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FRM Salary | India | USA | UK | Singapore | Top Employers

Updated on March 29, 2024
Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What Is FRM Salary?

The Financial Risk Manager exam is a globally acknowledged designation awarded by the Global Association of Risk Professionals (GARP), equipping professionals with financial risk assessment and management skills. The primary focus of FRM is helping professionals to be aware of the principles of managing market risk, credit risk, and liquidity risk along with non-market financial risks.

FRM Salary

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FRMs constitute an exclusive global community of nearly 30,000-dedicated GARP professionals, most of them working with several top employers in the financial industry. In addition, FRM-qualified professionals usually provided much better compensation than their non-credentialed counterparts, adding value to the designation.

FRM Salary Explained

The salary of FRM or Financial Risk Managers is very lucrative due to the high level of skill and exhaustive knowledge that the professionals possess. These professionals undergo rigorous training and detailed study in the field of financial risk and are entrusted with a lot of responsibility regarding the strategic management of risk in the field of finance.  

This designation is given by the Global Association of Risk Professionals (GARP), which has global recognition while dealing in the financial market. The exams involve rigorous study and preparation along with professional experience in utmost detail.

The FRM course salary earned by these risk management experts also depends on different factors like the location of the job, the type or level of clients they will handle, the type of responsibilities, their own experience and the sector they are in. On average, the salary structure is very competitive because of their expertise.

However, the compensation may keep changing due to continuous changes, upgradation, and innovation taking place in the financial market and the advent of new products for investment with lucrative returns, which obviously come with considerable risk. For this purpose, these professional always need to upgrade their knowledge and keep on learning so as to remain in the market for the long term.

Exhaustive information is readily available about the prerequisites, exam details, and exam preparation strategies for FRM. However, there needs to be more information on salary packages, bonuses, and overall trends related to financial compensation for FRM-qualified professionals. Therefore, in this article, we have solely discussed the monetary prize for the benefit of the readers.

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Significance of FRM Certification

Though we have already provided information in brief on FRM course salary, it is essential to look at the significance of this designation to know how well it helps shape a financial career that ultimately decides what compensation one receives.

  • FRM is a highly specialized risk management designation that helps acquire the necessary skills and knowledge in specific areas. This technical nature of the title makes it a potentially rewarding work designation considering financial growth.
  • Due to their high expertise and experience, they can be professional in whom individuals and corporates can depend for minimization of risk while planning for financial investment. They are reliable and can be entrusted with the power and authority to identify, plan, and control risk areas and make investments more profitable with good return expectations.  
  • It is a great profession for people who are inclined towards the financial market and have interest in exploring more, both the areas of return and risk and specialize in designing strategies and financial products that will stimulate money circulation in a healthy way.
  • Corporates and individuals who do not have so much knowledge and skill and will not be able to contribute much time in financial analysis get a chance to enter the market with the help of such experts and use their knowledge to gain expose in global financial environment.
  • These professionals are the path to growth and expansion of investment opportunities in an economy which ensures sustainability because finance is the backbone of every economy.

Thus, the above are some of the important significance of this profession both as a career opportunity and average FRM salary and the reason of its exponential growth in modern times.

Average Salaries In the US

The average salary for a financial risk manager is $102,393 in the US.

FRM Certification Salary 2021

source: Payscale

FRM Salary Ranges by Career Role in the US:

  • Risk Analyst: Average annual salary stands at $78,000
  • Credit Risk Manager: Average annual salary – $93,000
  • Vice President, Finance: Average annual salary – $128,000
  • Quantitative Analyst: Average annual salary – $98,000
  • Financial Analyst: Average annual salary – $59,000
  • Chief Risk Officer (CRO): Average annual salary – $200,000

Average Salaries In The UK

The average wages for financial risk managers in the UK are £62,149.

FRM Salaries in the UK

source: Payscale

FRM Certification Salary Ranges by Career Role in the UK:

  • Risk Manager: Average annual salary stands at £56,000
  • Risk Analyst: Average annual salary – £40,000
  • Credit Risk Manager: Average annual salary – £65,000
  • Quantitative Analyst: £63,000
  • Risk Management Analyst: £46,000
  • Chief Risk Officer (CRO): £126,000

Average Salaries In Singapore

The average salary for a financial risk manager in Singapore is S$95,394.

