FRM Certification (Financial Risk Manager) - Exam, Course, Admission, Eligibility, Syllabus & Pattern

FRM Certification: Overview

FRM Certification: Eligibility

Although there are no specific FRM eligibility criteria which have been published by GARP regarding prospective FRM candidates, the certification requirements help delineate the basic eligibility criteria for FRM.

The FRM certification requirements include the two major aspects:

• The candidate needs to clear FRM Exam Part I and Part II in chronological order and within the prescribed time limit.

• The candidate needs to demonstrate and document at least 2-years of full time work experience in financial risk management.

Therefore, in order to fulfil the work experience requirement for certification, the candidate needs to meet the following eligibility requirements:

• The candidate should have completed an undergraduate qualification in a domain related to finance or in any other domain with relevant work experience associated with financial risk management.

• The candidate must have a working knowledge of the concepts associated with financial risk management.

FRM Certification Process

In order to obtain an Financial Risk Manager from GARP, there are a number of steps which prospective candidates need to follow to obtain the professional accreditation:

• Candidates must enroll to GARP and register for the FRM Exam Part I through the ‘new candidate’ pathway by creating a registration ID and paying the FRM fees.

• Upon successful payment of the FRM fees, the candidates will be able to access their GARP account and schedule their test.

• Candidates can pick a suitable test centre from over 100 test cities around the world for the specific exam date of application.

• Study material for FRM can also be accessed online through the candidate’s GARP account. This includes sample papers, official books, and study guides.

• The FRM books require payment additional to the FRM fees and therefore contribute toward the overall FRM certification cost.

• Candidates must first clear the FRM Exam Part I before they can opt for FRM Part II. In case the candidate opts for both the exams on the same day (in subsequent time slots), then the Part II scores will only be calculated if the candidate clears Part I.

• Upon clearing FRM Part I, candidates have up to 4 years to give and successfully clear FRM Part II.

• Candidates need to demonstrate and subsequently document at least 2 years of full-time work experience. This must be done within 5 years from the date of the candidate’s FRM Exam Part II.

• The certification will be awarded to candidates after documentation of requisite work experience. Candidates can maintain the value of their FRM certificate through continuing professional development.

FRM Exam Dates

FRM exams are now held 3 times a year for candidates opting for Part 1, and twice a year for candidates opting for Part 2. The FRM exam dates are generally in May, July, November and December for each year. Registration begins around 4-5 months prior to the exam month. The dates for 2024 are announced. The FRM exam dates for 2023 and 2024 have been given below to give candidates an approximate idea.

FRM Exam Dates 2023

FRM Certification Cost

The overall Financial Risk Manager cost comprises FRM exam fees, enrollment fees, membership fees to GARP and expenditure incurred for FRM books and study material. The FRM fees in India and registration fees differ for first-time candidates and returning candidates. For new candidates, only FRM Part I is open for registration and the FRM fees comprise both the enrollment and the exam fee. On the other hand, returning candidates are exempt from paying the enrollment fee and only have to pay the FRM exam fee.

The FRM fees for registration for the May 2024 exam have been listed below for both new and returning candidates.

FRM Exam Fees (FRM Part I/Part II)

Note - The Enrollment Fee is paid by candidates upon their initial registration. Returning students need not pay any exam registration fee.

Candidates can subsequently chose to maintain their GARP membership if they want to although it is not necessary to be a GARP member in order to sit for the FRM exams.

FRM Fees: GARP Membership Fee

Candidates can pay the FRM certification cost through online methods, wire and check. Check payment of the FRM fees is only valid if the account concerned is with a bank in the US. For international candidates, only the online methods of payment are acceptable which include payment through MasterCard, Visa or Amex Check. For manual payments (not through online payment methods) a processing charge of USD $50 is applicable in addition to the FRM fees.

FRM Syllabus

The syllabus for the two FRM exams differs with FRM syllabus for Part I being associated with various tools which are used in assessing financial risk and Part II having topics associated with the implementation and application of these tools. The FRM syllabus has been released by GARP, the conducting body, and covers the various topics for both Part I and Part II. The official syllabus for each of the FRM exams has been provided in the tables below.

