In today’s fast-paced and highly regulated financial environment, risk management has emerged as a critical function for organizations, especially in countries like India. The FRM (Financial Risk Manager) certification, offered by the Global Association of Risk Professionals (GARP), is globally recognized and highly regarded for its focus on risk management in financial institutions. With the increasing advancement in financial systems in India, the demand for good professionals who have the ability to determine fundamental risks in areas such as banking, insurance, consulting services, and the increasingly popular Financial Technology is growing. The holders of FRM certifications are considered valuable for the supply of strategic knowledge and organizational financial and regulatory risks management.
The overall employment prospects for those with or seeking the FRM certification are promising, especially considering the relatively high pay in this field. Holding the FRM certification earns good remuneration, particularly in leadership roles, hence the certification is important in an employee’s career advancement. This blog outlines how FRM salary varies with experience, industry, and geographic region, and how this is changing in today’s world so that readers can make well-informed career decisions for this burgeoning area.
What is an FRM?
An FRM is a globally recognized certification that equips professionals with the skills to manage risk in today’s dynamic financial environment. FRMs are responsible for identifying, analyzing, and mitigating risks that may affect a financial institution’s capital and earnings. Key skills obtained through FRM certification include credit risk analysis, operational risk management, market risk, and regulatory compliance.
The FRM qualification is highly valued by employers in the financial services sector, as it ensures professionals have a deep understanding of global and domestic risk standards.
To understand in-depth about the FRM course, read- All About the FRM Course
Scope and Demand for FRM in India
The FRM certification is highly valued in India’s financial landscape, with growing demand due to increasing regulatory requirements, market volatility, and the need for robust risk management frameworks. FRM professionals are essential across multiple sectors, including banking, insurance, consulting, and FinTech.
Key Sectors Hiring FRM Professionals
Banking and Financial Services (BFSI):
Major banks like ICICI, HDFC, and SBI actively seek FRMs to manage credit risk, market risk, and ensure compliance with Basel III norms.
Consulting Firms:
Firms like Deloitte, PwC, and EY hire FRMs to provide risk advisory services, helping clients navigate complex financial and regulatory risks.
FinTech:
Companies like Paytm, Razorpay, and Zerodha need FRMs to manage cybersecurity risks and regulatory compliance as digital finance grows rapidly.
Insurance Companies:
FRMs are crucial for managing underwriting risks and ensuring financial stability in companies like LIC, ICICI Prudential, and HDFC Life.
Non-Financial Corporations:
Large firms like Tata Group and Reliance hire FRMs to handle corporate risk management, safeguarding business operations against financial risks.
Rising Demand for FRM Professionals
Increased Regulatory Compliance:
As regulatory demands from RBI and SEBI rise, companies need FRMs to ensure compliance.
Market Volatility:
Global uncertainties, such as currency fluctuations and geopolitical risks, create high demand for skilled risk managers.
Digital Transformation:
The rise of FinTech and technology-driven finance has increased the need for FRMs to manage tech-related risks like cybersecurity.
Sustainability Risks:
Companies are focusing more on Environmental, Social, and Governance (ESG) risks, which requires strategic risk management, increasing the scope for FRMs.
FRM Salary Structure in India
The salary for FRM-certified professionals in India varies based on factors like experience, job role, industry, and location. The FRM certification is highly regarded, and those holding it can expect competitive salaries across various sectors such as banking, consulting, insurance, and FinTech.
Entry-Level FRM Salaries
- For professionals just starting their career with an FRM certification, the average salary ranges between ₹6-8 lakhs per annum.
- Fresh FRMs are typically employed in roles like Risk Analyst or Junior Risk Manager, where they assist senior risk managers in analyzing risk exposures, conducting stress tests, and ensuring regulatory compliance.
- Cities like Mumbai, Delhi, and Bangalore tend to offer higher starting salaries due to the concentration of financial institutions and multinational companies.
- For example, in Mumbai, the financial hub of India, an entry-level FRM can earn as much as ₹10 lakhs per annum, especially when hired by top banks or consulting firms.
