Financial Risk Managers (FRMs) are professionals who specialize in identifying, assessing, and managing any risks that may affect an organization, either currently or in the future.
They use financial modeling, data analysis, and other tools to identify potential risks and develop strategies to mitigate or manage those risks. The specific responsibilities of an FRM vary depending on the type of organization they work for, but common duties include:
- Analyzing financial data to identify and quantify potential risks
- Developing risk management strategies, policies, and procedures
- Monitoring and reporting on risk exposures
- Advising senior management on risk-related matters
- Participating in the development of risk management systems and processes
- Communicating with stakeholders, including investors, regulators, the board of directors, and the public about risk management issues
FRMs work in a variety of settings, including banks, investment firms, insurance companies, consultancies, and regulators. They also work in non-financial organizations that have significant financial risk exposures.