Overview - GARP FRM

“As the financial industry becomes increasingly competitive, the professionals who advance are those who can prove their ability to add value. The FRM certifies that a candidate possesses the knowledge to help their organization succeed. -“WILLIAM MAY

Financial Risk Manager (FRM)

For more than 20 years, the Financial Risk Manager (FRM®) has set the global standard for risk management. Developed by the world’s leading risk practitioners, the designation signifies a mastery of the skills and knowledge needed to help organizations succeed in today’s rapidly changing financial landscape. Currently, more than 60,000 certified FRMs are employed internationally at nearly every major bank, asset management firm, hedge fund, consulting firm, and regulator in the world. FRM registrations have grown by an average of 15% per year since 2010, surpassing 80,000 in 2019. This growth reflects the rapidly increasing demand for professionals trained in measuring and managing financial risk.

Becoming Certified Financial Risk Manager

Becoming a certified Financial Risk Manager involves a serious commitment in time and energy, a key reason. FRMs are so valued by companies. After achieving a passing score on both parts of the FRM Exam, candidates must submit two years of full-time work experience in finance or a related field to complete their certification.

A candidate has five years to submit their work experience after passing the FRM Exam Part II. Experience up to 10 years prior to passing both Exams is applicable as well. Related work experience may include trading, portfolio management, academia, industry research, auditing, risk consulting, or risk technology.

FRM EXAM DETAILS

  • Exam Structure
  • Exam Fees
  • Exam Dates

The FRM consists of two multiple-choice exams. The FRM Exam Part I consists of 100 equally weighted questions, and the FRM Exam Part II consists of 80 equally weighted questions. Candidates are allotted four hours to complete each Exam. Exam is offered via computer-based testing (CBT).The Exams are comprehensive, practice-oriented assessments that cover the fundamental tools and techniques used in risk management, their underlying theories, and the major sub-areas of risk.

EXAMEarly (July 31)Standard (Sept 30)
FRM PART 1USD 950USD 1150
FRM PART 1 REPEATERSUSD 550USD 750
FRM PART 2USD 550USD 750
  • FRM PART I - NOV 13-26, 2021 
  • FRM PART II - DEC 4-10, 2021.

Syllabus and FAQs

  • Exam Syllabus
  • Exam FAQ'S

FRM Exam Part I 

  • Foundations of Risk Management
  • Quantitative Analysis
  • Financial Markets and Products
  • Valuation and Risk Models

FRM EXAM PART II

  • Market Risk Measurement and Management
  • Credit Risk Measurement and Management
  • Operational Risk and Resiliency
  • Liquidity and Treasury Risk Measurement and Management
  • Risk Management and Investment Management
  • Current Issues in Financial Markets
1. What are the requirements for FRM Certification?
  • Pass the FRM Exam Part I
  • Pass the FRM Exam Part II by December 31 of the fourth year of passing the FRM Part I
  • Submit two years of full-time relevant financial risk management work experience.
2. What is the Passing Score for the FRM Exam?

In NOV 2020, the average pass rate for FRM Part I was 45% and 59% for FRM Part II.

3. What is the median salary of a Certified FRM®?

According to Glassdoor, the average annual salary for financial risk managers in the United States is $101,404. Financial risk analysts earn approximately $56,000. On the top end of the scale are senior financial risk managers or executives, who earn an average of $151,000.

4. When is the FRM® Exam offered?

Both FRM Part I and Part II have traditionally been offered in May and November. However, in 2021, this has been changed. Part I will be offered in May, July, and November, and Part II will be offered in May and December.

5. How much time do I need to dedicate to studying for the FRM® Exam?

For each part, you need to study a minimum of 200–240 hours, and you should start studying as soon as you have registered.

6. How hard is the FRM Exam?

The FRM Exam is very quantitative, and the curriculum takes a lot of time to master. There are variations in the FRM Exam questions. Some are straightforward, others appear straightforward but have a trick to them, and the wording of still others can be confusing.

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