FRM worth it for investment analysts/managers not in risk functions?

[Mace]

Hi,

I work as an investment manager at an asset management firm and this summer completed my CFA charter, which was highly relevant and also valued by my employer. I'm now considering also signing up for the FRM tests because the curriculum looks interesting and I have some time on my hands next year. However, I fear that when the studying becomes intense I might lose motivation because I'm not sure I really need the designation. What do you guys think - is FRM worth it for people in investment management with no intention of moving into a risk function?

 

[Sergey Vorobyev]

Hi,

I think you don't need this charter. You will certainly learn a lot, but probably not exactly what you expect. Similar to you, I started this designation to improve my analysis, but I don't think it was very helpful. CFA exams were much more useful to me for this purpose (I passed CFA Level 2, and currently I'm waiting for FRM Part 2 results).

However, if you have some time, then why not. But these exams are quite difficult, so don't underestimate them.

 

[emilioalzamora1]

straightforward answer: yes, of course it is highly relevant and there is by far no other professional exam out there which offers continuously updated readings tailored to industry standards/requirements. It's superfluous even asking this kind of question. I would even say that anyone who works (has some sort of decisional power) in any field related to risk management topics should be obliged to undertake the FRM.

Happy to have my following viewpoint (from the investment management angle) disproved:

1. the CFA primarily gives you the tools to generate 'return'
2. the FRM primarily gives you the tools to minimise 'risk'

It has nothing to do whether you would like to take on a risk function within asset management or not, the FRM readings/exams should be a piece of the whole puzzle. Otherwise, I can't by no means see that the CFA as a stand-alone credential paves the way becoming a well-rounded/balanced asset manager. At best, to be a credible asset manager one should strive for the 'troika': CFA, FRM, CAIA.
In short, the FRM broadens the horizons; this is enough reason to undertake the FRM exam irrespective of your current role.

Risk Management topics are even more important nowadays than the CFA stuff which is undoubtedly heavily geared to accounting topics and as we all know: accounting is not finance!

To back this up: here is my favourite video about the FRM and which should be distributed to all those 'ignoramus' who have never heard about the high standards of the FRM: go to youtube > 'About GARP FRM'

 

[brian.field]

straightforward answer: yes, of course it is highly relevant and there is by far no other professional exam out there which offers continuously updated readings tailored to industry standards/requirements. It's superfluous even asking this kind of question. I would even say that anyone who works (has some sort decisional power) in any field related to risk management topics should be obliged to undertake the FRM.

Happy to have my following viewpoint (from the investment management angle) disproved:

1. the CFA primarily gives you the tools to generate 'return'
2. the FRM primarily gives you the tools to minimise 'risk'

It has nothing to do whether you would like to take on a risk function within asset management or not, the FRM readings/exams should be a piece of the whole puzzle. Otherwise, I can't by no means see that the CFA as a stand-alone credential paves the way becoming a well-rounded/balanced asset manager. At best, to be a credible asset manager one should strive for the 'troika': CFA, FRM, CAIA.
In short, the FRM broadens the horizons; this is enough reason to undertake the FRM exam irrespective of your current role.

Risk Management topics are even more important nowadays than the CFA stuff which is undoubtedly heavily geared to accounting topics and as we all know: accounting is not finance!

To back this up: here is my favourite video about the FRM and which should be distributed to all those 'ignoramus' who have never heard about the high standards of the FRM: go to youtube > 'About GARP FRM'

Fantastic perspective!

 

[Mace]

Thanks guys, highly appreciated!