Historical Pass Rate of FRM Exam

The FRM exam is among the hardest to crack in finance. On an average, less than 50% candidates are able to pass FRM part 1 exam. On the contrary, more than 50% candidates pass the FRM part 2 exam.

To take the FRM exam there are no professional or educational prerequisites . If you are taking both the parts of the FRM exam on the same day, then it is mandatory to pass the FRM part 1 exam to get the part 2 graded.

The FRM Exam results are announced through an email; six weeks after the exam is conducted. You are also provided with the quartile results which will basically allow you to understand how you scored on the broad areas of the exam with respect to other participants. There are no sectional cut offs, you should score an overall score to pass.

The table below gives the pass rates of FRM Exam from 2012 to 2016:

FRM Exam
Year FRM Part 1 FRM Part 2
May November May November
2012* 47.3% 46.7% 61.1% 57%
2013* 45.9% 50.9% 56.8% 58%
2014* 42.5% 48.8% 58.1% 58.7%
2015* 43% 49.2% 52% 62.1%
2016* 44.5% 44.8% 50.1% 54.3%

Note: * Data from garp.org

The FRM Exam results are announced through an email generally six weeks after the exam is conducted. You are also provided with the quartile results which will basically allow you to understand how you scored on the broad areas of the exam with respect to other participants. The passing rates are varies within a range of 40-60 % for both the parts of FRM exam.

Let’s look at the passing rates for each of the levels;

FRM Part 1 May Exam Pass Rate:

Considering the performance of past 5 years (2012-2016), it seems that Pass percentage has decreased overall but has picked up since 2014. The way overall average passing rate of FRM Part 1 May exam is 44%.

FRM Pass Rates

FRM Part 1 November Exam Pass Rate:

Considering the performance of past 5 years (2012-2016), it seems that Pass percentage of the FRM November exam has stayed constant overall. The pass percentage has varied from 45% to 51% in the last 5 years. The overall average passing rate of FRM Part 1 November exam is 47%.

FRM Pass Rates

FRM Part 2 May Exam Pass Rate:

Considering the performance of past 5 years (2012-2016), it seems that Pass percentage of the FRM part 2 May has decreased significantly from 60% to 50%.

FRM Pass Rates

FRM Part 2 November Exam Pass Rate:

Considering the performance of past 5 years (2012-2016), it seems that pass percentage of the FRM November exam is increasing and it continues till the year 2015 and a sudden decrease is shown on the year 2016. The pass percentage was high in 2015 but the general trend sets it between 54% and 58%.

FRM Pass Rates

FRM certification should be chosen if you are keen on learning and pursuing a career in Financial Risk Management. FRM gives opportunity to gain exposure in the Risk Management Industry. It gives you an edge over your counterparts and provides you a reasonable advantage over your colleagues. It requires good amount of commitment, discipline and hard work for it to be earned successfully. All the very best!

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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 providersWe provide both Online and Classroom trainings.

FRM Exam Dates and Registration Process

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 FRM 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 2017 then for registration, you must take mental notes of the important FRM exam 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 2017
FRM May-2017 Nov-2017
FRM Enrollment Fees $300 Valid for 4 years Valid for 4 years
Exam Fees If you register between these dates
Exam Early Registration $350 1 Dec 2016 – January 31 2017 1 May 2017 – July 31 2017
Exam Standard Registration $475 1 Feb 2017 – Feb 28 2017 1 Aug 2017 – Aug 31 2017
Exam Late Registration $650 1 March 2017 – April 15 2017 1 Sep 2017 – Oct 15 2017

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

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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 EduPristine FRM Course. We provide both FRM Online Training and FRM Classroom training which is taken by experts from the industry.

Eligibility and Requirements of FRM® Certification

The FRM® (Financial Risk Manager) designation is an international professional certification offered by GARP (Global Association of Risk Professionals). It is one of the most difficult but exclusive certification in the area of Finance and Risk Management

There are lucrative career options for FRM® holders have positions such as Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director, Investment Risk Management.

FRM Exam Eligibility:

As such, there are no minimum eligibility requirements to write the exam.

  • Even an undergraduate (Final Year of Graduation) is eligible to give the FRM Part 1 exam.
  • You can take the FRM Part 2 only when you complete the FRM Part-1 exam.

FRM Requirements:

The certification requirements ensure that the Quality of a FRM stays as the gold standard, by awarding the certification only to qualified individuals with relevant work experience. In order to get the FRM designation.

