What is the Salary of a FRM in India? - Scope of FRM | Job Opportunities

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FRM Salary in India

By IIC Lakshya

13 May 2024

Others

FRM Salary in India

The Global Association of Risk Professionals (GARP) issues the Financial Risk Manager (FRM) professional designation. With their accreditation, FRM salary in India is quite satisfying andthere's a significant potential for further income growth in the future. FRM professionals dealing in financial markets globally recognize the GARP FRM accreditation as the premier certification. To earn the FRM certification, candidates must pass two rigorous exams which include Level 1 and Level 2 and also work two years in the field of risk management.

The salary for FRM in India varies depending on factors such as experience, location, and the employing organization's size and sector. FRMs (Financial risk managers) assess risk by studying the financial and overall ecosystem to analyze changes or trends. The main responsibility of a financial risk manager is to devise ways to mitigate the consequences of potential hazards such as insufficient contingency reserves, mismanagement of resources, a management reduction of the contingency reserves, and so on.

What is Financial Risk Manager (FRM) Salary in India?

The average FRM salary in India ranges between 9-12 lakhs per annum. However, the annual salary ranges from Rs. 18 LPA to Rs. 33 LPA based on work experience. These salary figures may vary and depend on the location of work or the size of the company. So let's know more about the salary of FRM in India and the expected salary for various job roles in FRM below:

1. Risk Qualification Manager:

A risk qualification manager is in charge of a company's risk management and insurance programs. They identify risks that could jeopardize the company’s security, safety, or financial success. 

Salary: Rs. 3 LPA–RRs. 30 LPA

2. Credit Risk Analyst:

Credit risk analysts are employed by investment firms, commercial and investment banks, credit card issuers and other lending and credit businesses. Using a variety of analytical methodologies, they assess company risks and hazards related to consumer lending.

 Salary: Rs. 2.4 LPA–RRs. 21 LPA

3. Operational Risk Analyst:

Insufficient resources and internal staffing concerns are the primary causes of operational risk in a company. The operational risk analysts identify the risk category and inform the organization’s senior management.

Salary: Rs. 3 LPA–RRs. 20 LPA

4. Operational Risk Manager:

To ensure compliance with regulatory requirements, an operational risk manager proactively recognizes and regulates current and potential risks through internal control measures and processes within client management.

Salary: Rs. 5.5 LPA–RRs. 30 LPA

Scope of FRM in India

Looking at the scope of FRM in India's financial landscape, which is becoming increasingly complex and highly integrated with global markets, it is not merely about wanting something from financial risk managers but rather a necessity. In one of the most vibrant economies in the world, companies are actively recruiting experts who can navigate through a sea of risks and uncertainties.

The demand and scope of FRM in India have been increasing over the last ten years. This advancement is fueled by regulatory stress as well as the organization's growing understanding of the value of danger monitoring.

As Indian companies look to increase their impact both locally and worldwide, the ability to predict, understand, and manage financial threats ends up being extremely important. The career opportunities and scope for FRM in India are expanding. So let's discuss some of the major job roles for FRM professionals in the finance sector below:

  • Risk Analyst:

These people mostly function in the direction of recognizing possible threats and then assessing them before using options to lower them.

  • Credit Risk Manager:

This individual's field of expertise is reviewing the possible risks of giving out money loans to customers or manufacturers.

  • Operational Risk Manager: 

Focuses on dangers mitigating from functional failings such as technological problems or human mistakes.

  • Market Risk Manager: 

Deals with dangers arising from market variations, such as interest rates or stock rate movements.

  • Regulatory Risk Manager: 

It ensures compliance with all economic guidelines, safeguarding against potential legal repercussions.

FRM vs CFA Salary

The finance business highly values the Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM) certifications, but it is important to note that they focus on different areas of expertise. Both CFA Salary and FRM salary are influenced by a variety of factors, including location, experience, and industry, among others; however, here is a rough estimate of what such qualified individuals can earn in India.

CFA Salary in India:

  • Newly certified CFA holders should expect entry-level salaries ranging between 6 and 10 lakh INR per annum.
  • Professionals with mid-level experience and CFAs earn between 10 and 20 lakhs annually.
  • The pay package for top executives or senior staff with many years of service plus specialization could start from 20 lakhs INR upwards.

FRM Salary in India:

  • Typically, fresh FRM employees take home salaries amounting to between 6 and 12 lakhs INR annually at entry-level positions.
  • Middle-level FRMs may earn an average of 12 to 20 lakh rupees per year.
  • Specialized roles within senior-level FRMs attract a salary exceeding 20 lakh rupees per year, whereas other ordinary positions receive only this much.

FRM Course Fee in India

The average FRM course fee in India varies between 30,000 and 1,00,000 INR; however, it differs in various states or locations based on different elements. Right here are those factors:

  • Course Provider:

Various institutions or training facilities offer FRM programs at different costs. Institutions with strong credibility or those offering additional student support services may charge higher fees than others.

  • Course Format:

The type of instruction can impact the price. In-person classes, for example, maybe more expensive due to facility costs, instructor fees, and other overheads, while online courses could be relatively cheap.

  • Study Materials:

Some course providers include study materials such as textbooks, practice exams, and online resources in their fee structure, while others might charge separately for these materials.

  • Additional Services:

Institutes may offer supplementary services like access to online forums, one-on-one tutoring, or mock exams. These extra services can add to the overall cost of the course.

  • Exam Registration Fees:

The Global Association of Risk Professionals (GARP) sets the FRM examination registration fee, but some course providers may include examination registration in their package, which could affect the total cost.

  • Institutions Reputation:

Institutes with a strong track record of success in helping trainees pass the FRM examination may charge higher fees due to their reputation and perceived value.

Conclusion

To sum up, obtaining the Financial Risk Manager (FRM) certification opens up a plethora of possibilities in risk management, which is full of modifications. The FRM designations assist specialists in determining, assessing, and managing various sorts of financial threats by supplying an extensive curriculum that not only boosts employability but also makes certain of the strength and soundness of financial companies.

If you're interested in moving your banking career forward, going into asset management firms, or even working as a consultant, then this is for you! Any employee, whether directly or indirectly involved with financial matters, will find it helpful to have acquired knowledge via these qualifications. Therefore, do not wait any longer, but start studying now.

We hope this article has provided valuable insights into Financial Risk Management and the FRM course details. While FRM offers rewarding career prospects, if you're seeking a broader scope in finance, consider pursuing the ACCA (Association of Chartered Certified Accountants) qualification. ACCA is globally recognized and offers diverse opportunities in accounting, finance, and business. If you're ready to embark on this journey, explore our ACCA course for comprehensive preparation.

Frequently Asked Questions: FAQs

  • Can an average student do FRM?

Certainly, yes. You can take the FRM examination along with passing it with flying shades also if you are typical in Mathematics. Although there are principles about calculus throughout the educational program, straight application of the devices of calculus entailing distinction or combination is never asked in the test.

  • Is FRM in Demand in India?

With modern technology quickly altering the face of financing and also brand-new fields arising that need durable threat administration, FRM specialists are ready to be in high need.

  • Who earns more FRM or MBA?

While the base pay for a monetary danger specialist is about INR 3.61 LPA, an MBA grad can anticipate an income bundle of INR 7.62 LPA. Seeking an FRM qualification is reasonably more economical than an MBA level.

  • How many FRM holders are there in the world?

The FRM educational program is integrated right into numerous " companion college" programs as well as syllabi. According to a January 2023 Press Release, there are 77,000 FRMs worldwide.

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