Career in Enterprise Risk Management (ERM): Everything you need to know

Enterprise Risk Management (ERM) has become an essential component for organizations across industries to manage risks proactively and strategically. In today’s volatile and complex business environment, the ability to identify, assess, and manage risks is critical for long-term success and sustainability. In India, the demand for risk intelligence as a skill and ERM professionals has risen significantly, driven by regulatory mandates, growing awareness of risk management’s importance as a business enabler in startups, MSMEs and large corporates, and the need to build resilient organizations. This article will guide you through the fundamentals of ERM, how to start a career in this field, available career options, and the potential salaries.

What is ERM?

IRM’s Definition of ERM:  

The Institute of Risk Management (IRM), HQ:UK, established in 1986, the world's leading certifying body for ERM qualifications and examinations across 140 countries, describes ERM as "a systematic, structured, and holistic approach to managing risks that organizations face in achieving their objectives." It views risk management as a central part of business decision-making and strategy execution, involving both threats and opportunities. ERM is thus a framework for managing ALL risks — financial, operational, strategic, reputational, compliance, ESG, and more — in a comprehensive manner, ensuring that risks are managed holistically rather than in silos.

COSO’s Definition of ERM:  

The Committee of Sponsoring Organizations of the Treadway Commission (COSO), a globally recognized body, defines ERM as "the culture, capabilities, and practices, integrated with strategy-setting and performance, that organizations rely on to manage risk in creating, preserving, and realizing value." ERM goes beyond just risk avoidance — it focuses on balancing risks with opportunities to maximize organizational value.

How to Pursue a Career in ERM?

Starting a career in ERM requires acquiring the right knowledge, skills, professional credentials and in some cases, experience. IRM is the only body across the world that provides globally recognized designations and qualifications in ERM with Fellowship at Level 5 or Stage 5. The pathway to becoming a certified ERM professional, certified ERM consultant, certified enterprise risk officer or risk-intelligent business expert begins with IRM's structured certification process.

Indian students and working professionals can start their ERM journey, by registering for IRM’s exams through the IRM India Affiliate website. IRM’s Level 1 examination can be pursued by anyone after the 12th grade, making it an ideal choice for students who wish to study ERM alongside their undergraduate or postgraduate degree in any stream (i.e., technology, finance, entrepreneurship, For those already in the workforce irrespective of the function they work in (risk management or business departments or as entrepreneurs), IRM’s flexible learning structure allows you to pursue ERM qualifications while working, making it accessible to working professionals who want to shift into or advance in risk management or experienced risk professionals or risk leaders to earn the ERM charter or designations. IRM’s exams are designed to build a comprehensive understanding of risk management at every level, ensuring that candidates acquire the skills necessary to apply ERM frameworks effectively in real-world situations. Upon completion of each level, candidates receive globally recognised credentials, positioning them for success in not just financial services but diverse industries.

IRM's Designations and Fellowship

IRM’s globally recognised qualifications range from Level 1 (the Foundation Stage) to Level 5 (Fellowship). The designations awarded by the IRM, are the world's most highly respected titles for ERM professionals. Achieving success in ERM, after passing IRM's rigorous qualifications and demonstrating relevant work experience, signifies expertise and proficiency of the essential knowledge and skills needed to manage enterprise-wide risks across sectors and economies, including cybersecurity, supply chain, climate change, reputation, and more. IRM’s Fellowship is the pinnacle designation, awarded to those who demonstrate risk leadership and advanced expertise in ERM. It also serves as a title for Chief Risk Officers (CRO) to earn a qualified status. Here are the details about all the Levels:

A. Level 1, Foundation in ERM (FoRM), February, May, August, November exams: A basic introduction to ERM, suitable for those starting their career in risk management, such as students or early-career risk professionals or any professional from a business function, audit, compliance, investor relation background. This level provides a broad overview of ERM principles and frameworks like ISO 31000, COSO 2004 and 2017 whilst also covering study of 300 areas of risks, extended enterprise, sectorial case studies and more. On average, approximately 60% of candidates successfully clear the Level 1 exam.