The screenshot from Glassdoor depicts the average salary for Risk Analysts in India
Mid-Level FRM Salaries
- After 3–5 years of experience, FRM professionals usually see a significant increase in salary.
- Mid-level roles such as Risk Manager or Senior Risk Analyst come with more responsibilities, including managing teams, developing risk strategies, and advising on risk-related decisions.
- The salary at this stage ranges from ₹12-20 lakhs per annum, depending on the organization and industry.
- Professionals who further complement their FRM certification with additional qualifications like CFA or MBA tend to receive higher compensation packages.
- For example, a Risk Manager working in a leading multinational bank or consulting firm could earn close to ₹25 lakhs if they possess strong analytical and leadership skills.
The screenshot from Glassdoor depicts the average salary for Risk Manager in India
Senior-Level FRM Salaries
- Professionals with 7+ years of experience in risk management often occupy senior roles such as Head of Risk Management, Director of Risk, or even Chief Risk Officer (CRO).
- At this level, they are responsible for leading the entire risk management function, developing comprehensive risk mitigation strategies, and advising the company’s top executives on potential risks.
- Salaries for senior-level FRMs typically range from ₹25 lakhs to ₹50 lakhs per annum.
- In large multinational banks, consulting firms, or corporations, senior FRM professionals with extensive experience may even earn salaries that exceed ₹50 lakhs per annum.
- This level of compensation reflects the critical role these professionals play in safeguarding the organization from financial, operational, and regulatory risks.
The screenshot from Glassdoor depicts the average salary for Chief Risk Officer in India
The graph shows FRM salary growth in India, highlighting the rise from entry-level to senior-level roles.
Comparative Analysis Table of FRM Salaries by Experience and Job Role
| Level | Experience | Job Role | Salary Range (₹) | Key Responsibilities | Industry Examples |
|---|---|---|---|---|---|
| Entry-Level | 0-2 years | Risk Analyst, Junior Risk Manager | ₹6-8 lakhs | Assisting senior risk managers, conducting stress tests, ensuring regulatory compliance | Banking, Consulting, Insurance, FinTech |
| Entry-Level (Mumbai) | 0-2 years | Risk Analyst, Junior Risk Manager | Up to ₹10 lakhs | Higher starting salary due to concentration of financial institutions and MNCs | Banking, Consulting |
| Mid-Level | 3-5 years | Risk Manager, Senior Risk Analyst | ₹12-20 lakhs | Managing teams, developing risk strategies, advising on risk-related decisions | Banking, Consulting, Insurance, FinTech |
| Mid-Level (with CFA/MBA) | 3-5 years | Risk Manager, Senior Risk Analyst | Up to ₹25 lakhs | Higher compensation with additional qualifications like CFA or MBA | Banking, Consulting |
| Senior-Level | 7+ years | Head of Risk, Director of Risk, CRO | ₹25-50 lakhs | Leading risk management function, developing risk mitigation strategies, advising top executives | Banking, Consulting, Insurance, Corporations |
| Senior-Level (Multinational Banks) | 7+ years | Head of Risk, Director of Risk, CRO | ₹50 lakhs or more | Managing comprehensive risk portfolios, advising executives on critical risks | Multinational Banks, Corporations |
Salary by Industry Sector
The industry in which an FRM professional works can have a significant impact on salary levels:
Banking and Financial Services:
- The banking sector offers some of the highest salaries for FRM professionals.
- For entry-level positions, salaries start around ₹8 lakhs and can go up to ₹40 lakhs or more for senior roles such as CRO in major banks like ICICI Bank or HDFC Bank.
Consulting Firms:
- Firms like Deloitte, KPMG, and EY offer salaries ranging from ₹10 lakhs for entry-level positions to ₹35 lakhs or more for senior risk advisory roles.
- Consulting firms are willing to pay top dollar for professionals who can provide risk solutions to multiple clients.
