Financial Risk Management may be appropriate if you want a challenging job with a hefty salary package. Financial Risk Managers (FRMs) assess dangers to an organisation’s assets, earning capability, or success. They may work in banking, financial services, loan origination, trading, or even marketing.
The average salary of a Financial Risk Manager in India is Rs.9.1 LPA. However, the annual salary ranges from Rs.3 to Rs.24 LPA based on work experience. The average FRM salary in India per month ranges from Rs. 66,130 – Rs. 67,821.
Who is a Financial Risk Manager?
Financial risk management involves preserving a company’s economic value by utilising financial instruments to control exposure to financial risk – primarily operational risk, credit risk, and market risk.
Financial Risk Managers assess risk by studying the financial and the overall ecosystem to forecast 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.
Salary by job roles in financial risk management
Here’s a list of the various job roles in FRM and the salary you can expect:
1. Risk Qualification Manager
A Risk Qualification Manager oversees the risk management and the insurance program of a company. They identify risks that could jeopardise the company’s security, safety, or financial success.
Salary: Rs. 3.0 – Rs. 24.0 LPA
2. Credit Risk Analyst
Credit Risk Analysts are employed by investment firms, commercial and investment banks, credit card issuers, rating services, and other businesses in the lending and credit sectors. They assess company risks and hazards related to consumer lending using several analytical methodologies.
- Salary: Rs. 2.4 – Rs. 18.5 LPA.
3. Operational Risk Analyst
Insufficient controls and internal concerns with staffing are the primary causes of operational risks in a firm. The Operational Risk Analysts identify the risk category and inform the organisation’s senior management.
- Salary: Rs. 4.5 – Rs. 10.1 LPA.
4. Operational Risk Manager
To maintain compliance with regulatory requirements, an Operational Risk Manager ensures that current and possible risks are proactively recognised and regulated through internal control measures and processes within client management.
- Salary: Rs. 4.9 – Rs. 29.5 LPA.
FRM Salary in India by Experience
The salary for a job role changes by the years of experience, and so is the case for the FRM Salary in India. A variety of things determines a person’s wage. Most companies will look at the typical compensation rates for the position they want to fill first. Then they’ll analyse how many people with the relevant skills apply for the said position.
The table below summarises FRM salaries by the years of experience a candidate has:
|Years of work experience||Average Salary|
Top Companies hiring Financial Risk Managers
Every company needs a Financial Risk Manager as there is cash inflow in every business, big or small. Financial Risk Managers are in charge of determining the risks and evaluating the dangers that could endanger a corporation’s finances. Almost all companies today have a financial risk management department. Here’s a list of some globally-renowned organisations hiring Financial Risk Managers:
- Pricewaterhouse Cooper(PWC)
- EY(Ernst & Young)
- J.P Morgan
- Wells Fargo
- Goldman Sachs
- Bank of India
- Bank of Baroda
- Axis Bank
- Reserve Bank of India
You might have noticed that the FRM salary in India for freshers is not high at first but gets better as you gather years of work experience. You can get a higher starting package by certifying yourself in this field. A Chartered Finance Analyst is one of the most prestigious certifications one can have as a Financial Risk Manager. You must try to certify yourself as a CFA (Chartered Finance Analyst) to validate your skills and increase your chances of receiving a high salary from companies.
The demand for FRMs in the corporate sector has been rising for a while now and is bound to go higher. Financial risk management pays a hefty salary to those who are good at it. Most FRMs are certified as a CFA (Chartered Financial Analyst) or have some kind of relevant global certification.
If you want to venture into financial risk management, you should consider giving the Chartered Financial Analyst course at Zell Education a shot to boost your career growth. We at Zell Education take care of everything you need to be a successful Financial Risk Manager. Contact us to learn more about the courses we offer.
What is the salary of FRM?
The salary of an FRM (Financial Risk Manager) ranges from Rs. 3.0 - Rs. 24.0 LPA with an average salary of Rs.9.1 LPA.
Does FRM increase your salary?
Yes, Financial Risk Managers are in high demand and must have some sort of certification to land a job in financial risk management. The average salary as an FRM in India is higher than the national average salary (Rs. 4.11 LPA)
Is FRM or CFA better?
Both titles are acknowledged worldwide, and none is superior to the other. They are just distinct. While the CFA qualification has a broader scope, primarily focusing on investing, FRM involves analysing and managing an organisation's financial risks.
Are FRMs in demand?
Yes, definitely. Organisations are searching for certified experts as the financial business expands. More and more organisations are competing with one another to hire certified FRMs.