Financial Risk Management (FRM®): An enriching Career Option

Global Association of Risk Professionals (GARP, USA) offers FRM Program to all risk management Professionals. It’s a globally recognized professional certification. On successful completion of the course, a candidate is offered a ‘FRM Charter’. There are over 26000 FRM charter holders around the globe.

FRM charter holder candidates work in number of industries that includes:

  • Investment banks
  • Commercial banks
  • Central banks
  • Asset management firms
  • Consulting firms
  • Hedge funds
  • Insurance firms
  • Credit agencies

FRM Exam Details:

There are neither educational prerequisites nor professional prerequisites to take FRM exam. However, to become a certified FRM charter holder, candidate needs to follow FRM Program as outlined:

The FRM exam handbook is prepared in a way to meet the requirements of the candidates.

FRM Course Details:

FRM Part I

FRM Part II

FRM Exam Format:

  • FRM exam is a pencil and paper, MCQ (Multiple Choice Question) exam.
  • It’s held twice in a year in the month of May and November.
  • The language is common for all; English.
  • Candidate needs to pass FRM PART I exam in order to have Par II graded
  • Both the exam FRM I and FRM II are four hours long.
  • FRM Part I exam is held in the morning and FRM Part II in the afternoon.
  • No Negative marking for incorrect answers
  • Only GARP approved calculators are allowed to be used in the exam
  • Exam Result is sent via Email approximately after 6 weeks of the exam
  • Candidates are provided with quartile results which demonstrates how he/she has performed in specific areas in comparison to other candidates

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About EduPristine:

Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading authorized Training providers for Finance Certifications like CFA®, PRM, FRM, Financial Modeling etc. EduPristine strives to be the trainer of choice for anybody looking for Finance Training Program across the world.

To improve your subject knowledge and perform better in your exam, we have an array of offerings which includes:

FRM Online Classes

Topic Wise Quizzes

Doubt Solving Session

For more Information about our Course Details write to us at help@edupristine.com

Advantages and Application Process of FRM

FRM (Financial Risk Manager) Certification gives you a distinctive edge from the other risk management professionals operating in the Finance and Investment field. Most of the top employers recognize and appreciate the certification. FRM Course provides candidates with all the necessary knowledge and understanding of how Risk Management field operates.

Application process of FRM Exam

For instance, if anyone is already a risk professional, then FRM comes to their aid in many ways:

  • It will give the candidate a better understanding to resolve the risks involving money and investment. Moreover, it will broaden their skill set as a risk professional
  • For people who are not risk professionals, FRM provides a perfect pathway to change the career and explore the wonders of risk profession.
  • It is a loud message that candidates are competent enough to handle any real-life situation. The benefit is best reaped if they are hailing from the finance background.
  • Financial risk managers in the USA can earn anywhere between US$ 100,000 and US$ 250,000. They normally receive various fringe benefits – which include pensions after retirement, health and life insurance as well as paid vacations. The average salary of FRM in India is 9 lakhs per annum.
  • The skills that FRM Certification incorporates in a professional are invaluable and the it provides them with state of the art knowledge that is required in the field.
  • There are a lot of career option after getting FRM certification viz. Risk Management Analytics, Risk qualification Manager, Operational risk analysts, Enterprise Risk Manager, Risk Qualification Manager etc.

Eligible Candidates:

There are no educational or professional pre-requisites required to enroll for the FRM Program.

  • It is open for all professionals who are involved in risk management, investment industry, and finance industry; all can enhance their knowledge through FRM Program.
  • The individuals who wish to make a career shift, from non-risk backgrounds can enroll for the FRM Course to surf across wide range of increasing opportunities in the field of risk management.
  • The students who are still pursuing their post-graduation and complete any graduation like B.Tech, MBA, or any finance graduation also go for FRM certification, as it gives them the expertise to handle and manage risks, investment and money.

Application Process:

With FRM exam round the corner, candidates are probably buried under those big fat books on quant and risk management. We suggest that you finish FRM November 2017 exam registration by 28th February. Late registration is open between 1st March – 15th April 2017 but for an additional exam fee of $175.

To make FRM November 2017 registration simpler, we are posting the step by step snapshot for FRM exam registration. So, you don’t have to worry about how to register for FRM November 2016 exam.

