How to Become a Good Financial Risk Manager
Most people are curious on what Financial Risk management is all about. Financial risk managers usually abbreviated as FRM, are individuals who work for a bank, insurance company and accounting firm with their main role being to assess risks. It is the responsibility of a Financial Manager to come up with long lasting solutions and avoid potential risks. Currently, the risks are many and varied. When with the right skills, a Financial Risk Manager will be able to avoid potential risks. What are the requirements of becoming a financial risk manager? Not many people have knowledge on what it entails to become a good Financial Risk Manager. Keep reading to understand more.
Your competency in the field must be displayed by your passing of an FRM exam. Part one and two form the FRM exam. The first part has one hundred questions with multiple choices. Each question accounts for one percent. You get your results after six weeks. Part one determines if you will do part two. It is important that you read more to be able to pass the first exam. Note that less than 50% of those doing the exam will pass. Seriousness with the FRM exam will then be required.
Once you have passed the first exam then you proceed to the second exam. Part two has eighty questions. Not all questions in part two have multiple choices. The two exams are six months apart. Part two is also done after you have received notification of your passing of part one. However, a relief comes in the fact that part two is much easier than part one. From the exam, you get knowledge and are able to apply critical thinking.
After the exam, you still need to gain two years experience in the risk field. From the actual field, you learn more on the skills that you already posses. Critical thinking will be needed and applied a lot in the field. There are a number of areas you can get employed in. Trade sector is one good example. From here you will be able to act as a risk consultant or even in the management. Your employment can also come from being a credit risk consultant.
Here you will provide consultation services to credit institutions. You can also act as a portfolio risk consultant to determine the risks involved in purchasing assets. Employment can also come from regulatory risks where you give businesses the correct guidelines to be followed. Know which websites will be useful. Pick a website with the necessary information. Have enough information on being a good Financial Risk Manager. Go online and check it out!