Did you know that the average salary for a risk manager in the USA in 2020 was over $112,000?
As long as there are companies that are driving to expand and undertake projects, there will also be risk managers. Risk managers are vital to companies that want to develop new products and services while being aware of the consequences of their actions.
If you are looking for a stable career and want to achieve financial risk manager certification, what do you need to know? How can you prepare?
Why not check out our in-depth guide to find out.
Plan and Prioritize Your Study
The first step in preparing for any exam or test is to create a study plan. If you are not experienced in preparing your own plan, do not fear. you can actually purchase Financial Risk Management (FRM) study packages.
These ready-made plans will provide a schedule that you can follow to ensure that you maintain a consistent pattern of study in the months before your exam.
If you would like to learn more effective ways to plan your study time, research, and find examples of those who are successful students. Follow the techniques that they applied.
While you can benefit from last-minute cramming for some exams, this is not the case with FRM examinations. With up to 240 hours of preparation needed, it is vital to start early and avoid procrastination.
Once you have registered for the exam, you should hit the books and follow the study course you have planned. While using past exam questions is important, you should try to grasp the concepts involved in risk management.
The test will require you to show that you can do more than remember facts. You will be asked to apply principles to solve problems. This means that a deep understanding of necessary concepts will be required to give convincing answers.
Familiarize Yourself with Key Topics
Likely from your research, you have learned that the FRM exam consists of 2 parts. The first part incorporates 100 questions and will focus on the following subjects:
- Foundation risk management subjects
- Quantitative analysis of risk
- Financial markets and product evaluation
- Valuation and risk theory
In the second part of the exam, the 80 questions could focus on the following subjects
- Market risk management
- Credit risk management
- Operational risk
- Liquidity management
- Investment management
- Current financial markets
As mentioned, it is necessary to be able to explain aspects of each concept. This large amount of study material explains why we recommend starting early and planning your time and preparation meticulously.
How to Achieve Financial Risk Manager Certification and Much More
If you have set the goal of financial risk manager certification, you may seem to have a large amount of preparation and study ahead of you. However, by prioritizing your studies and identifying your weaknesses, you will be able to achieve your goals.
If you are interested in learning more about risk management, project management, or other educational opportunities, then why not check out our other articles. We gather information on the most relevant subjects and publish it to our readership. Take a look to see how we can help you today.