FRM Salary in India | 2024 Guide to Earnings & Career Growth
FRM Salary in India: Complete 2024 Breakdown and Earning Potential
FRM salary in India has become a significant point of interest for finance professionals, particularly those pursuing careers in risk management. The Financial Risk Manager (FRM) certification is highly regarded across the globe, and in India, it opens doors to lucrative roles in banking, investment firms, and corporate finance. Understanding how much you can expect to earn as an FRM-certified professional in India can help you make informed decisions about your career.
In this blog, we’ll explore the average salary of FRM professionals in India, the factors influencing compensation, and how earning an FRM certification can enhance your career trajectory.
Average FRM Salary in India (2024)
The salary for FRM-certified professionals in India varies depending on experience, location, and industry. On average, FRMs in India earn between INR 6 lakhs and INR 20 lakhs per annum, with senior professionals earning significantly more. Here’s a breakdown:
| Experience Level | Average Salary (INR) |
|---|---|
| Entry-Level (0–3 years) | 6–10 Lakhs |
| Mid-Level (3–7 years) | 10–15 Lakhs |
| Senior-Level (7+ years) | 15–25 Lakhs or more |
Key Salary Highlights:
- Entry-level FRM professionals earn around INR 6-10 lakhs annually, depending on the industry and location.
- Mid-level professionals with 3 to 7 years of experience can expect salaries between INR 10-15 lakhs.
- Senior professionals with over seven years of experience or in leadership roles often earn INR 15-25 lakhs, and in some cases, more than INR 30 lakhs annually.
Factors Affecting FRM Salary in India
Several factors influence the FRM salary in India, from the industry you work in to your location and job scope. Let’s break down the key elements:
Industry
Salaries can vary widely depending on the industry in which you work. Banking, insurance, and investment firms generally offer the highest compensation for risk management professionals.
- Banking and Financial Services typically offer higher salaries, and major private banks and multinational financial institutions provide competitive packages.
- Investment Firms and Hedge Funds: Salaries in these sectors tend to be higher, especially in top-tier companies.
- Insurance: Risk management roles in insurance companies also offer attractive packages, though slightly lower than banking. (Pawha & Kamthania, 2019).
Job Role and Specialization
Different job roles within risk management have different pay scales. Depending on the complexity and responsibilities of the role, a risk analyst might earn less than a chief risk officer (CRO). (Glinskaya & Lokshin, 2005).
- Risk Analyst: INR 6-12 lakhs annually.
- Market Risk Manager: INR 12-18 lakhs annually.
- Chief Risk Officer (CRO): INR 25-40 lakhs annually.
Location
Where you work also impacts your salary. Major financial hubs like Mumbai, Delhi, and Bengaluru typically offer higher salaries than smaller cities.
- Mumbai: Salaries range from INR 8-20 lakhs for mid-level roles.
- Delhi NCR: Offers competitive salaries, especially in the corporate finance and banking sectors.
- Bengaluru: Known for a booming tech and financial market, salaries here are similar to those in Mumbai.
Experience
Experience is a significant factor in salary determination. The salary increases significantly as an FRM professional gains more experience and moves into leadership roles.
- Entry-Level (0-3 years): INR 6-10 lakhs.
- Mid-Level (3-7 years): INR 10-15 lakhs.
- Senior-Level (7+ years): INR 15-25 lakhs or more, depending on the role.
Top Industries for FRM Professionals in India
FRM professionals can find high-paying opportunities across various industries. The demand for risk management expertise is growing in:
- Banking and Financial Services: Banks offer some of the highest salaries for FRMs due to their increased focus on regulatory compliance and risk mitigation.
- Insurance: Companies need risk managers to help assess and mitigate claims, underwriting, and investment risks.
- Investment Management Firms: FRM professionals help manage and assess risks for hedge funds, mutual funds, and private equity firms.
- Corporate Risk Departments: Large corporations, especially in sectors like IT, energy, and telecom, employ FRMs to manage operational and financial risks.
How Earning an FRM Certification Enhances Career Growth
- Global Recognition: The FRM certification is globally recognized, opening doors not just in India but across the world. This certification allows professionals to work with top-tier financial institutions, consulting firms, and multinational corporations.
- Higher Salary Potential: With an FRM certification, you can earn significantly more than non-certified professionals in the same field. The average FRM salary in India is 20-40% higher than those without the certification.