FRM Salary - Singapore

source: Payscale

FRM Salary Ranges by Career Role in Singapore:

  • Risk Manager: Average annual salary stands at S$113,000
  • Risk Analyst: Average annual salary – S$45,200
  • Credit Analyst: S$65,200
  • Quantitative Analyst, Risk: S$85,000
  • Business Analyst, Finance/Banking: S$78,000
  • Credit Risk Analyst: S$69,000

Average Salaries In India

The average salary for a financial risk manager in India is ₹1,174,397.

FRM - Salary - India

source: Payscale

FRM Certification Salary Ranges by Career Role in India:

  • Risk Analyst: Average annual salary – ₹5,90,000
  • Senior Risk Manager: Average annual salary stands at ₹20,00,000
  • Risk Manager: Average annual salary stands at ₹10,00,000
  • Credit Analyst: Average annual salary stands at ₹8,00,000
  • Credit Manager: Average annual salary stands at ₹8,60,000
  • Chartered Financial Analyst (CFA): ₹ 7,00,000

Geographically, FRM-certified professionals might explore the best professional growth opportunities in the US, UK, Hong Kong, Singapore, China, and other locations. For example, it may not be easy to identify the average FRM salary or compensation a financial risk manager earns as it depends on various relevant factors, including the financial risk manager’s industry experience. Academics also play a role in deciding the earnings of a professional.

Comparing the FRM certification salary from Indeed.com provides us the different figures. The compensation can vary in the average salary for the job that matches the keyword “FRM.” That means that these are salaries offered for new job posts, not risks managers earn in their current careers.

FRM Salary - Indeed.com

Other factors that might influence remuneration could include geographical location and an employer’s size, among other things.

Famous Career Roles

Some prominent roles fit FRM certified professionals, including specialized financial managers, financial analysts, or related career positions.

These roles are: –

  1. Financial Manager.
  2. Risk Qualification Manager.
  3. Corporate Risk Director.
  4. Risk Management Analytics Consultant.
  5. Regulatory Risk Analyst.
  6. Analytics Client Consultant.
  7. Operational Risk Analyst.
  8. Credit Risk Specialist.
  9. Enterprise Risk Manager.
  10. Large Enterprise Commercial Risk Manager.

Each career role offers varied work opportunities, remuneration, and growth prospects, which differ significantly. That majorly depends on the employer and the growth prospects available to an individual. Next, let us understand what employers root for FRM-certified professionals and why.

What Kind of Employers Look for FRM Professionals

As we have already discussed, FRM is more of a specialized certification, aimed at helping professionals acquire an in-depth understanding of various forms of financial risks, including potential credit risk, operational risk, liquidity risk, market risk, and non-market financial risks. One must remember that financial institutions and banks deal with these troubles regularly, which is why they are always looking to hire professionals with the requisite knowledge and skill set, and preferably FRM, a risk management credential. Moreover, risk management has acquired a whole new meaning in the post-2008 era on a broader level. As a result, banks and financial institutions realized things might rebound despite the best financial management capabilities and underlying risks needing to be managed with a higher level of finesse.

Unsurprisingly, banks and financial institutions are almost forced to reassess their priorities and give risk management its rightful place under the sun. As a result, the demand for risk management professionals is rising, and most high-profile employers prefer to hire accredited professionals. That is because they enjoy a higher level of credibility in their eyes. FRM is a specialized credential whose value has naturally gone up with time. Some of the top employers for FRM include asset management firms, investment banks, government agencies, corporations, global financial services firms, and auditing firms.

