FRM Certification - The Financial Risk Manager or the FRM certification is one of the world’s leading certifications in risk management and is recognized in every major market. The FRM exam is conducted in a computer-based testing format. FRM Part I and Part II must be cleared in chronological order after which candidates must document the requisite work experience in financial risk management in order to be granted Financial Risk Manager status. As of now around 76,000 professionals from over 190 countries and territories have attained FRM certification. Among those who are interested in FRM certification are professionals working in global and regional banks, consulting firms, asset managers, regulators, and companies operating in the real economy.
The FRM certificate is provided by GARP or Global Association of Risk Professionals and is offered at over a 100 test cities across the world. The FRM certification is also considered one of the best finance certifications in terms of return-of-investment (ROI) and is known to lead to a considerable FRM salary and sought-after job positions. The FRM exams are two-fold with Part I and Part II exams which need to be successfully cleared in order for a candidate to be eligible for FRM certification.
Item
Details | |
Name | Financial Risk Manager |
Abbreviation | FRM |
Governing body | Global Association of Risk Professionals (GARP) |
Exam type | International certification |
Test centre administration | GARP |
Number of exams | 2 (Part I, Part II) |
Exam duration | 4 hours (each) |
Number of questions | Part I - 100 questions Part II - 80 questions |
Question type | Multiple-choice (MCQs) |
Certification validity | 2 years |
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.
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 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.
Key Deadlines | August 2023 (Part 1 & 2) | Nov 2023 (Part 1 & 2) | May 2024 (Part 1 & 2) |
Registration opens | March 1, 2023 | May 1, 2023 | December 1, 2023 |
Scheduling opens | March 1, 2023 | May 1, 2023 | December 1, 2023 |
Early registration ends | April 30, 2023 | July 31, 2023 | January 31, 2024 |
Standard registration start | May 1, 2023 | Aug 1, 2023 | February 1, 2024 |
Standard registration ends | June 30, 2023 | September 30, 2023 | March 31, 2024 |
Last day to schedule/reschedule exam, or select/change exam sites | July 21, 2023 | Oct 20, 2023 | April 26, 2024 |
FRM 2023 exam windows | Part 1 & 2 - August 5, 2023 | Part 1 - Nov 4-17, 2023 Part 2 - November 18-24, 2023 | Part 1: May 11 to 17, 2024 Part 2: May 18 to 22, 2024 |
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)
Registration type | Enrollment Fee | Early | Standard |
FRM Level 1 Fees | USD $400 | USD $600 | USD $800 |
FRM Level 2 Fees | NA | USD $600 | USD $800 |
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
Type of member | Annual membership fee |
Individual member | USD $195 |
Certified FRM/ERP | USD $150 |
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.
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
Area of Study | Topics | Weightage |
Foundations of Risk Management (FRM) |
| 20% |
Quantitative Analysis (QA) |
| 20% |
Financial Markets and Products (FMP) |
| 30% |
Valuation and Risk Models (VRM) |
| 30% |
FRM Syllabus - FRM Exam Part II
Area of Study | Topics | Weightage |
Market Risk Measurement and Management (MR) |
| 25% |
Credit Risk Measurement and Management (CR) |
| 25% |
Operational and Integrated Risk Management (OR) |
| 25% |
Risk Management and Investment Management (IM) |
| 15% |
Current Issues in Financial Markets (CI) |
| 10% |
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
Exam part | Number of questions | Type of questions | Duration |
Part I | 100 | Multiple-choice questions (MCQs) | 4 hours |
Part II | 80 |
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
Book set | Volumes included | Number of pages | Price |
FRM Books: FRM Part I |
| 1,143 | USD $300 |
FRM Ebooks: FRM Part I | USD $250 | ||
FRM Books: FRM Part II |
| 1,405 | USD $300 |
FRM Ebooks: FRM Part II | USD $250 |
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.
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
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
Year | May | November |
2016 | 45 % | 45 % |
2017 | 42 % | 42 % |
2018 | 41 % | 50 % |
2019 | 42 % | 46 % |
2020 | 44 % (October) | 45 % |
2021 | 47% | 45% |
2022 | 51% | 51% (August) |
2023 | 47% | - |
FRM Part II Historical Pass Rate (2016-2023) - UPDATED
Year | May | November |
2016 | 50 % | 54 % |
2017 | 54 % | 52 % |
2018 | 53 % | 56 % |
2019 | 60 % | 59 % |
2020 | 62 % (October) | 59 % |
2021 | 59% | 63% |
2022 | 57% | 57% (August) |
2023 | 51% | - |
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.
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.
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.
FRM fee for new candidates is $1000 for early registration and $1200 for standard registration.
Passing a FRM certification is comparatively tougher than obtaining a MBA degree.
FRM is comparatively more difficulty than CFA.