  • Candidates must pass the rigorous examination offered in two parts. Once they have cleared the examination, they need to have a relevant work experience of 2 years at the least.
  • A minimum of two years professional full-time work experience in the area of financial risk management or another related field including, trading, portfolio management, Academia (tenure track faculty), industry research, economics, auditing, risk consulting, and/or risk technology etc.
  • Once you have passed the FRM Exam, you need to provide the proof of your professional experience to GARP, in order to receive your certificate. You have 5 years to do this, if you don’t do it within this period, you’re FRM Exam pass status no longer holds and you will have to take the FRM Exams again.
  • GARP, after processing your work experience, will mail the certificate to you. In case you don’t receive the certificate, you have to pay a $100 fee for re-issual.
  • Candidates should have active fellow membership in GARP.

FRM Exam Deferral:

After you are successful FRM exam registration, you must have chosen a date and an exam center for writing your exam. If for some reason you don’t/can’t write the FRM exam on the designated date and wish to write your exam in the next period, GARP’s FRM Exam deferral policy gives you a provision to do so.

FRM Exam deferral policy:

An FRM candidate may only defer their exam registration once to the next examination date.

  • The first step would to apply for exam deferral. The last date for the exam deferral is the last day for the registration of exam according to the GARP calendar. Which is, 15th of April for the May exam and 15th of October for November exam.
  • A processing fee of USD 150 must be paid at the time of the FRM Exam deferral application
  • After successful deferral application, if you change your mind again and want to take the exam on time, you can do so by paying another USD 150 as a processing fee.
  • As a deferred FRM Candidate, you will automatically be re-enrolled in the next cycle. If you decide not to attend the next exam, you will forfeit all exam fees and have to re-register as a new candidate

Note: Any study materials you purchased for this year’s exam may not all be applicable for next year’s exam since the Study Guide and suggested readings will change from year to year.

FRM Exam Deferral Deadlines:

  • May Administration – April 15, 2017
  • November Administration – October 15, 2017

You can use the FRM exam deferral policy for deferring your exam, but then make the decision wisely, if you are worried that your preparation is not up to the mark. Join a FRM prep review course

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.

All the Important about FRM Exam Format

The Financial Risk Manager is an international professional certification offered by the Global Association of Risk Professionals. The FRM designation is the most valued and respected certification for risk management professionals.

The FRM Exams are focused on testing the progressive and cumulative knowledge of individuals in the area of risk management and preparing them to be a part of highly expertized global network of risk management professionals.

FRM Exam Format

When the program first started back in 1997, the exam for FRM was conducted as a single exam. This continued till November 2009. Starting May 2010, FRM exam was offered in two parts, FRM Part 1 and FRM Part 2.

  • FRM Exam is a paper-based exam consisting of multiple choice questions with 4 answer choices.
  • It is conducted only in English language across 90 testing locations worldwide
  • The FRM part 1 and part 2 exams are offered on third Saturday in the months of May and November
  • There is no negative marking for wrong answers
  • The FRM Committee is responsible for determining the passing score

Table Below shows the FRM Exam Question Pattern

FRM Exam Pattern
Details FRM Part 1 FRM Part 2
Questions 100 80
Duration 4 Hours 4 Hours
Timing Morning Session Afternoon Session

Candidates are allowed to make use of the GARP approved calculators. Only certain models of Hewlett Packard (10B II, 20B, and HP-12C) and Texas Instruments (BA II Plus) calculators are permissible. If there is a violation to this rule, then the answer sheet will not be evaluated and graded.

The results of the FRM Exam are released approximately after six weeks of the exam. The candidates receive an email indicating their pass or fail result. Candidates can view their quartile results. They can analyze their performance and area specific scores relative to other candidates.

FRM Exam Topic-Wise weightage

There are 100 MCQs in FRM part 1 exam whereas FRM part 2 exam comprises of 80 MCQs. The table below gives a topic-wise weightage of the topic areas covered in FRM part 1 and FRM part 2 exam.