Top FRM Employing Industries

Here is a list of the leading industries which employ FRM certified professionals: –

  • Investment Banks
  • Commercial Banks
  • Central Banks of Countries
  • Asset Management Companies
  • Insurance Companies
  • Credit Rating Companies
  • Government and Regulatory Agencies
  • Consulting Firms
  • Hedge Funds
  • Professional Service Firms

Top FRM Employers Across Industries 

The top employers from different industries regularly employ FRM-certified professionals for their risk management capabilities are:-

S. No. Top Companies Top Global BanksTop Global Hedge FundsTop Global Asset Management FirmsTop Global Insurance Companies
     1.ICBCICBCBridgewater AssociatesBlackRockAXA Equitable
     2. HSBCChina Construction Bank CorporationMan GroupSSgAAllianz
     3. Bank of ChinaJPMorgan Chase & CoBrevan Howard Asset ManagementFidelity InvestmentsMetlife Inc.
     4. PwCBank of ChinaOch-Ziff Capital Management GroupVanguard GroupPrudential
     5. UBSHSBC HoldingsBlueCrest Capital ManagementJ.P. Morgan Asset ManagementAIG
     6. CitiWells Fargo & CoJ.P. MorganPIMCOGenerali Group
     7. KPMGAgricultural Bank of ChinaCredit SuisseBNY Mellon AssetLegal & General Group
    8. Agricultural Bank of ChinaBNP ParibasBlackRockCapital Research & Management CoAviva
    9. Ernst & YoungBanco SantanderAmundiManulife
  10. Deutsche BankGoldman SachsGoldman SachsAEGON
  11. Standard Chartered BankCitigroupPrudential FinancialCNP Assurances
  12. Credit SuisseItaú Unibanco HoldingDeutsche Asset ManagementBerkshire Hathaway
  13. DeloitteBanco do BrasilAXA Investment ManagersZurich Insurance
  14. JP MorganBarclaysBNP ParibasPing An
  15. BarclaysMitsubishi UFJ Financial GroupLegg Mason Inc.
  16. SamsungBanco BradescoFranklin Templeton Investments
  17. INGCrédit AgricoleNorthern Trust
  18. Bank of CommunicationsSumitomo Mitsui Financial GroupWellington Management
  19. Bank of AmericaBanco Bilbao Vizcaya ArgentariaInvesco
  20. BBVAUBSMetLife Inc.
  21. Westpac Banking Corporation
  22. Groupe BPCE
  23.  Sberbank of Russia
  24. Bank of Communications
  25. Société Générale

FRM certified also recruited by top Global Professional Service Firms including PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young, and KPMG.

FRM offers some of the most pleasing career prospects and growth opportunities immense depending on the skillset, knowledge, academics, and professional experience of a professional and according to that depends the FRM holder salary.

The most critical question is how to utilize the FRM salary information for professionals made available here or elsewhere. The whole point of the discussion is that before choosing FRM as a certification program, it is essential to understand what career prospects might offer. Significantly, if one has planned the career role, they are preparing; this specific information can help decide: If FRM is a suitable choice of certification to prepare for a particular position or career and what sort of remuneration one might expect on completion of the certification program. These can be useful pointers and directly impact the choice of career path and certification, which usually go hand in hand.

In general, higher academics and a fair amount of professional work experience are prerequisites for a successful career and FRM holder salary in financial risk management and related roles after completing FRM.

Reader Interactions

Comments

  1. Jeffrey Almeida says

    Thanks a lot for giving a detailed article on FRM Salary. This has really helped me a lot and was quite helpful also. Al though I have a small question. Is that necessary to have work experience before giving the FRM Exam?

    • Dheeraj Vaidya says

      Thanks and I am very happy that this helped you. There is no educational or professional prerequisites to sit for either part of the FRM Exam. All the Best!!

  2. Peter Gomes says

    Thanks for providing such useful knowledge on FRM through your blog. I found all of the things which I want to know it may be about finance or any other related field; I can find it here on your website thanks and keep on writing. I do have a small question. And the question is Can I register to sit for the FRM Part 1 and Part 2 on different dates?

    • Dheeraj Vaidya says

      Many Thanks. I am glad you found my website useful. Well, the answer for your question is actually NO. First, you need to understand that a candidate can only register for FRM Part 2 Exam only after they have passed Part 1 exam successfully. There is also another way i.e you can register to sit for both the parts on the same day. Hope this helps.

  3. Sarvesh Mopkar says

    Can a CFA do the job of an FRM ? If yes, why would anyone hire an FRM ? Any more specific distinguishing features?

    • Dheeraj Vaidya says

      It is not necessary that CFA charterholders should be able to do the job of an FRM. FRM is all about in-depth risk analysis (while CFA doesn’t touch risk is detail).

  4. obulreddy says

    what are qualification for doing frm

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