Insurance Companies:
- In the insurance sector, FRMs help manage underwriting, claims, and asset management risks.
- Salaries typically range from ₹7 lakhs to ₹30 lakhs, with top-tier insurers like LIC and HDFC Life offering competitive packages for experienced professionals.
FinTech and Startups:
- With the rise of FinTech, FRM professionals are in demand to manage cybersecurity and regulatory risks.
- Salaries range from ₹6 lakhs for entry-level positions to ₹25 lakhs for senior roles in companies like Paytm and Razorpay.
Non-Financial Corporations:
- Many large Indian conglomerates, such as Tata Group and Reliance, hire FRM professionals for corporate risk management roles.
- Salaries range from ₹8 lakhs for entry-level roles to ₹30 lakhs or more for senior risk management positions.
The graph below represents the comparison of average FRM salaries for entry-level and senior-level professionals across various industry sectors in India.
Comparative Analysis Table of FRM Salaries by Industry Sector
| Industry Sector | Entry-Level Salary (₹) | Senior-Level Salary (₹) | Key Employers | Job Roles |
|---|---|---|---|---|
| Banking and Financial Services | ₹8 lakhs | Up to ₹40 lakhs or more | ICICI Bank, HDFC Bank | CRO, Head of Risk Management |
| Consulting Firms | ₹10 lakhs | ₹35 lakhs or more | Deloitte, KPMG, EY | Senior Risk Consultant, Risk Advisory |
| Insurance Companies | ₹7 lakhs | ₹30 lakhs | LIC, HDFC Life, ICICI Prudential | Risk Manager, Head of Risk, CRO |
| FinTech and Startups | ₹6 lakhs | ₹25 lakhs | Paytm, Razorpay, PolicyBazaar | Cyber Risk Manager, Compliance Manager |
| Non-Financial Corporations | ₹8 lakhs | ₹30 lakhs or more | Tata Group, Reliance Industries | Corporate Risk Manager, Senior Risk Consultant |
Top Hiring Companies for FRM Professionals in India
The demand for FRM-certified professionals in India spans across multiple sectors, with some of the largest global and domestic companies actively seeking skilled risk managers. These companies understand the value of having an expert in risk management to help mitigate financial, operational, and regulatory risks. Here are the top companies that regularly hire FRM-certified professionals:
Multinational Banks
Global banks are some of the biggest employers of FRM-certified professionals in India. These institutions deal with complex financial operations and require robust risk management teams to handle global risk exposures. Some of the top multinational banks hiring FRMs include:
- JPMorgan Chase
- HSBC
- Citibank
- Barclays
- Standard Chartered
Indian Banks
India’s banking sector is one of the fastest-growing employers for FRM-certified professionals, as they need risk managers to ensure compliance with regulatory frameworks such as Basel III and mitigate credit and market risks. Leading Indian banks hiring FRMs include:
- ICICI Bank
- HDFC Bank
- State Bank of India (SBI)
- Kotak Mahindra Bank
- Axis Bank
These banks offer lucrative salary packages, with opportunities to grow into leadership roles such as Chief Risk Officer (CRO) or Head of Risk Management.