FRM Syllabus - FRM Exam Part I

FRM Syllabus - FRM Exam Part II

FRM Exam Pattern

Both of the FRM exam parts are 4 hours in duration and feature questions which are multiple-choice in nature. Part I deals with various tools which are used to assess financial risk. This includes fundamental risk management, quantitative analysis, valuation and risk models and financial markets and products. FRM Exam Part II is associated with the application of the tools delineated in Part I. This includes current market issues, investment management, along with credit, market and integrated and operational risk management.

The FRM exam pattern for both of the parts has been provided below.

FRM Exam Pattern

FRM Study Material

In order to prepare for FRM efficiently, prospective candidates can access the various study material which has been provided by GARP. This includes a number of different sources and formats such as:

• FRM 2024 study material: Each year, GARP releases a new set of study material for FRM. This study material is available for download to applications after completing the FRM registration process.

• FRM practice exams: GARP provides prospective FRM candidates with practice tests for both Part I and Part II.

• FRM Books: There are two sets of FRM books which cover the topics delineated in the FRM syllabus. These sets are divided into separate sets for both the parts of the FRM exam and are available for candidates for online purchase. Additionally, the FRM books are also available in ebook format.

FRM Books: Details

All the sets of FRM books are four volume sets with each volume focusing on a specific area of study. Additional shipment charges apply for all the FRM books purchased and for FRM ebooks, candidates are provided access to digital material for up to 3 years from date of purchase. These books are to be paid for separately in addition to the FRM exam fees for students who require comprehensive preparation material which covers the entire syllabus.

FRM Exam Day Requirements

There are a number of things that FRM aspirants are required to carry on the date of the exam. This includes:

• A printed FRM admission ticket. This can be downloaded and printed from the candidate’s GARP registration ID.

• A current and valid government-issued photo ID such as passport or driver’s license.

• A GARP approved calculator with cleared memory. Candidates with an unapproved calculator will not be eligible for the test grading process. The acceptable calculator models are:

• 
  

  • Hewlett Packard 12C/12C Platinum

  • Hewlett Packard 10B II/II+

  • Hewlett Packard 20B

  • Texas Instruments BA II Plus/Plus Professional

Candidates are also permitted to bring certain other articles in their pocket or in a clear plastic bag, including:

• Wallet or money

• Extra calculator, calculator case

• Extra batteries

• Eyeglasses

• Earplugs

• Medicine

• Tissues

• Other essential medical items

FRM Result

The candidate will be notified of their exam result via email approximately six weeks after the date of the FRM exam. The exam result will contain only a ‘pass’ or ‘fail’ status along with their quartile ranking which compares the specific candidate’s score to that of his or her peers’. The FRM result comprises no numerical score for review.

FRM Part I Historical Pass Rate (2016-2023) - UPDATED

FRM Part II Historical Pass Rate (2016-2023) - UPDATED

FRM Certification Maintenance

The FRM certificate is initially valid for a period of 2 years. In order to maintain the value of the certification, candidates are advised to participate in continuing professional development (CPD). FRM certificate holders are required to earn and document at least 40 credits of CPD every two years in order to maintain their FRM certification status and certificate value.

FRM Salary

The compensation for FRM certificate holders in India is comparable to the salaries offered to other top finance certificate and charter holders like CFA, CA and CMA. The FRM salary is generally in the range of 6 to 24 lacs per annum. Job roles that offer the top FRM salary include positions like risk manager, business analyst and associate VP market risk, amongst others.

Advantages of the FRM Designation

Here are some of the advantages of FRM designation:

• Having an FRM designation opens doors of candidates to a wide range of career options in the field of finance.

• FRM certification has a wide recognition across the globe and industries.

• Candidates having a FRM designation do have a competitive advantage in the finance industry.

• An FRM certification opens candidates to global networking opportunities.