B. Level 2, Designation – IRMCert, June and November exams: A deeper dive into ERM concepts and practices, designed for professionals looking to enhance their risk management skills. It focuses on practical applications of ERM across different industries with option to pursue General ERM or Financial Services ERM / Financial Risk Management (International Certificate in ERM or FS-ERM, OFQUAL Level 5). With advanced understanding of global interconnected events, uncontrollable risks and strategic threats, candidates gain immense knowledge on mitigation strategies to achieve business objectives and seize new opportunities. Students can pursue Level 2 after passing the Level 1 exam. Professionals with 2 years’ risk experience can directly start with Level 2. On average, approximately 30-40% of candidates successfully clear the Level 2 exam in India, however this is dependent on several factors like the difficulty level, grading pattern, essay-based question and more.

C. Level 3, Designation – GradIRM, online assessment throughout the year: The Level 3 Qualification has been the top global choice for candidates wanting an International Masters in ERM. This comprehensive course can be pursued after Level 2 and it delves into techniques for identifying risks, opportunities, and threats, as well as exploring widely used qualitative and quantitative methods for analysing risks and uncertainties. It covers various control types, options, and techniques, alongside project risk management. Students will also examine risk management in relation to organizational resilience and society. Recognized internationally, this course includes essential topics such as building resilience, business continuity, crisis management, corporate governance, decision-making, organizational culture, ethics, strategic risk, leadership, and overseeing risk management. There is no exam at this stage hence there is no standard pass percentage. The Level 3 Qualification modules are assessed through assignments which are submitted online, using IRM Global's educational portal.

D. Level 4, Designation – CMIRM, membership grade, no exam: After successfully completing the Level 3 qualification, professionals can advance to Level 4. Certified Members who achieve this can use the CMIRM designation and the title of Certified Risk Professional, recognized globally as a mark of professionalism. This designation showcases technical competence, broad experience, and a commitment to ongoing professional development. IRM professionals are expected to maintain the highest standards of behavior, integrity, and ethics by following IRM's global Professional Code of Conduct and meeting the requirements of the Continuing Professional Development (CPD) program. To be eligible for Level 4, you should complete IRM’s Level 3 examination in India (GradIRM) and have at least three years of practical experience in a risk-related role. If you hold a senior strategic and decision-making risk role such as a CRO or Risk Leader title and have a minimum of 8 years' relevant experience, you may be eligible to directly apply for CMIRM by experience via the senior executive route comprising of a case-based application form and a panel interview.

E. Level 5 – Fellowship, membership grade, no exam: The highest qualification in ERM awarded by IRM, Fellowship is reserved for risk management experts who have demonstrated significant expertise and contribution to the field. Fellows are recognized as leaders in ERM and often hold senior positions such as the CRO.

Career Options in Enterprise Risk Management

ERM is a universal field with applications across various sectors. Professionals trained in ERM are not limited to specific roles; they can work in virtually any department of an organization, as every department must manage risks to some extent.

Traditional ERM Roles

1. Certified Risk Manager: A certified risk manager ensures that an organization identifies, evaluates, and mitigates risks in a structured manner. This role involves working closely with other departments to implement risk management strategies.

2. Chief Risk Officer (CRO): A CRO is responsible for overseeing the entire risk management framework of an organization. They report to the board of directors and ensure that risks are managed in line with the company’s strategic objectives.

3. Risk Analyst or Consultant: These professionals work with companies to identify risks and suggest ways to mitigate them. They often work on specific projects and provide expert advice on risk management strategies.

Emerging ERM Roles

Beyond traditional risk management roles, IRM-certified ERM professionals can work in over 100 different risk domains, including:

1. Climate Risk Management / ESG: With growing concerns about climate change, organizations need professionals who can assess and mitigate climate-related risks, ensuring that businesses are resilient to environmental changes.

2. Supply Chain Risk Management: Managing risks within global supply chains has become increasingly important, especially after disruptions caused by global events like the COVID-19 pandemic. IRM-certified ERM professionals in this area ensure that supply chains remain resilient and sustainable.

3. Cyber Risk Management: As organizations rely more on digital technologies, cyber risks have become a top concern. IRM-certified ERM professionals in cyber risk management help organizations protect their data and digital infrastructure from cyberattacks.

4. Regulatory and Compliance Risk: With increasing regulations in India around ERM, especially in sectors like banking, finance, and insurance, professionals who understand regulatory requirements and can ensure compliance are in high demand. IRM-certified ERM professionals are well-positioned to handle these complex requirements.