FRM Exam
FRM Part 1 FRM Part 2
Topics Percentage Topics Percentage
Foundations of Risk Management 20% Market Risk 25%
Quantitative Analysis 20% Credit Risk 25%
Financial markets and Products 30% Operational Risk 25%
Valuation and Risk models 30% Risk Management and Investment Management 15%
    Current Issues in Financial market 10%

How to become Certified FRM:

In order to become a certified FRM, the candidates must follow the steps:

  1. Successfully complete the FRM Program offered by GARP
  2. Have a minimum of two years of full-time work experience in the field of financial risk management or any relative area.
  3. The required experience does not includes part-time jobs, teaching or internships.
  4. The candidate should write at least 4-5 sentences giving details of how they manage financial risk in day-to-day activities. This is required to complete the registration process.
  5. The candidates who pass their FRM Exam are required to get their work experience verified within 5 years from the date of passing the exam. Those who fail to do so are required to re-take the FRM exam to become a certified FRM.
  6. On successfully completing the FRM Exam the candidates should consult Certified FRM Resources. These resources provide additional information about submission of CVs for verification, how to use the FRM designation and receiving of FRM certificate.

The FRM certification gives you an additional advantage over your peers. The FRM designation is hard to achieve but proves beneficial in career growth. Employers across the globe are seeking certified FRMs for their expertise and skills required to cater to the financial risk management. The FRM Program is designed to give a state-of-the-art skills that are required in the dynamic market.

There are several industries like central banks, commercial banks, investment banks, corporations, asset management firms, consulting firms, insurance firms, risk and technology vendors, government agencies, hedge funds etc. open for Certified FRMs.

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.

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All Important Frequently Asked Questions About FRM

FRM FAQs

FRM today is one of the most prestigious and rewarding certifications in Finance. The candidates appearing for FRM exams face many doubts and queries regarding the certification and exams. Some of the frequently asked questions are discussed below. Get all the answers to your queries here.

Eligibility and Requirements related Queries:

Q. What are the minimum eligibility requirements for FRM exam?

Answer: There are no minimum eligibility requirements for appearing in the FRM exam. However, in order to be certified as a Financial Risk Manager, the following are required:

  • A passing score on the FRM Examination
  • Active Fellow membership in the Global Association of Risk Professionals (GARP)
  • A minimum of two years’ experience in the area of financial risk management or another related field including, but not limited to, trading, portfolio management, academic or industry research, economics, auditing, risk consulting, and/or risk technology

Q. What if I do not have relevant work experience?

Answer: Please note that there is no eligibility requirement for appearing for the FRM exam. So, one can appear for the FRM exam, clear the same and then get the relevant work experience and then get the certification.

If one passes the FRM exam (Full exam or both Part-1 and Part-2) but does not have the 2 years of relevant work experience, GARP issues a letter stating that the candidate has passed the FRM exam. The candidate will be considered as "FRM Holder" but not "Certified FRM Holder". The candidate can use the FRM designation only after submitting the proof of the 2 years of work experience to GARP, and after receiving the GARP confirmation that the candidate has been formally included on its registry of certified FRM holders.

However, one can list the following statement on your CV/Resume: "FRM Program: Passed Parts I & II". This certainly adds value to the resume.

How much time do I have to complete the FRM Certification process?

Answer: Once a candidate passes the FRM Exam Part I, he/she must then pass the FRM Exam Part II within 4 years. Candidates have 5 years from the date they sat and passed the FRM Exam Part II to have their work experience verified.

Q. Does an internship position count towards my two years of experience?

Answer: No, unfortunately, the program required two years of professional experience, and an internship position does not meet these requirements.

Registration Related Queries:

Q. If I fail the FRM Part 1 Exam , am I required to re-take the exam within a certain period of time?

Answer: No. There are no restrictions on when you can re-register for FRM Exam Part I. If you re-register you will be required to pay the exam fee only, you do not have to pay the enrollment fee.

Q. I have passed the FRM Part 1 Exam . Am I required to register for the FRM Part 2 Exam within a certain period of time?

Answer: Yes. Once a candidate passes FRM Part 1 Exam they must pass FRM Part 2 Exam within 4 years. If a candidate fails to pass the FRM Part 2 Exam within that timeframe, they must start the program all over again and re-enroll in the FRM Exam Program.

Q. I have passed the FRM Part 1 Exam and FRM Part 2 Exam, is there a time limit when I have to submit my CV/resume?

Answer: Yes. Once you pass both the Parts, you have 5 years from the date you passed the FRM Part 1-2 exam to submit your CV/resume to GARP’s Resume Builder. If you fail to submit your CV/resume within the 5 year timeframe then you will have to retake the FRM exam to become a certified FRM.

Q. Can I get a refund?

Answer: GARP does not provide refunds for either the Exam Enrollment or Exam Registration Fee.

Q. Can I transfer my Exam registration to another candidate?

Answer: No. Candidates cannot transfer a registration to another candidate

Q. When is the deadline to pay for the FRM Exam?

Answer: In order for your Exam registration to be considered complete, payment must be received by GARP no later than midnight (New York time) on the closing date of each registration period.

