Financial Risk Management

Financial Risk Management Learn path Long term financial gains come with their own share of risks for which risk management is implemented. Now if you’re wondering where to start to enter this field and what a career looks like in this field, this learn path shall guide you through. However this is a synopsis of our detailed learn path the details of which are at the end of this.

What is financial risk management?

Financial risk management, finance course is risk management in financial institutions where the potential risk is assessed with a particular business decision by a firm followed by coming up with the best approach for risk minimization. Financial tools and analysis are used to tackle various kinds of risk. However there are majorly four kinds of risks in the financial sector- credit risk, market risks, operational risk, liquidity risk.

Top career prospects: Following job roles are most common in this career: 1. Risk analyst or Risk manager 2. Credit risk analyst 3. Market risk analyst

Top skills required in FRM: Contrary to popular belief that FRM professionals only need soft skills, they need to master more comprehensive and compound skills. To help you get well versed with these skills, we have divided this segment into 2 partsA. Soft Skills B. Technical skills - Beginner - advanced

Soft skills- need to be amassed to head towards a career in this field. Let us look at some vital skill sets to have:

➢ Problem solving skills: This career demands strong business sense and the capability to come up with strategies and solutions to cope with risks. So an FRM professional needs to have good problem solving skills. ➢ Analytical skills: Risk management professionals analyze data to forecast risks. To be able to do that one must have good analytical skills. They need to be forward thinking and use the latest tools to adapt to the changing environment. ➢ Negotiation skills: Negotiation skills are the most desirable skills to have. To be able to persuade can transform a problematic situation into profit. ➢ Planning & organizing skills: This skill set is required as a financial risk manager has to take up a plethora of tasks, so he/she should be able to plan his tasks systematically and organize them. Moreover an organized manager can anticipate changes and potential risks before time, thus avoiding them in time. ➢ Leadership: You need to have leadership skills in order to manage tasks like a pro.

Having adequate skills to command the boardroom of stakeholders can prove beneficial.

Technical skills- Here are some of the prerequisite technical skills from beginner to advanced not only for those who are starting out but also for those who want to speed up their career:

1. Beginner level: ➢ MS Office- It is important to be comfortable with MS office tools such as excel, powerpoint, word etc as this job role involves using these tools on a daily basis.

How to learn If you’re not proficient in using MS Office or especially MS Excel, you can opt for online courses to grasp this skill. Here are some suggestions for the same ●

Data Analysis with Excel for Complete Beginners Provider: Future Learn, Price: Subscription-based, Duration: Approx. 2 months, Level: Beginner

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Advanced Excel Course: Best Advanced Excel Training & Certification Online by Henry Harvin Provider: Henry Harvin, Price: ₹7,500/- ($97), Duration: 24 Hours, Level: Intermediate

➢ Project management- It is necessary for professionals in this field to be able to multitask while ensuring timely outputs which is why companies look for people who are good project managers.

How to learn If you don’t know anything about project management or are looking to enhance your skills, then here are some courses that can be of help ●

Google Project Management: Professional Certificate Provider: Coursera, Price: ₹2,190/- ($28), Duration: 3 Months, Level: Beginner

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Certified Associate in Project Management (CAPM)® Certification Training by Henry Harvin Provider: Henry Harvin, Price: ₹7,500/- ($97), Duration: 24 Hours, Level: Intermediate

➢ SQL- Structured Query Language is one of the most popular languages used for manipulating data from a database. As risk managers deal with data, they must know how to use database tools.

How to learn The skill of language proficiency is one of the most important for professionals to work in this field. Following are some course suggestions to get started ●

SQL Essentials Training & Certification Provider: Edureka, Price: ₹6,799/- ($87), Duration: Self paced, Level: Beginner

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Learn SQL (Nanodegree Program) by Udacity Provider: Udacity, Price: ₹31,978/- ($412), Duration: 2 Months, Level: Beginner

➢ Financial acumen- A risk manager needs to have expertise in handling financial indicators linked with a firm's assets, platforms, markets, regulations etc.