Budget analysis, in a nutshell, entails thoroughly analyzing the details of a financial budget. The budget analysis aims to better understand and manage revenue. Budget analysts assist in the achievement of financial targets, the preservation of profitability, and the pursuit of long-term growth for a business. Budget analysts generally have a bachelor's degree in accounting, finance, economics, or a closely related field. Knowledge of Financial Management is of prime importance in this career.
The invention of the database has given fresh breath to the people involved in the data analytics career path. Analysis refers to splitting up a whole into its individual components for individual analysis. Data analysis is a method through which raw data are processed and transformed into information that would be beneficial for user strategic thinking.
Data are collected and examined to respond to questions, evaluate hypotheses or contradict theories. It is a tool for analyzing, transforming, modeling, and arranging data with useful knowledge, to assist in decision-making and methods, encompassing various strategies, and is used in different fields of business, research, and social science.
An underwriter evaluates insurance, loan, or investment applications to assess risk and decide on approval terms. They analyse data, set premiums or terms, and ensure policies align with regulations. Key skills include analytical thinking, attention to detail, and communication. Underwriters help financial institutions manage risk and maintain profitability by making informed decisions on which risks to accept.
An Operations Manager ensures smooth business operations by overseeing departments like HR, finance, and supply chain. They implement processes, manage teams, maintain quality, ensure compliance, and plan strategically. Strong leadership, communication, and business knowledge are essential. Typically, they hold a degree in business or an MBA, playing a vital role in improving organisational efficiency and performance.
A Finance Executive manages a company’s financial operations, including monitoring income, expenses, and preparing financial reports. They develop strategies to improve profits and reduce costs, ensuring financial stability. The role demands strong accounting and analytical skills, attention to detail, and the ability to meet deadlines, making it ideal for proactive individuals with a solid finance background.
A Product Manager drives a product’s success by planning strategy, analysing markets, and collaborating across teams. They focus on user needs, guide development, and monitor performance. With tech advancements like generative AI, PMs now enhance innovation and decision-making. Adaptability and continuous learning are key in this evolving, high-impact career.
An Account Manager plays a key role in bridging the gap between a company and its clients, ensuring smooth communication and fostering long-term partnerships. They are responsible for managing and nurturing client relationships, understanding their needs, and crafting tailored strategies to achieve mutual goals. Account Managers also gather and analyse client feedback to drive service improvements, while promptly addressing and resolving any issues that arise.
A Bank Probationary Officer (PO) is an entry-level managerial role in the banking sector, involving responsibilities like handling customer queries, managing loans, overseeing cash flow, and supervising clerical staff. The role requires formal attire and offers opportunities for promotion to higher positions. After probation, the officer may specialise in areas like credit or risk management.
Welding Engineer Job Description: A Welding Engineer work involves managing welding projects and supervising welding teams. He or she is responsible for reviewing welding procedures, processes and documentation. A career as Welding Engineer involves conducting failure analyses and causes on welding issues.
A Quality Assurance (QA) Manager, synonymous with a Quality Assurance Manager, holds a pivotal role in ensuring products meet predefined standards. Responsible for planning, directing, and formulating control policies, the QA Manager safeguards company efficiency and profitability. By scrutinizing products for flaws and ensuring compliance with internal and external requirements, they uphold quality, validating the effectiveness of quality assurance teams in maintaining high standards before product release.
A Quality Controller monitors and tests products to ensure they meet quality standards in industries like manufacturing and pharmaceuticals. They inspect materials, conduct tests, document defects, and suggest improvements. Key skills include technical knowledge, attention to detail, and analytical ability. Typically requiring an engineering degree, they can advance from junior to senior roles overseeing quality processes and teams.
A Production Manager oversees manufacturing processes, ensuring timely and budgeted delivery of products. Responsible for safe, cost-effective production meeting quality standards, their role adapts to the production system. Also known as an Operations Manager, they manage human and material resources, contributing to efficient production and service delivery.
A Product Manager drives a product’s success by planning strategy, analysing markets, and collaborating across teams. They focus on user needs, guide development, and monitor performance. With tech advancements like generative AI, PMs now enhance innovation and decision-making. Adaptability and continuous learning are key in this evolving, high-impact career.
Individuals who opt for a career as product designers are responsible for designing the components and overall product concerning its shape, size, and material used in manufacturing. They are responsible for the aesthetic appearance of the product. A product designer uses his or her creative skills to give a product its final outlook and ensures the functionality of the design.
Students can opt for various product design degrees such as B.Des and M.Des to become product designers. Industrial product designer prepares 3D models of designs for approval and discusses them with clients and other colleagues. Individuals who opt for a career as a product designer estimate the total cost involved in designing.
An individual in textile engineering jobs is creative and innovative that involves the application of scientific laws and principles in everyday work responsibilities. Textile engineering jobs include designing fiber processing systems and related machinery involved in the manufacturing of fiber, cloth, apparel and other related products.
From design to manufacture, garment technologists oversee every stage of clothing production. Individuals are actively engaged in determining the perfect fabric and ensuring that production remains inside the budget. Garment Technologists operate very closely with the designing team, pattern cutters and consumers.