Risk Managers - PRM or FRM?

[Skyline_Addict]

Hi Guys,

I work in the Financial Services industry and am looking into obtaining one of these designations as part of my career progression within the company and industry. I will be specializing in a Risk Management role.

For those of you who have taken, will be taking or are Risk Managers, what are your views on the two designations? PRM and FRM appear to be the only two outstanding benchmarks in this area.

What led you to choose one over the other and why? I have done background research on each designation and am aware of the major similarities and differences between both. I also know in generality how each stands (and can be complimented by) in the Financial Services industry to more "matured" and "recognized" designations like the CFA, CAIA, etc. I do not currently carry any designations beyond my undergraduate degree in Economics.

I'm looking for more industry, geographic (as in local), etc. specific opinions if possible.

Thanks

[jwslam]

Bump from the dead.

Does anyone currently hold / recommend an FRM designation?

[birdman86]

I know nothing about them but when I was doing the CFA exams I used analystforum.com, they focus on financial designations there. Might be helpful.

[BandW]

Did you do honors econ?

[Marsh]

I know quite a few people who have FRM as I used to work in risk myself. It's a great designation to have for Risk professionals, viewed quite highly. If you plan on being in Risk your entire career, I think it is a must have. That being said, if you are in Risk/looking to move to risk but might end up in other finance areas at some point in your life, it may not be that great to get because you'll kind of be viewed as a risk person/specialist and may find it hard to move to other areas, in which case CFA or some other designation might be your best bet.

Hope that helps

[jwslam]

Hmm thanks marsh

That's a lot to ponder on. I'm currently in risk but not the money kind. I thought it would be a good idea to venture out on a limb, plus there's no requirements to maintain the designation lol which makes it appealing to me.

[bcylau]

I have a FRM and almost a CFA . OP or others, PM me if you want more specifics, some things are better said in private.

In general, FRM is gaining traction over PRM in recent years, mainly due to FRM is a far more organized body than the PRM group. Also, due to the way the exams are administered, it is easier to get PRM than FRM.

The material covered in FRM and CFA barely overlap. It is especially true for the risk management part. So if you set to do risk management, then FRM is a far better choice. With a CFA I would assume you have minimal risk management knowledge, while decent level of basics with a FRM. However, CFA is far better for general investment/ finance roles. Risk has growth potential, but its kinda a thankless job.

Overall, I would recommend FRM, if nothing to distinguish yourself from the pack.

[Marsh]

Originally posted by bcylau
I have a FRM and almost a CFA . OP or others, PM me if you want more specifics, some things are better said in private.

In general, FRM is gaining traction over PRM in recent years, mainly due to FRM is a far more organized body than the PRM group. Also, due to the way the exams are administered, it is easier to get PRM than FRM.

The material covered in FRM and CFA barely overlap. It is especially true for the risk management part. So if you set to do risk management, then FRM is a far better choice. With a CFA I would assume you have minimal risk management knowledge, while decent level of basics with a FRM. However, CFA is far better for general investment/ finance roles. Risk has growth potential, but its kinda a thankless job.

Overall, I would recommend FRM, if nothing to distinguish yourself from the pack.

Some great points here as well. Personally, I think risk management is one of the few areas in finance that is going to grow alot in the coming years. Not just in finance, but in most organizations people are realizing there is a great need for risk professionals and specialists. Like mentioned, it is a thankless job but I think it is an area that is going to have a great deal of growth, and if you set yourself up to be a risk "expert" I think you could do very well for yourself, career wise and financially.