How to learn The two core main domains used in risk management are financial modeling and financial analysis. The courses listed below helps in specialising in this domain ●

Finance & Quantitative Modeling for Analysts Specialization Provider: Coursera, Price: ₹8,653/- ($111), Duration: 3 Months, Level: Beginner

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Financial analysis with KPMG Provider: Imarticus Learning, Price: ₹58,000/- ($747), Duration: 3 Months, Level: Advanced

➢ Business analytics tools- A risk manager needs to be proficient in analytic tools such as tableau, MATLAB and SAS. How to learn There are plenty of courses available online; however, the following are the top courses picked by experts ●

Tableau Certification Training Course Provider: Intellipaat, Price: ₹19,893/- ($256), Duration: 1 Month, Level: Beginner

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Practical Data Science with MATLAB Specialization Provider: Coursera, Price: ₹5,367/- ($69), Duration: 3 Months, Level: Beginner

2. Advanced: ➢ Data modeling- It is the process of creating a conceptual representation for how data will be stored in a database. Professionals use this skill to strategize about risk minimizing methods.

How to learn Though candidates can find several courses online to learn data modeling, the following are the top two courses ●

Data Modeling in Power BI Provider: DataCamp, Price: Subscription-based, Duration: 4 Hours, Level: Intermediate

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Data Modeling Course Provider: EDUCBA, Price: ₹4999/- ($64), Duration: Approx 2 months, Level: All levels

➢ Data analytics- Professionals need to analyze data in order to predict the potential risks that they might have to face. Thus data analytics assists the firm to understand the forthcoming risks and take actions accordingly.

How to learn This career demands professionals to upskill themselves by gaining relevant skills like data analysis. Following are the top two courses to get certified ●

Data Analysis and Visualization with Power BI Provider: Udacity, Price: ₹58,257/- ($750), Duration: 3 Months, Level: Intermediate

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Data Analytics Using R Course by Henry Harvin Provider: Henry Harvin, Price: ₹15,000/- ($193), Duration: 8 Hours, Level: Intermediate

➢ Budgeting- Budgeting skills help in taking better business decisions and excel in the job role as the budget allocates sufficient resources to handle the most critical risks.

How to learn To enhance the budgeting skills, below are some top recommendations to expand their skill level ●

Financial Analysis for Business Performance: Planning, Budgeting, and Forecasting Provider: Future Learn, Price: Subscription-based, Duration: 1 Month, Level: Beginner

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Budgeting and forecasting course Provider: CFI, Price: ₹10,170/- ($131), Duration: 7 Hours, Level: Intermediate

➢ Quantitative risk analysis- Expressing enterprise risk into numerical terms is called quantitative risk analysis. It helps in forming strategic goals and decision making.

How to learn To have proficiency in quantitative risk management and technologies like R and Python, these are some of the best courses available online ●

Quantitative Risk Management in Python Provider: DataCamp, Price: Subscription-based, Duration: 4 Hours, Level: Intermediate

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Quantitative Risk Management in R by DataCamp Provider: DataCamp, Price: Subscription-based, Duration: 5 Hours, Level: Intermediate

➢ Data integration/extract, transform and load (ETL)- The ETL enables the collection of data from various sources into one data source, ready for analysis.

Since FRM has a constant linkage with data analytics, one must be good at data integration as well.

How to learn Acquiring this advanced skill could help professionals in grabbing high-level positions. Below mentioned are the top course suggestions for learning ETL ●

ETL Tools Training Provider: IntelliPaat, Price: ₹62,643/- ($ 807), Duration: 146 Hours, Level: Beginner

Conclusion: Currently risk management is emerging as one of the most trending career paths and is providing job prospects more than it ever did in the past. The role is broadening and becoming more strategic. The risk professionals need to be communicators , influencers and technical experts.

We have a lot of learn paths which you can explore from our advice page.

To learn more about the skills, Enroll today in the best available and highly curated courses in Finance.

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