- Career Advancement: Obtaining an FRM certification clearly indicates your commitment to the risk management profession. This can lead to faster career progression, such as moving from an analyst role to a risk manager or even a chief risk officer (CRO) position.
FRM Salary in Comparison to Other Certifications
It’s helpful to compare FRM salary in India to other finance-related certifications, such as the CFA (Chartered Financial Analyst) or CMA (Certified Management Accountant).
| Certification | Average Salary (INR) |
|---|---|
| FRM | 6-25 lakhs per annum |
| CFA | 8-20 lakhs per annum |
| CMA | 6-18 lakhs per annum |
Key Takeaway: The FRM certification offers competitive salaries, especially in the risk management domain. However, the CFA tends to be more suitable for investment management roles, and the CMA is focused on management accounting.
For more on certification comparisons, check out our blogs on
FAQs About FRM Salary in India
What is the starting salary of an FRM professional in India?
- The starting salary for an FRM-certified professional in India ranges from INR 6-10 lakhs annually, depending on the industry and location.
Which city in India offers the highest salaries for FRM professionals?
- Mumbai, the financial capital, offers the highest salaries for FRM professionals, with average salaries ranging from INR 8-20 lakhs.
Does the FRM certification increase salary prospects in India?
- Yes, earning the FRM certification significantly boosts salary prospects. FRM professionals earn 20-40% more than their non-certified counterparts.
What industries in India offer the best salaries for FRM holders?
- The top industries offering the best salaries for FRM professionals in India include banking, investment firms, insurance, and corporate finance.
How long does it take to see a salary increase after earning an FRM certification?
- Salary increases typically occur as you gain more experience. However, many FRM-certified professionals report higher pay within 1-2 years of certification, especially after moving into mid-level roles.
Conclusion: Is FRM Worth It for Salary Growth in India?
The FRM salary in India is highly competitive and increases significantly with experience and specialization. The FRM certification opens opportunities for high-paying banking, insurance, investment management, and corporate finance roles. If you’re looking to advance your career in risk management, the FRM certification is a valuable investment that can lead to substantial salary growth.
For more insights into how the FRM certification can enhance your career, check out our other blog, How to Pass the FRM Exam.
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FAQs
The FRM certification does not have strict educational prerequisites, making it accessible to individuals from various backgrounds such as finance, economics, engineering, or even law. However, candidates typically have some familiarity with financial markets, risk management, or quantitative analysis. Practical experience or academic exposure to finance-related topics will be helpful, but not mandatory.
FRM is generally regarded as highly specialized in risk management compared to the broader scope of the CFA, which covers investments, economics, and portfolio management. The FRM exam is technical and quantitatively demanding, especially in areas like value-at-risk (VaR), derivatives, and credit risk models. It’s a strong choice for those interested in financial risk roles specifically, whereas the CFA is more suited for broader finance careers.
On average, candidates spend about 200-300 hours preparing for each part of the exam. This can vary depending on your background:
The FRM exams are known for their difficulty, so disciplined study and practice are crucial.
Yes, the FRM complements other certifications like the CFA or an MBA by deepening expertise in risk management. It’s particularly valuable if you are pursuing or transitioning to risk-focused roles such as risk management, risk consulting, or trading. Many professionals in broader finance careers, like investment banking or asset management, pursue FRM to enhance their understanding of risk frameworks.
The exams are heavily focused on practical and analytical problem-solving. Questions require not only knowledge of risk theories but also the ability to apply concepts like VaR, credit derivatives, and stress testing in real-world scenarios. This is different from some finance certifications that may emphasize more theoretical or conceptual knowledge.
You can retake Part II at any subsequent exam session (exams are offered twice a year, in May and November). You haveup to five yearsto pass Part II after passing Part I. If you don’t pass within this timeframe, you will need to retake Part I as well.
No, you can only claim the FRM designation after completing two years of relevant full-time work experience in risk management or related fields. This experience must be verified by GARP. You can, however, mention that you are a “FRM Part I/II candidate” while you’re working toward the full designation.
Once you have earned the FRM designation, GARP expects you to participate inContinuing Professional Development (CPD), although it’s currently not mandatory. CPD encourages FRMs to maintain and update their knowledge in risk management through professional learning activities, ensuring they remain relevant in the field.
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