Risk Management jobs

Water Cooler Careers
#1

I am in the back office of an asset management firm and would like to break into Risk Managment field.

I took CFA level II exam but failed. Now I’m wondering if I should stick to CFA or do something else. CFA is broad and widely recognized in finance/investment field. However I’m not interested in any front office job but more interested in middle office, expecially Risk Management. So if I already know what I want, why don’t I just focus on opportinities in this particular field instead of wasting my time on CFA tests? I’m wondering if passing FRM will help me get into this field, and how hard it is comparing to CFA?

Thank you in advance.

#2

FRM is more relevant than CFA for risk management, but don’t kid yourself. Passing a few exams only makes the hiring manager stare at your resume for an additional second.

#3

Does that mean once I’m in operation, I’m stuck with operation forever?

All the analyst jobs I applied are asking for experience, now you are saying passing exams is not doing much, pretty much I’ll just have to sit here and rot?

#4

working in operations is like digging a hole. the longer you do it, the harder it is to get out.

CFA program won’t magically let you jump out.

#5

Unfortunately, yes. Firms will hire new grads or experienced people for analyst jobs.

#6

the great thing about fresh grads: taking it with little complaining, willing to grind out long hours, low pay, willing to do slave labor

#7

I’ve worked in risk management and consulted in risk management since 2001: mostly project risk management, but some financial risk management as well. I’ve never taken the FRM exam and have no intention of taking it.

If I were looking to hire someone in risk management, I’d look for experience first, then education, and I’d probably prefer someone with a degree in applied mathematics to someone who passed the FRM. But that’s just me.

#8

Thanks for the opinion. S2000magician. Will you hire someone who passed CFA then?

#9

Not quite true. I understand offers won’t magically pour in after passing the exams but it should help. It also depends on your interview skills too.

Two of my coworkers got out of operations after passing the exams. I am inspired by them.

#10

Not merely because they passed the CFA exams, though it might sway me in close situations. There’s some risk management at Level III, but I’d want to see more experience or proven aptitude: risk management is, in large part, model building; hence, the applied mathematics.

#11

I’m in risk management too, but on the corporate side. It’s a huge field. My job is maybe 30% quantitative risk and 70% strategic/political/thatsortofthing risk management, so my opinion is perhaps a little less valid than someone working VaR models all day.

I agree with Magician that this is a field that is more about experience than education. I don’t think the Charter would hurt a prospective candidate (if I was hiring it would certainly be a positive), but there isn’t much in the program that is providing value in the field. I started the program when I was in corporate treasury (capital markets) so it had more relevance, I probably wouldn’t have done CFA looking back, though, if risk management was my end goal.

I’d have to ask… why risk management? Are you looking at this as a stepping stone or what? What’s your motivation?

#12

It’s one of the few growing fields in finance.

#13

Thanks Goe.

I have been thinking about my career path for a while. I know I’m not interested in any front office job,e.g. portfolio management, trading,etc. I’m more interested in middle office jobs in a technical role. I’m also looking for something that is universal and stable. After all the financial crises, I believe risk management is a growing field, a field which most investment companies cannot live without.

I’m struggling with the idea that if I should quit CFA program (I failed in level II this year), and focus on FRM, since this is the field I’m interested. CFA is widly recognized but FRM is more targeted at a particular field. The thing is I’m currently in the back office and want to get out. I’m not sure how much FRM can help me in getting interviews for those risk management positions. If I quit CFA and take FRM, then I’m ruling out other opportunities?

#14

This is probably not the answer you want to hear but without experience, CFA or FRM won’t make a difference. Network your a$$ out and hope that someone will give you a lucky break. In the boom years designations can help, not in an era where someone with 7 years of relevant experience with MBA and CFA is competing for the same jobs as you are.

#15

That means I should stop taking exams and start networking?

So former trader, what’s your motivation to take these exams?

It’s interesting that people who have passed the exams are all saying it won’t make any difference…It does’t worth it…

#16

You can do both, but you will get more results from networking like crazy. I took the exams during another era. Times have changed.

#17

I have a feeling that Former Trader’s observation is correct, but I would not cut your losses just yet.

I recently became an analyst after working in Ops for over two years. As luck would have it, my interview amounted to a verbal exam of the CFA Level I curriculum (which was still fresh in my mind); however, the biggest key to making the Varsity Team for me was making connections with the other analysts. During my tenure in Ops, I wore a suit nearly every day, I maintained a positive presence in the office, and (most importantly), I did my job well. When a position finally opened up, they chose me (the known commodity).

#18

Networking was the key to your success above all else.

#19

It was a big factor, yes … but I also rocked the sh** out of my $17.50 / hour job for two years.

#20

Experience and networking.

Designations are way below those 2.