5. Reputation Risk: In today's connected world, a company’s reputation can be impacted quickly by negative news, scandals, or social media missteps. IRM-certified ERM professionals specializing in reputation risk work to protect and manage a company’s public image and credibility.

6. Investor Relations Risk: Effective communication with investors is crucial for maintaining trust and confidence. IRM-certified ERM professionals who specialize in investor relations manage risks related to financial transparency, reporting, and the perception of business health.

7. Due Diligence Risk: In mergers and acquisitions, thorough risk assessment is key. IRM-certified ERM professionals specializing in due diligence analyse financial, operational, legal, and market risks, ensuring that any potential deal is beneficial and aligns with strategic objectives.

8. Risk Tech and Innovation: As risk management evolves, technology plays an increasing role. IRM-certified ERM professionals focusing on risk tech work with emerging technologies such as artificial intelligence, data analytics, and automation to improve risk detection, monitoring, and mitigation.

These roles highlight the diverse career opportunities available to IRM-certified ERM professionals across multiple industries, emphasizing their expertise and adaptability in navigating complex risks.
Entrepreneurship in ERM

In addition to corporate roles, ERM offers opportunities for entrepreneurship. Professionals with advanced ERM qualifications can start their own risk consulting firms, offering services to businesses that need expert guidance in managing risks. As the importance of risk management grows, so does the demand for specialized risk consulting services.

Increasing Regulations in India Around ERM

India has witnessed a surge in regulations aimed at enhancing risk management across multiple sectors, driven by various regulatory bodies such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Companies Act 2013. These regulations emphasize the importance of establishing robust ERM frameworks within organizations. For instance, SEBI mandates that listed companies adopt risk management policies to ensure effective corporate governance, while the Companies Act 2013 requires companies to have formal risk management procedures in place, with a focus on mitigating operational, financial, and strategic risks. Additionally, IRDAI enforces strong risk management protocols within the insurance sector, encouraging insurers to incorporate risk assessments into decision-making processes to ensure business resilience.

This regulatory push is not limited to the financial sector; industries such as manufacturing, technology, healthcare, and infrastructure are increasingly required to integrate ERM practices into their operations. The growing focus on areas like cybersecurity, environmental sustainability, and corporate governance has further fuelled demand for IRM-qualified risk management professionals across sectors. As a result, ERM is becoming a highly attractive and stable career choice in India, offering professionals opportunities to play a critical role in helping organizations navigate the complexities of today’s dynamic regulatory landscape. According to several market reports, recruitment data and industry trends, there are about 200,000 job openings for risk management and allied roles in India.

Salaries in Enterprise Risk Management

Salaries for ERM professionals in India can vary significantly depending on the level of expertise, industry, and job role. However, with the increasing importance of risk management, compensation in this field is highly competitive.

1. Entry-Level (Risk Analyst or Risk Champion working in any business department): Salaries typically range from INR 6-10 lakhs per annum, depending on the industry and the candidate's graduation / post-graduation along with the IRM Level.

2. Mid-Level (Risk Manager): Professionals with about 5 years of experience can expect salaries between INR 12-20 lakhs per annum, depending on the relevant industry experience and the graduation / post-graduation along with the IRM Level.

3. Senior-Level (Chief Risk Officer, Risk Consultant): CROs and senior risk management professionals can earn upwards of INR 40 lakhs per annum, with some roles offering packages in the range of INR 90 lakhs to INR 2.5 crores.

4. Entrepreneurs (Risk Consulting Firms): Entrepreneurs who establish their own risk consulting firms have the potential to earn significantly more, depending on the scale of their business and the clients they serve especially with increasing opportunities for preparing risk reports or helping manage risk compliances.

ERM is a field that offers immense growth opportunities in India. With the right qualifications, such as those offered by the Institute of Risk Management, professionals can build a rewarding career in a range of industries, from finance and banking to manufacturing and IT. ERM is not just about managing risks but also about building resilient organizations that can thrive in an uncertain world.

If you’re interested in making a career in ERM, now is the perfect time to start. Register through IRM India Affiliate, choose the certification path that suits your career goals, and take the first step toward becoming a risk-intelligent professional.