Consulting Firms
Top consulting firms, often referred to as the Big 4, play a crucial role in providing risk advisory services to various clients across industries. These firms actively recruit FRM-certified professionals to help businesses manage and mitigate financial risks. Some of the key consulting firms include:
- Deloitte
- KPMG
- PwC (PricewaterhouseCoopers)
- Ernst & Young (EY)
Insurance Companies
The insurance sector is highly dependent on risk management professionals to handle underwriting, claims, and operational risks. FRM-certified professionals are in demand in major Indian and global insurance firms. Top employers in this sector include:
- Life Insurance Corporation of India (LIC)
- ICICI Prudential Life Insurance
- HDFC Life
- SBI Life Insurance
- Tata AIA Life Insurance
FinTech and Startups
The FinTech industry in India is booming, and with it comes the demand for risk managers to navigate the complexities of cybersecurity, fraud prevention, and regulatory compliance. Startups and growing FinTech companies are actively hiring FRMs to manage risks associated with digital financial services. Some of the leading FinTech employers include:
- Paytm
- Razorpay
- Zerodha
- PolicyBazaar
- PhonePe
Non-Financial Corporations
Large conglomerates and non-financial corporations are also beginning to realize the importance of risk management in their business operations. These companies hire FRM-certified professionals for corporate risk management roles, where they are responsible for managing risks related to supply chain, foreign exchange, and regulatory compliance. Some of the top employers include:
- Tata Group
- Reliance Industries
- Aditya Birla Group
- Mahindra & Mahindra
- Vedanta Resources
Factors Influencing FRM Salaries in India
Several key factors influence the salary of FRM-certified professionals in India. Understanding these factors can help professionals maximize their earning potential and make strategic career decisions. Here’s a detailed overview of the main factors:
Experience
Experience is one of the most significant factors influencing FRM salaries. Entry-level professionals with 0-2 years of experience typically earn between ₹6-8 lakhs per annum. As professionals gain more experience, salaries increase substantially. Mid-level roles (with 3-5 years of experience) earn between ₹12-20 lakhs per annum, while senior-level roles like Head of Risk or Chief Risk Officer (CRO) with over 7 years of experience can command salaries ranging from ₹25 lakhs to ₹50 lakhs or more.
Industry
The industry sector plays a significant role in determining salary levels for FRM professionals:
- Banking and Financial Services (BFSI): This sector offers some of the highest salaries, ranging from ₹8-40 lakhs depending on the role and experience.
- Consulting Firms: Firms like Deloitte and PwC offer salaries ranging from ₹10-35 lakhs for FRMs involved in risk advisory roles.
- FinTech: Salaries in this rapidly growing industry range from ₹6-25 lakhs, with high demand for risk professionals to manage cybersecurity and regulatory risks.
- Insurance: Risk managers in the insurance sector earn between ₹7-30 lakhs, depending on their responsibilities and experience.
Location
- Location has a significant impact on salary levels. Major cities like Mumbai, Delhi, and Bangalore offer higher salaries due to the concentration of financial institutions.
- For example, FRMs in Mumbai, India’s financial capital, can earn 10-15% more than their counterparts in smaller cities. Cities like Bangalore are also attractive for FinTech and consulting roles, with competitive compensation packages.
Company Size and Brand
- Working for a large multinational company (MNC) or a well-established Indian company usually results in better pay and benefits. Prestigious firms like JPMorgan, Citibank, and HSBC offer higher salaries, especially for senior professionals.
- These firms often provide opportunities for global exposure, which can further boost earning potential. On the other hand, smaller companies may offer lower salaries but could provide faster career progression.
Additional Qualifications
- FRM professionals who acquire additional qualifications such as CFA (Chartered Financial Analyst), MBA, or certifications in data analytics or AI/ML can increase their earning potential.
- These certifications make professionals more versatile, especially in high-demand areas like quantitative risk and regulatory compliance. A dual certification in FRM and CFA can boost salaries by 20-30%.
Performance and Achievements
- Outstanding performance and achievements in risk management can lead to bonuses and salary hikes.
- Professionals who successfully reduce risk exposure or contribute significantly to their firm’s financial stability are often rewarded with promotions and performance-based incentives, which enhance their overall compensation.
Industry Demand and Economic Conditions
- FRM salaries are influenced by market demand and economic conditions. During periods of economic volatility, increased regulatory scrutiny, or market instability, the demand for risk management professionals rises, leading to higher salaries.
- Companies need FRM professionals to navigate challenges like regulatory compliance, market fluctuations, and global risks.
Global Exposure and International Experience
- FRM professionals with global exposure or international experience tend to command higher salaries.
- Working with multinational companies, understanding international risk regulations, and managing global financial risks are valuable skills that employers seek, particularly for senior roles.
