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 Exam is 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|
|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 Part 1||FRM Part 2|
|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:
- Successfully complete the FRM Program offered by GARP
- Have a minimum of two years of full-time work experience in the field of financial risk management or any relative area.
- The required experience does not includes part-time jobs, teaching or internships.
- 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.
- 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.
- 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.