Step 1

FRM Exam

Step 2

FRM Exam

Step 3

FRM Exam

After filling the form, candidates can select the membership auto renewal with one time enrollment fee of USD $400. This will automatically renew candidates Individual Membership at the prevailing rate (USD $195.00) on the day their membership is due to expire using the same credit card used for this registration. There are no refunds given under any circumstances.

Important Dates
Last Date Registration Fee
1st December 2016 to 31st January 2017 Early Registration $750
1st February 2017 to 28th February 2017 Standard Registration $875
1st March 2017 to 15th April 2017 Late Registration $1050

FRM Scholarships:

GARP with an aim to provide the future leaders an opportunity to sit for the FRM Exam introduced the FRM Scholarships irrespective of  the candidates’ capacity for self-funding.

  • The scholarship is available for FRM Part 1 exam only and not FRM Part 2
  • FRM Scholarships cover the exam registration fee and not the enrollment fee
  • The scholarship is awarded based purely on merit and the decision lies solely with the FRM committee
  • Students should be enrolled full time in a graduate program, at the time of the exam and as such, under graduate students are not eligible for the FRM scholarships
  • Faculty members are deemed eligible if they can demonstrate full time employment.
  • Students must demonstrate full-time enrollment in a graduate degree program at the time of the Exam
  • Qualified students and faculty members are entitled to one scholarship per lifetime. There are no exceptions to this

Process of FRM Scholarships:

  • GARP begins accepting applications from November 1st for the May exam and from May 1st for the November exam. The deadlines are Feb 28th and Aug 31st respectively
  • Candidates who are applying for the scholarships must pay the Enrollment and registration fees. If they are awarded the scholarship they will get a refund for the exam registration fees which is covered under the scholarship
  • Applications received after the deadlines are not considered under any circumstances
  • Scholarships cover the cost of the exam registration fee only
  • Scholarships are awarded based on merit, and the final decision is at the sole discretion of GARP

If you have already made the decision of going for FRM and are looking for a training institute, then EduPristine is a great option as we are GARP authorized training providers We provide both Online and Classroom trainings.  

CFA® Program vs FRM Certification : Battle of Financial Certifications

CFA® Program vs FRM

For all the students going for International Finance Certifications, it is the most common point of debate whether to go for CFA® Program or FRM or both. Both certifications have international recognition and offer a wide range of enriching and rewarding career prospects. This is where the question arises “CFA vs FRM: Which certification to go for?”

It is very crucial for students to choose the right certification as for both certifications they have to put a lot of money, dedicate all their time and study rigorously. This all shouldn’t go as a waste. Moreover, they have to live with the career they choose and few years down the line they shouldn’t regret their choice. To an informed person, there might be a world of difference between these two certifications, but to a novice there is very little difference.

Let’s take a look at both of these certifications, their scope as a career and their prospects.

CFA® Program

The Chartered Financial Analyst® designation was originally intended for equity analysts working in the investment banking sector. Over a period of time (since its inception in 1963), its scope and importance has been recognized to the level where the CFA® Program now is often compared to Masters in Business Administration (MBA).

It has become one of the de-facto certifications that a professional graduate goes for when trying to target some specific positions in the investment and banking industry.

Career Prospects and Roles as a CFA® charterholder:

  • Portfolio Managers
  • Fund Managers
  • Risk Managers
  • Financial advisers
  • Private bankers
  • Consultant
  • Research Analysts
  • Accountants
  • Chief Executives
  • Auditors
  • Hedge fund Research
  • Investment Banking
  • Investment Management
  • Relationship Manager

Eligibility Criteria for CFA® exam:

  • A bachelor’s (or equivalent) degree or be in the final year of your bachelor’s degree program
  • Four years of professional work experience (does not have to be investment related)
  • A combination of professional work experience and education that totals at least four years (part time experience not counted)

FRM Certification

The Financial Risk Manager (FRM®) certification was originally intended for candidates who wanted to pursue the profession of a risk manager in financial institutions.

With increasing business competition and rapid changes in the finance industry, businesses require professionals who can manage risk, money and investment efficiently. This has raised the importance of Financial Risk Management and thus given this certification a recognition which it deserves.

