If you are interested in becoming an FRM certified holder, this article explains the FRM course in its entirety, from eligibility criteria to job opportunities after the course.
What is FRM?
The full form of FRM is Financial Risk Manager. The FRM certification program is offered by the Global Association of Risk Professionals (GARP), USA. It is the leading risk management certification and is highly sought after by almost every major bank and firm in the world.
Eligibility Criteria
A candidate should meet the following requirements for FRM certification
- A candidate should pass the FRM exam Part 1.
- After that, the candidate has to pass the FRM Exam Part 2 by December 31 of the fourth year after passing the FRM Exam Part 1.
- They need to submit two years of full-time relevant work experience in financial risk management within five years of passing the FRM Exam Part 2.
FRM Exam Pattern
In the following sections, we will go over the exam pattern for both the FRM Exam Part 1 and Part 2.
- FRM Exam Part 1: The FRM exam part 1 consists of 100 multiple-choice questions offered by computer-based testing (CBT) in May, August, and November 2022. The duration of this exam is 4 hours.
- FRM Exam Part 2: FRM Exam Part II has a total of 80 multiple-choice questions administered via computer-based testing (CBT) in May and November 2022. The time limit for this exam is the same as part 1, i.e., 4 hours.
FRM Exam Syllabus
For a candidate, the syllabus is the most important thing for preparing for an exam. We are going to mention below the topics and the weightage of each topic for both the FRM Exam parts 1 and 2.
| Topic | Exam Weight |
| Foundations of Risk Management | 20% |
| Quantitative Analysis | 20% |
| Financial Markets and products | 30% |
| Valuation and Risk Models | 30% |
| Topic | Exam Weight |
| Market risk | 20% |
| Credit Risk | 20% |
| Operational Risk and Resiliency | 20% |
| Treasury and Liquidity Risk Management | 15% |
| Risk Management and Investment Management | 15% |
| Current Issues in Financial Markets. | 10% |
Note: Please visit the GARP official website for study materials and guidelines.
Exam Fees and Payments
The exam fee for the FRM exam depends on the exam and the time you choose. The following has details of the fee for the FRM exam parts 1 and 2.
FRM Exam Part 1 (NOV 5–18, 2022)
| Early | USD 1000 |
| STANDARD | USD 1200 (By September 30, 2022, you must be registered. ) Enrollment Fee USD 400 Exam Fee USD 800 |
| EARLY | USD 600 |
| STANDARD | USD 800 (Register by September 30, 2022) Exam Fee USD 800 |
FRM Exam Part 2 ( NOV 19-25, 2022 )
| EARLY | USD 600 |
| STANDARD | USD 800 (Register By September 30, 2022) Exam Fee USD 800 |
The candidates can pay their registration fee via the following methods
- Credit card: MasterCard, Visa, or Amex.
- Check: It must be a US bank check or a foreign check with a US intermediate bank wire.
- And, lastly, wire transfer.
FRM Registration Process
Below, we are discussing step-by-step instructions for FRM registration.
- First, go to the GARP website FRM exam registration section.
- Then you have to select the type of exam. You can choose either the FRM Exam Part 1 or both the FRM Exam Part 1 and Part 2.
- Select your exam location.
- Provide your correct email ID and name.
- Ebooks will be provided to you as a part of the exam registration. However, you can purchase printed copies of the ebooks if you want.
- The next section is billing addresses, providing your home or company address.
- Finally, pay your exam fee, and you will register for the FRM exam in 2022.
FRM Exam Policies
The FRM Exam has some important policies for students to take the exam. Below are some crucial points that every student must be aware of.
- The candidate who does not attend the exam after completing the registration process will forfeit the registration fee.
- If a candidate wants to sit for the exam, he or she must repeat the entire registration process again.
- Candidates get a time of 48 hours after the exam registration for a refund request.
- A candidate can change their exam registration only once for each FRM Exam Part 1 and Part 2. To defer, there is a USD 200 fee.
- To gain admission to the exam room on the exam day, a candidate must bring a valid passport or driver’s license.
- And also bring the printed copy of the confirmation of the appointed email.
- Only the following types of business calculators are allowed in the GARP exam.
- Hewlett Packard 12C
- Texas Instruments BA II Plus
- Hewlett Packard 10B II
- Hewlett Packard 10BII+
- Hewlett Packard 20B
- No personal belongings of the candidates are allowed in the exam room.
- You will be provided Two sheets of scratch paper and a pencil at the start of the exam.
- If a candidate violates any exam policy, he or she may be dismissed from the exam room.
Upcoming FRM Exam Dates
| Part I | November 5-18, 2022 |
| Part 2 | November 19-25, 2022 |
Job Opportunities
After completing the FRM course, a candidate may be eligible for some of the following job roles.
- Financial Risk Analyst/ Manager
- Investment Bankers
- Enterprise Risk Management
- Operational Risk Management
- Market Risk Management
- Credit Risk Management, etc.
FRM-certified candidates are currently employed in more than 190 countries and territories worldwide. The top 10 companies that employ the most FRMs are
- ICBC
- Bank of China
- HSBC
- Agricultural Bank of China
- Citigroup
- KPMG
- Deutsche Bank
- Credit Suisse
- UBS
- PWC
Top 10 Global Banks Utilizing FRMS are
- ICBC
- China Construction Bank
- Agricultural Bank of China
- Bank of China
- JP Morgan Chase
- Wells Fargo
- HSBC
- Citigroup
- Bank of America
- Banco Santander