Comparison of FRM Salaries with Other Finance Certifications
When choosing a career path in finance, professionals often weigh different certifications based on their potential impact on salary and career growth. FRM (Financial Risk Manager) certification is highly regarded in the field of risk management, but how does it compare with other popular finance certifications like CFA (Chartered Financial Analyst), CA (Chartered Accountant), and CPA (Certified Public Accountant) in terms of salary? Here’s a detailed comparison:
FRM (Financial Risk Manager)
The FRM certification is globally recognized for its focus on financial and operational risk management. FRM professionals are in high demand, particularly in banks, consulting firms, insurance companies, and FinTech companies.
- Entry-Level Salary: ₹6-8 lakhs per annum.
- Mid-Level Salary: ₹12-20 lakhs per annum.
- Senior-Level Salary: ₹25-50 lakhs per annum or more.
FRM professionals tend to command higher salaries in risk-focused roles, such as Risk Manager, Chief Risk Officer (CRO), and Head of Risk Management. As the importance of risk management grows, especially in compliance-heavy industries like banking and insurance, the compensation for FRMs continues to increase.
CFA (Chartered Financial Analyst)
The CFA certification is another globally recognized credential that focuses on investment management, portfolio management, and equity research. CFAs typically work in asset management, investment banking, equity research, and corporate finance.
- Entry-Level Salary: ₹6-10 lakhs per annum.
- Mid-Level Salary: ₹15-30 lakhs per annum.
- Senior-Level Salary: ₹30-50 lakhs per annum or more.
CFA professionals often earn higher salaries in investment-related roles, such as Portfolio Manager, Investment Banker, or Equity Analyst. However, their earning potential is more tied to market conditions and investment performance.
To get an in-depth insight about the CFA salary, read- CFA Salry in India
CA (Chartered Accountant)
The CA certification is one of the most respected qualifications in India and covers accounting, taxation, audit, and finance. CAs work across various industries, including corporate finance, auditing, taxation, and consulting.
- Entry-Level Salary: ₹6-8 lakhs per annum.
- Mid-Level Salary: ₹12-25 lakhs per annum.
- Senior-Level Salary: ₹30-40 lakhs per annum or more.
CAs typically earn high salaries in roles like Finance Manager, Audit Manager, CFO (Chief Financial Officer), and Tax Consultant. While CAs generally earn competitive salaries, their roles are broader, focusing on financial reporting and compliance rather than specialized risk management.
CPA (Certified Public Accountant)
The CPA certification is internationally recognized and focuses on accounting principles, auditing, and taxation. CPAs are highly valued in multinational companies, global accounting firms, and financial consulting.
- Entry-Level Salary: ₹7-10 lakhs per annum.
- Mid-Level Salary: ₹15-25 lakhs per annum.
- Senior-Level Salary: ₹30-35 lakhs per annum or more.
CPAs generally work in accounting, financial reporting, and audit, and are highly sought after by Big 4 consulting firms and global companies. The CPA certification tends to offer strong salary prospects in international markets and multinational corporations.
To get an in-depth insight about the CPA course, read- All About the CPA Course
The graph below compares the average salaries for FRM, CFA, CA, and CPA certifications at entry, mid, and senior levels.
Comparative Analysis Table of FRM Salaries vs Other Finance Certifications
| Certification | Primary Focus | Entry-Level Salary | Mid-Level Salary | Senior-Level Salary | Top Industries/ Roles |
|---|---|---|---|---|---|
| FRM (Financial Risk Manager) | Risk management (credit, market, operational risk) | ₹6-8 lakhs | ₹12-20 lakhs | ₹25-50 lakhs or more | Banking, Insurance, Consulting, FinTech Roles: Risk Analyst, Risk Manager, CRO |
| CFA (Chartered Financial Analyst) | Investment management, equity research, portfolio management | ₹6-10 lakhs | ₹15-30 lakhs | ₹30-50 lakhs or more | Investment Banking, Asset Management, Equity Research Roles: Portfolio Manager, Equity Analyst, Investment Banker |
| CA (Chartered Accountant) | Accounting, taxation, auditing, financial reporting | ₹6-8 lakhs | ₹12-25 lakhs | ₹30-40 lakhs or more | Corporate Finance, Auditing, Taxation, Consulting Roles: Finance Manager, Audit Manager, CFO |
| CPA (Certified Public Accountant) | Accounting principles, financial reporting, audit | ₹7-10 lakhs | ₹15-25 lakhs | ₹30-35 lakhs or more | Multinational Companies, Global Accounting Firms Roles: Financial Accountant, Auditor, Consultant |
How to Maximize Your FRM Salary in India
Here are a few strategies to enhance your salary potential as an FRM:
- Networking: Building strong professional relationships in the finance industry can help you land higher-paying jobs.