Career Prospects and Roles as an FRM charterholder:

  • Chief Risk Officer
  • Senior Risk Analyst
  • Head of Operational Risk
  • Director
  • Investment Risk Management

Eligibility Criteria for FRM exam:

  • No educational or professional pre-requisites required to sit for either part of the FRM Exams
  • Minimum of two years of full-time professional experience required in risk-related profile

FRM Certification vs CFA® Program comparative analysis

The course contents of FRM and CFA® Program also vary a lot from each other. The CFA® Program covers more on financial analysis, ethics, asset valuation and portfolio management, whereas FRM covers more topics on risk, valuation at risk, models of risk, credit risk and so on. There is some common overlap between these two courses which are areas like credit derivatives, hedge funds, fixed income, basic statistics, risk/return metrics and correlation.

NOTE: The areas which do not overlap are as diverse as the careers they cater to.

Head-to-Head comparison:

FRM Certification
CFA® Program
Conducted by
GARP
CFA® Program
Exam Parts
FRM Part 1
FRM Part 2
CFA® level I
CFA Level II
CFA Level III
Fee (indicative and overall)
FRM Part 1 – $650 to $950
FRM Part 2 – $350 to $650
CFA® Level I – $1080 – $1660
CFA® Level II – $1070 to $1650
CFA® Level III – $1060 to $1610
Pass rate (Approximate)
40% to 45%
35% to 42%
Exam Months
May/Nov
June/Dec
Relevant For Candidates looking for jobs in
Banking, Risk Management, Financial Institutes
Research, KPO, Investment banking
Course Stucture:
Emphasis on
Quants,derivatives, Portfolio Management,
Market Risk, value at Risk, Credit Risk, Operation Risk & Basel
Quants, FSA, Ethics,
Economics, Corporate Finance, Equity, Fixed Income
Kind of Qustions Asked
Multiple choice questions
Multiple choice questions
FRM vs CFA® Salary (Average)
US – $70,000
India – INR 5,00,000
US – $75,000
India – INR 6,00,000
EduPristine Official Course Provider
CFA® Program Course Page
FRM Certification Course Page

Seeing the overwhelming response on this topic, we have created a video. Check it out!

Authorized by CFA Instititute and GARP for CFA® Program and FRM respectively, EduPristine provides the best online and classroom training for these courses

We hope this comparative analysis will help you in choosing the right career for yourself. In case of any queries or doubts about these certifications, feel free to comment below.

Topics and Structure of FRM Exam

FRM Exam Structure

The FRM exam is administered by GARP. The members of the FRM Committee are from diverse backgrounds having expertise in their risk professions. GARP is responsible to form a committee that includes professionals covering all the aspects of financial risk management. A regular survey is made across different financial and investment industries to synthesize the knowledge and skills that are required in efficient risk management.

Difficulty of FRM Exam

The FRM exams are among the most difficult to crack in Finance.  In the past lots of FRM candidates did not clear FRM Part 1 and Part 2 exams in first attempt. Prior to 2009 there was only one FRM exam. After 2009, the FRM exam was split into two parts. GARP made the change to offering one exam at a time, twice a year (May and November). Now during the last 5 years on an average, less than 50% candidates are able to pass FRM part 1 and more than 50% candidates pass the FRM part 2 exam.

Main topics of FRM Exam

FRM part 1

There are 100 MCQs in FRM Part 1 Exam to test the candidate’s knowledge in the areas of risk management, financial markets and products, quantitative analysis and essential risk modelling.

FRM part 2

This part comprises of 80 multiple-choice questions in the areas of market risk, credit risk, operational risk, integrated risk management and current financial market issues

The table below gives a topic-wise weightage of the topic areas covered in FRM exam

FRM Exam
  Topic Weightage (%)
FRM part 1 Foundations of Risk Management 20
Quantitative Analysis 20
Financial markets and Products 30
Valuation and Risk models 30
FRM part 2 Market Risk 25
Credit Risk 25
Operational Risk 25
Risk Management and Investment Management 15
Current Issues in Financial markets 10

Exam Guidelines:

It is important to note that Part I and Part II of the FRM Exam must be passed sequentially. Therefore, while it is possible to sit for both parts of the examination on the same day, candidates must receive a passing score on Part I before GARP will mark their Part II examination. Most candidates elect to take Part 1 and Part 2 on separate Exam administration days.

