DEFINITION of 'Financial Risk Manager - FRM'

A financial designation, obtained through the Global Association of Risk Professionals (GARP) by achieving a passing score on the Financial Risk Manager (FRM) examination, having an active membership in GARP and by having two years of experience in financial risk management.

The FRM program and exam, follows the major strategic disciplines of risk management: market risk, credit risk, operational risk and investment management.

BREAKING DOWN 'Financial Risk Manager - FRM'

Recognized in over 90 countries across the globe, the FRM designation, is designed to measure a financial risk manager's ability to manage risk in a global environment. The FRM exam is challenging, having a pass rate of only 44.35% in 2007.

RELATED TERMS
  1. Growth At A Reasonable Price - ...

    An equity investment strategy that seeks to combine tenets of ...
  2. Energy Risk Professional - ERP

    A professional designation awarded by the Global Association ...
  3. Professional Risk Manager - PRM ...

    A professional designation awarded by the Professional Risk Managers' ...
  4. Associate in Risk Management - ...

    A nationally recognized educational program for dedicated risk ...
  5. Country Risk

    A collection of risks associated with investing in a foreign ...
  6. Accepting Risk

    A risk management method used in the business or investment field. ...
Related Articles
  1. Personal Finance

    An Introduction To The FRM Designation

    Learn what steps need to be taken in order to obtain the Financial Risk Manager designation.
  2. Trading

    Forex Careers: 5 Professional Designations

    There are no strictly forex programs, but there are still some advanced education alternatives for forex traders.
  3. Managing Wealth

    Why Companies Need Risk Management

    Implementing risk management strategies can save an entire organization from failure. Is yours up to snuff?
  4. Personal Finance

    An Introduction To The CFA Designation

    The CFA designation is seen as the key certification for investment professionals. Find out what the CFA signifies for candidates and investors.
  5. Financial Advisor

    The Alphabet Soup of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  6. Financial Advisor

    The Importance of Healthcare Risk Management

    Risk management is especially important in healthcare because human lives might be on the line. Here are some strategies to map out a plan.
  7. Personal Finance

    Portfolio Manager: Job Description & Average Salary

    Discover the duties and responsibilities of a portfolio manager, along with education, training and skills requirements, and salary expectations.
  8. Personal Finance

    Getting Accredited For A Career In Credit Analysis

    We go through the education and certifications you need to join this growing field.
  9. Financial Advisor

    Man Group: Investment Manager Highlight (EMG.L)

    Learn more about Man Group, a London-based investment manager, and the four investment divisions that handle its product offerings.
RELATED FAQS
  1. Which popular professional certification exams do not require sponsorship?

    The Financial Industry Regulatory Authority (FINRA) administers several professional certification examinations that do not ... Read Answer >>
  2. What are the key differences between financial risk and business risk to a company?

    Understand the difference between a company's financial risk and its business risk, along with some of the factors that affect ... Read Answer >>
  3. What are the major categories of financial risk for a company?

    Examine four major categories of financial risk for a business that represent potential problems that a company may have ... Read Answer >>
  4. What is the difference between market risk and country risk?

    Learn about market risk and country risk, some examples of each and the main difference between these two types of risks. Read Answer >>
  5. What are the different sources of business risk?

    Explore the various sources of business risk for companies and learn how critical risk management is to a company's financial ... Read Answer >>
  6. What are the primary sources of market risk?

    Learn about market risk and the four primary sources of market risk including equity, interest rate, foreign exchange and ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center