About the FRM® Program
Financial Risk Manager (FRM®), set by Global Association of Risk Professionals (GARP), is a globally recognized certification and a benchmark qualification for professionals in the field of risk management.
FRM helps in attaining specialized, practical knowledge in the area of risk (financial, operational and enterprise).
The designation increases opportunities for professionals who manage risk, money or investments and distinguishes candidates as individuals who are able to master complex real world challenges.
Benefits of the Program
- Career Enhancement− Candidates can accelerate their careers, no matter their professional or academic background.
- Educational Enhancement− The FRM prepares candidates for a holistic understanding of risk management, necessary to succeed in the financial services industry.
- Networking– A lifelong platform to the world’s most prominent risk management professionals, expanding opportunities within the world of finance.
- Leadership Skills– Completing the rigorous requirements for the designation represents commitment to professional excellence, significant to the profession, positioning you as a leader in the risk management field.
- Global Recognition– With FRM candidates in over 100 countries, the designation’s acknowledgement, career and professional development has increased greatly over the years.
Course of Study
The FRM exam is a two part program:
Part 1 – Fundamental tools and techniques used in risk management and the theories that underlie their use. Specific areas of coverage and their weighting in the FRM Exam Part I are:
|PART 1 – Topic Areas||Exam Weight|
|Foundations of Risk Management||20%|
|Financial Markets and Products||30%|
|Valuation and Risk Models||30%|
Part 2 – Application of the tools and techniques covered in Part I; deeper study into major areas of risk management. Areas of coverage include:
|PART 2 – Topic Areas||Exam Weight|
|Market Risk Management||25%|
|Credit Risk Management||25%|
|Operational and Integrated Risk Management||25%|
|Risk Management & Investment Risk Management||15%|
|Current Issues in Financial Markets||10%|
Examination Process and Testing Methods
- To be eligible to sit for the exam you must be enrolled in the FRM Program.
- Log onto the GARP Website to register for the exam http://www.garp.org/
- Exams are offered on the 3rd Saturday in May and in November.
- The exams are in English and will be paper and pencil based. Results (pass or fail) are released via email six weeks after the exam.
|Fees||FRM Part 1||FRM Part 2|
|Early Exam Fee (1-Dec to 31-Jan)||$350||$350|
|Standard Exam Fee (1-Feb to 28-Feb)||$475||$475|
|Late Exam Fee (1-Mar to 15-Apr)||$650||$650|
|Enrollment Fee (Payable once only)||$400|
*Please refer to GARP website http://www.garp.org/ for changes/updates in exam and enrollment fees.
|FRM ® Part 1 (4 hours)||100 Multiple Choice Questions|
|FRM ® Part 2 (4 hours)||80 Multiple Choice Questions/td>|
Are available 6 weeks post exam date.
Eligibility to Take FRM Exams
There are no educational or professional prerequisites to sit for either part of the FRM Exam.
Registering for the FRM Exam
To register you must meet the exam eligibility requirements.
Log onto www.garp.org to view registration deadlines, locate a test center, create an account, or login and register for the examinations.
Note: This procedure does not qualify as a registration until the applicant does not receive a GARP Program Registration Confirmation.
Steps to be Eligible for the FRM Certification
Step 1: Take and pass the two part FRM exam.
Step 2: Demonstrate two years of relevant work experience.
Step 3: Review and agree to GARP’s Code of Conduct.
Preparation for the FRM Exams
Each part of the FRM program requires 200 – 400 hours of study. However this number can vary depending on the candidates academic background and work experience.
This implies that the candidate must commence his/her preparation 3 to 4 months prior to the exam date.
Exam material undergoes some changes each academic year. Ensure you are studying the most current version of the material.
Successful completion of the FRM examinations (two exam parts) is one of the necessary steps towards gaining the FRM Certification and EDGE can help ease your way through this examination quotient.
EDGE education provides varied course structures for their FRM Part 1 and FRM Part 2 trainings. All sessions are instructor led, delivering material from the FRM curriculum.
Disclaimer: GARP does not endorse, promote, review or warrant the accuracy of the products or services offered by EDGE Education of GARP Exam related information, nor does it endorse any pass rates that may be claimed by the Exam Prep Provider. Further, GARP is not responsible for any fees or costs paid by the user to EDGE Education nor is GARP responsible for any fees or costs of any person or entity providing any services to EDGE Education. ERP®, FRM®, GARP® and Global Association of Risk Professionals™, ICBRR® and FBR™ are trademarks owned by the Global Association of Risk Professionals, Inc.