  • There aren’t any penalties for incorrect answers
  • If candidates appear for FRM Part I and II at the same time then they have to pass part 1 otherwise exam for part II would NOT be evaluated.
  • If you pass part I and fail in part II, you would still get a passing letter for Part I
  • The passing score is decided by the FRM Committee
  • Only GARP-approved calculators are allowed to be used at the FRM examination
  • Exam results are in a binary format, with either pass or fail being awarded
  • The results are published in approximately six weeks via email once the examination is run
  • Quartile results are provided to the candidates so they can check their performance in the topic areas

FRM Registration Process

The Exam registration fee for FRM is not fixed. It depends on when you register for it. The earlier you make up your mind to take the exam, the lesser you will have to pay.

It has three deadlines and there is a onetime enrollment fee that is a sum of $300. You need to pay the onetime enrollment fee to enroll into the GARP.

One time enrollment fee (USD) Registration wise Fees (USD)
300 Early 350
Standard 475
Final 650

EduPristine is an authorized training provider for FRM Course by GARP. Our world class facility and the level of faculty will never disappoint you throughout the whole process to become a Financial Risk Manager.

Important dates and Registration process for FRM-2016

FRM Certification is a globally recognized professional certification for banking and finance professionals by Global Association of Risk Professionals (GARP, USA) and the first step towards this is getting yourself registered for the FRM Exam. The exam is divided into two parts which must be taken consecutively. Registration can be done online at the GARP website.

The FRM Exams are offered twice in a year on the third Saturday in May and the third Saturday in November. If you are planning to give the FRM exam in 2016 then for registration, you must take mental notes of the important dates to avoid missing out on any of the opportunities.

Here are a few important dates pertaining to the FRM Exam:

Important dates for FRM 2016
FRM May-16 Nov-16
FRM Enrollment Fees $300 Valid for 4 years Valid for 4 years
Exam Fees If you register between these dates
Exam Early Registeration $350 Dec1, 2015 – January 31, 2016 1st May 2016 – 31st July 2016
Exam Standard Registration $475 Feb 1, 2016 – Feb 28, 2016 1st Aug 2016 – 31st Aug 2016
Exam Late Registration $650 March 1, 2016 – April 15, 2016 1st Sep 2016 – 15th Oct 2016

Once you know the deadlines for registration, you can proceed further by getting yourself registered with the registration as per your convenience by following the below procedure:

1.Go to the FRM Exam registration page.


FRM Important Dates

This is for GARP registration. Once you will fill all the details and click on the green button, a FRM account will be created for you on the GARP website. This registered email id and password will work as login credentials for your GARP Account.

2. Once you have moved to the next screen, the following page will appear:


FRM Important Dates

As there is a lot of information asked on this page. We’ll help you to fill the information for each part:

i. Exam Information


FRM Important Dates

In the ‘register for’ field, choose which exam you want to register for. You can register either for FRM part I or both FRM part I and II.

In the exam test site field, the various test centre cities across the globe are listed. You can choose from them, the centre of your preference from the drop down menu.

ii. Mailing Address:


FRM Important Dates

You can give either your home or work address depending on your needs. Don’t enter the country code in the phone number field.

iii. Job Information:



In the company name field, you can either choose your company name from the drop down list or enter the name of the company. Similarly for Corporate title, choose your job title from drop down or enter it manually.

In the job function field, only the dropdown works. Choose the Job function closest to your job description or choose “other” if none in the field apply. Similarly for type of organization, choose the type that closely describes your company or choose “other” if none apply.

iv. How did you hear about us?


FRM Important Dates

This field asks about how you get to know about FRM program. You can either scroll through them all or scroll down completely and choose “other”, depending on your patience level.

v. Privacy Policies


FRM Important Dates

As said earlier, from the information you have provided on the first screen, an account for GARP would be created. In the privacy policies section you can choose if you would like to be contacted by GARP or its partners. Check the second box for this.

You can also choose if you would like to be contacted by GARP authorised training providers like EduPristine regarding their training packages. This would help you to look at some very good training providers at competitive prices. We would suggest you to choose this option. Check the first box for this.