- Continuing Education: Regularly updating your skills, such as pursuing advanced certifications in data analytics, AI, or blockchain, can significantly increase your earning potential.
- Internships and Mentorships: Leveraging internships or finding a mentor in the industry can open up better career opportunities.
- Stay Updated: Keeping up with the latest trends and tools in risk management will give you an edge in salary negotiations.
Future Salary Trends for FRM Professionals in India
The demand for FRM-certified professionals in India is set to grow due to increasing market volatility, regulatory pressures, and technological advancements. Here are the key factors driving future salary trends for FRMs:
Rising Demand for Risk Management
As businesses prioritize risk management to comply with RBI and global regulations like Basel III, demand for FRMs in banking and insurance will rise, leading to salary growth. Entry-level salaries are expected to remain around ₹6-10 lakhs, while senior roles like CRO could exceed ₹50 lakhs.
FinTech and Digital Finance Expansion
With FinTech booming, FRMs specializing in cybersecurity and digital risks will be in high demand. Salaries in this sector are projected to grow, with senior FRM roles in FinTech reaching ₹25-40 lakhs or more in tech-driven hubs like Bangalore.
Integration of AI and Data Analytics
FRMs who develop expertise in AI, machine learning, and data analytics will command premium salaries, as companies increasingly rely on data-driven risk assessments. Such specialists could see salaries rise to ₹30-50 lakhs in senior roles.
Global Expansion and Cross-Border Risks
As Indian firms expand internationally, FRMs with global risk expertise will be highly sought after, pushing salaries higher, especially in roles dealing with currency and geopolitical risks.
Regulatory Compliance and ESG Risks
With stricter regulations and focus on ESG (Environmental, Social, and Governance) factors, FRMs specializing in regulatory and sustainability risks will see increased salaries, especially in leadership roles where compensation could reach ₹50 lakhs or more.
Conclusion
The FRM certification is gaining immense importance in India’s financial sector, with increasing demand for risk management professionals across industries such as banking, insurance, FinTech, and consulting. FRM certified professionals in entry-level positions earn anywhere between ₹6-10 lakhs per annum, while mid-level employees can earn up to ₹12-25 lakhs per annum. It is important to note that senior professionals in leadership roles, such as CRO, can easily draw salaries of more than ₹50 lakhs annually. One of the reasons organizations are offering lip-smacking packages for risk managers is the increasing requirement for professional risk managers due to regulatory push and market risks.
In the future, professionals working in FRM with a focus on emerging fields such as AI, data analytics, or sustainability risks are expected to have much higher salaries. Other fields such as FinTech and global risk management are expected to offer well-paid and promising positions with increased demand. With greater emphasis on compliance and risk management, obtaining an FRM certification can be a smart career decision for those seeking well-paid positions in the financial sector and preparing for the future.
Frequently Asked Questions
Entry-level FRM professionals can expect salaries between ₹6-8 lakhs per annum.
Multinational banks like JPMorgan, Indian banks like ICICI, and consulting firms like Deloitte offer some of the highest salaries.
Both offer competitive salaries, but FRMs often earn more in specialized risk management roles.
Additional certifications (like CFA or MBA), networking, and gaining experience in high-demand industries can boost your earning potential.