Administration Exam Deadlines:

Month Wise Application Process Closing date
May Early Registration January 31, 2016
Standard Registration February 29, 2016
Late Registration April 15, 2016
Scholarship February 29, 2016
ADA/RAD Application February 29, 2016
Deferral April 15, 2016
Change Exam Site April 15, 2016

 

Month Wise Application Process Closing date
November Early Registration July 31, 2016
Standard Registration August 31, 2016
Late Registration October 15, 2016
Scholarship August 31, 2016
ADA/RAD Application August 31, 2016
Deferral October 15, 2016
Change Exam Site October 15, 2016

FRM exam preparation Related Queries:

Q. How much preparation would I need for the FRM examination?

Answer: The FRM is a challenging and demanding exam covering a range of risk management concepts and issues. We believe that candidates should begin their exam preparations as soon as they receive their study materials and aim to spend a minimum of 250 hours reviewing the exam syllabus, working through the practice questions and doing the practice exams. This includes the time that you spend on your BPP course.

Q. What textbooks do I need to purchase to prepare for the exam?

Answer: The study material that EduPristine provides has been written to comprehensively cover the entire FRM syllabus. The study material effectively summarizes all the core readings of the FRM syllabus to help you understand the required risk related concepts and apply them in an exam related way. Should you wish to read the original core readings, these can be purchased from the GARP Digital Library or from other bookstores.

Q. How many hours will I need to study to prepare for the Part 1 and Part 2 FRM Exams?

Answer: GARP recommends approximately 150 to 200 hours of preparation for each Part of the exam, for a total of 300 to 400 hours of preparation. You can refer to our FRM Topic-wise time allocation chart to plan your exam preparations.

FRM Exam Format Related Queries:

Q. What is the format of the FRM Part 1 Exam?

Answer: The FRM Part 1 Exam is the first of two exams in the Expanded FRM Program. The Part 1 Exam is a 4-hour exam containing 100 multiple-choice questions. The exam is split into two equal sections of 2 hours each and is given in booklet form.

Topics Covered in the FRM Part 1 Exam and their weightage:

TOPICS

WEIGHTAGE

Foundations of Risk Management

20%

Quantitative Analysis

20%

Financial Markets and Products

30%

Valuation and Risk Models

30%

Q. What is the format of the FRM Part 2 Exam?

Answer: The FRM Part 2 Exam is the second exam in the Expanded FRM Program. The Part 2 Exam will be offered for the first time in May 2010 and is a 4-hour exam containing 80 multiple-choice questions. The exam is split into two equal sections of 2 hours each and is given in booklet form.

Topics Covered in the FRM Part 2 Exam and their weightage:

TOPICS

WEIGHTAGE

Market Risk Measurement and Management

25%

Credit Risk Measurement and Management

25%

Operational and Integrated Risk Management

25%

Risk Management and Investment Management

15%

Current Issues in Financial Markets

10%

Other Queries (Comparison, Fee structure, pass rates):

Q. How does the FRM curriculum compare to the CFA curriculum?

Answer: The FRM certification complements the CFA Program Charter. The FRM curriculum provides more detail on areas of financial and non-financial risk while the CFA curriculum provides a broad view of financial analysis in general. The FRM Part 1 material will overlap with part of the CFA curriculum, mainly in the areas of quantitative analysis, portfolio theory, derivatives, and fixed income securities. The FRM and CFA overlap at Part 2 is minimal; however, some concepts that are mentioned briefly in the CFA curriculum, such as value at risk, credit risk, risk budgeting, and hedge funds, are expanded upon in this section of the FRM curriculum. Exclusive to the FRM exams are readings on operational and integrated risk management, Basel II, current issues in financial markets, and case studies in risk management. The FRM exams tend to have more of a quantitative focus than the CFA exams.

Q. What are the fees involved for the FRM Part 1 Exam in May 2010?

Answer: The fee structure for FRM part 1 exam is given in the below table.

Q. Do I need to read the GARP recommended readings, or can I just use EduPristine Study Notes?

Answer: EduPristine Study Notes are written to be an essential complement to GARP’s recommended readings for the 2010 FRM Exams. The decision as to whether or not to read the recommended readings is up to you, and often depends on your own academic background, strengths, and weaknesses.

Q. What is the FRM’s historical pass rate?

Answer: You can refer to EduPristine’s page to get the updated data on pass rates for FRM Part 1 and Part 2.