Once you have checked the appropriate options. Click on the “continue onto payment button”.

3. Payment


FRM Important Dates

On the payment screen, there’s an option for you to buy official FRM books for an additional $250. If you’d like to buy them, check the box beside the image of the books.

There are 4 methods to make the payment:

  • Credit Card
  • Credit card via FAX (Processing fee of $50)
  • Pay with check (Processing fee of $50)
  • Pay with wire transfer (Processing fee of $50)

If you choose credit card, the following screen appears:


FRM Important Dates

Fill in your credit card details and choose “use different address below” to enter a billing address different from the mailing address. GARP also gives you an option for auto renewal for its membership, if you’d like to opt for it. Check the box.

If you choose any other option besides Credit card, you’ll be mailed the details of payment procedure on the email address you have shared.

After the registration, all you have to do is check the FRM syllabus . For preparing yourself you can either opt for self-study or get professional training from an institute of repute like EduPritine. We provide both online and classroom training which is taken by experts from the industry.

Process of receiving the FRM Certification

FRM is a globally recognized professional certification for banking and finance professionals by Global Association of Risk Professionals (GARP, USA) .It is fairly difficult and exclusive certification in the area of Finance and Risk Management and require a lot of effort and hardwork for getting certified.

Below is the step by step procedure of receiving the FRM Certification

Register and give the exam

  • In order to get the certification, you need to register yourself first followed by passing the two examinations.

Obtaining Your Results

  • Once the results are declared, emails will be sent to all the candidates who appeared for the FRM exam along with their quartile score that will enable them to check how they scored in different areas of the exams relative to other candidates.

Re-registration

  • After result declaration, it’s celebration time for those who passed the exam however those who do not get passing score are encouraged to retake the exam by registering themselves for the next administrative date.
  • Those who appeared for FRM part 1 exam and get passing score are equally encouraged to register themselves for FRM Part 2 exam. Additional program fees is not charged from the returning candidates however early and late registration discounts and penalties are applicable respectively.

Work Experience Requirements

  • For getting FRM designation, you must pass both FRM Part 1 & FRM Part 2 exam with a minimum 2 years of fulltime professional experience in the area of financial risk management or another related fields.
  • After passing both the exams, you need to submit the CV mentioning your professional experience for verification. Once the results will be declared by GARP, an email will be sent to all the eligible candidates along with the procedure regarding how to submit the CV’s for the professional experience demonstration. A brief statement will also be sent to you describing how to manage financial risk in your day to day work.
  • Your professional experience must be of two years of full-time working in the risk management or any other related field. Experience completed for school will not be considered, including internships, part-time jobs, or student teaching.
  • Five years’ time will be allotted to you from the date you will pass the FRM Part 2 exam for getting your work experience verified. This can be done by submitting professional experience online.
  • If you fail to submit the professional experience details within 5 years’ time frame then you will have to re-enroll in the FRM Program and retake the FRM Exam again as a new candidate.
  • Once you will be designated as a Financial Risk Manager, you are encourage to further develop your risk management skills and knowledge through Continuing Professional Development (CPD) Program provided by GARP. This helps you to develop the expertise and stay updated in dynamic industry.

Receiving Your Certificate

  • For receiving your certificate you need to pass both the parts of FRM exam followed by two years of professional work experience in the field of risk management or any other relevant field.
  • You are not allowed to use the FRM designation till the time GARP verifies your work experience requirements.
  • Certificates will be sent to you via the United States Postal Service and delivery may take up to 10 weeks depending on the mailing address provided by you.
  • In case the certificate will not be delivered to you due to incorrect or insufficient address then a fees of $100 will be charged for reissuing the certificate.
  • GARP members who have lost their certificates, or wish to receive a duplicate certificate will be charged $100 replacement fees for getting the certificate.
  • Candidate can either fax the request for certificate to GARP at +1.201.222.5022, or send it via email to memberservices@garp.com.
  • Credit card information and expiration date need to be provided by candidate in order to have their certificate re-issued.

This certification is important for those who wants to make their career in the field of risk management. EduPristine provide both online and offline training to the FRM aspirants by industry experts from the industry.