April 24, 2015
To reach any post or designation you need to know how to get there and how you plan to get there is one of the most important step. You can’t eat the sandwich before buying the bread; similarly you can’t become a FRM before following the set path. The first milestone that you have to overcome is to know all about the FRM exams and its certification.
Financial Risk manager (FRM) designation is given by the Global Association of Risk Professionals (GARP) and is the most globally respected and accepted certification for Financial Risk Management.
Things to do Before FRM Registration
There are certain things that one must keep in mind before registering for the FRM exams.
• Get your current and valid passport/driver’s license read. No other identification proof will be accepted regardless of their value. Only a currently valid original passport or driving license issued a country will be accepted.
• Make sure your name on the passport/ driving license is spelled in the same way when you register. That is the only acceptable name; else you will not be allowed to take the exams. The name should be spelled in phonetic letters and not in any other script.
• Download the FRM Program Guide
• Evaluate your need for Americans with Disabilities (ADA), or request another exam date for religious reasons (RAD).
• Decide where you want to take the exams.
• Go through the GARP’s exam policies
Eligibility: There is no professional or educational qualification required to sit for the FRM examinations.
FRM Exam Registration: To register for the FRM exams you need to log on to www.garp.org There is a one-time enrolment fee that you have to pay US $300. You can pay the FRM exam registration fee in any of the three registration periods:
FEES US $
It is best to pay the fees in the early phase. That way you save your money as well as get quicker access to the study material.
FRM Study Material
GARP provides free FRM exam study guides(title=FRM free study material by GARP) PDF’s but to purchase the official books you have to pay their cost as well as the shipping charges.
EduPristine also provides free study material for the FRM exam. You can download it from here
There are two sets of exams that a candidate has to clear after which they have to complete 2 years related work experience in the area of financial risk management or another related field including, but not limited to: trading, portfolio management, faculty academic, industry research, economics, auditing, risk consulting, and/or risk technology to get the FRM certification.
FRM Level 1:
It is conducted in the morning session consisting of 100 multiple choice questions to be answered in the maximum time of 4 hours.
Syllabus for FRM Level 1:
It contains 4 topics, namely:
• Foundation of Risk Management (20%)
• Quantitative Analysis (20%)
• Financial markets and products (30%)
• Valuations and Risk models (30%)
FRM Level 2: You can give FRM Part 2 on the same day because it is conducted in the afternoon. But the candidate needs to receive a passing score from GARP for part 1 before they can mark part 2. It consists of 80 multiple choice questions to be completed in a maximum duration of 4 hours. It is advisable to take both the exams separately.
Syllabus for FRM Level 2: It contains 5 topics, namely:
• Market Risk management (25%)
• Credit Risk Management (25%)
• Operational and Integrated Risk Management (25%)
• Risk Management and Investment Risk Management (15%)
• Current Issues in Financial Markets (10%)
To know in detail about the syllabus and the sub-topics, visit this page
FRM Exam Centers: There are 90 exam sites all around the world. Although the city may remain the same each year the location within the city is subjective to change.
FRM Exam Dates: FRM exam for both the parts are held twice a year in the months of May and December.
Usage of Calculators: Calculators can be used by candidates but should be GARP approved (GARP approved calculators for FRM exam). If found using other calculators the candidate’s paper will not be graded.
Work Experience: After the completion of FRM part 1 and 2, it is very important to demonstrate 2 year related work experience. If failed to do so the FRM certification will not be granted.
Recruitments and job opportunities after FRM: There is a high demand for FRM holders by the top rated companies and banks of the world. Companies and banks that are recruiting FRM’s are:
• Bank of China
• JP Morgan Chase
• Bank of America
• Wells Fargo Co.
Get detailed view of the careers and designations after getting the FRM Certification here
FRM Training: EduPristine provides online as well, as classroom training for FRM Exams .They follow the guidelines set by GARP and develop their students in such a way that they outsmart all the other candidates.
Don’t fumble, for even if you do rise up and achieve all the milestones in the way and at the finish line the FRM Certification will be greeting you with open arms. All the best and work hard!