements, certified FRMs are expected to follow strict principles, which promote ethical conduct and behavior.

All these factors have led to certified FRMs being employed in the most prestigious major banking institutions, asset managers, accounting firms and government agencies in the world. Wi🙈th demand for qualified risk professionals expec♑ted to continue to grow in the future, FRMs will be in even greater demand in the industry.

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The Bottom Line
As mentioned above, becoming a certified FRM is not a venture that comes easily, but rarely are worthwhile undertakings achieved with lꦰittle effort. For risk professionals and those interested in working in the field of risk management, the FRM designation should be given consideration for those looking to expand both their career potential and knowledge of the industry.