All You Need to Know about GARP: The FRM Certification Organization

The FRM certification is offered internationally by the Global Association of Risk Professionals (GARP). GARP is a non-profit organization and the leading globally recognized membership association for risk managers aiming to develop the risk profession. Its mission is to be the leading professional association for risk managers, dedicated to advancing the risk profession through education, research, and promoting best practices globally.

When was GARP founded?

The organization was founded in 1996 by two risk managers, Marc Lore and Lev Borodovsky, who set up the formal organization to benefit other risk professionals. Their weekly meetings at a New York pub with colleagues were their inspiration. The organization gained popularity quickly and, in six months, had 250 members from over 23 countries. GARP grew globally when regional directors established local chapters that offer financial risk programs to local members.

The Financial risk manager certification (FRM) was introduced a year later in 1997, and one could earn the certificate by passing the exam and paying the fee. This certification has become the gold standard of risk professionals, and risk management has become integrated into business operations.

According to their GARP LinkedIn page, they have over 150,000 members from 195 countries, with more than 50,000 having earned the FRM certification so far. A Board of Trustees currently runs the organization. Bradford Hu, the Chief Risk Officer at CitiGroup, is the current chairperson, together with twenty-eight chapter directors that represent twenty chapters from more than twelve countries globally. Global representation allows professionals to interact with and learn from each other.

What are the benefits of becoming a GARP member?

GARP helps its members grow in their careers by providing them with professional resources, services, and learning through networking and learning opportunities.

GARP members enjoy access to premium content such as industry surveys, whitepapers, and webcasts. They contribute to research within the industry and access information on risk intelligence. Members have access to the member directory and can easily find and contact other certified professionals from all over the globe.

Members are granted admittance to local, national, and global events in the industry. Additional perks of membership include discounts on GARP products, exclusive offers from GARP partners, and an invitation to their annual risk convention.

How do I become a GARP member?

You can become a GARP member through three membership subscriptions. Affiliate membership is free and ideal for students or individuals who work with risk professionals. The individual member has an annual fee of USD 195 and designed for practicing professionals who want to stay informed and grow their career. Certified FRMS membership is USD 150 annually. However, you do not need to be a member of GARP to attain and maintain their professional certification.

GARP and education programs

GARP aim is to help risk professionals make better-informed risk decisions by educating them at all their careers. It offers research and promotes best practices in the industry. GARP sets global gold standards in professional certification in financial risk management (FRM) and energy risk professionals (ERP).

The GARP benchmarking initiative (GBI) analyses the processes used in developing and implementing bank risk systems, critical in increasing globalization and market interconnections. The GARP risk institute provides unbiased leadership and research, uncovers industry trends and challenges. The institute offers this information through publishing articles and reports in the fields of financial and environmental risk.

How do I attain an FRM certification from GARP?

You can enroll and register for the FRM part I exam by visiting the GARP website. You do not need prior education or work experience to qualify for the program

To attain your FRM certification, you should enroll in the course and pass both part I and part II of the FRM exam. You should pass part II by the end of the fourth year after completing part I of the FRM exam. You should also submit evidence of two years of full-time work experience in financial risk management after completing part II.

You will pay a one-time enrollment fee of USD 400 on your initial registration. The early exam registration fee is USD 550, and the standard exam registration fee is US 750. The registration fees, however, do not include study materials. 

The exam windows for FRM part I beginning 2021 are in May, July, and November. Part II exam widows are in May and December. You may take exams for both on the same day, but you will only be graded for part II if you pass part I.

Relevant work experience is where you are in a role where you are involved in the identification, measurement, monitoring, or management of risk. Experience up to ten years before sitting for FRM exams is acceptable.

You should submit your work experience within five years after completion of the course. If you fail to submit it within the given timeframe, you will need to re-enroll in the program, pay all the fees and retake both FRM part exams.

What Are the Costs of FRM Certification?

Understanding the cost of earning the Financial Risk Manager (FRM®) certification is essential for proper planning. Here’s a breakdown of all relevant fees:

Fee Type	Amount (USD)	Notes
GARP Enrollment Fee	$400 (one-time)	Paid only once—before your first FRM exam.
FRM Part I Exam Fee	$600 to $950	Depends on when you register (early, standard, or late deadline).
FRM Part II Exam Fee	$600 to $950	Same fee structure as Part I.
GARP Annual Membership Fee	$195 (optional)	Recommended for those aiming for GARP networking, resources, and the charter.
Estimated Total	$1,800 to $2,500+	Varies depending on registration time, study materials, and retakes.

While the GARP membership is optional, it’s required if you wish to use the “FRM” designation after completing both parts of the exam and gaining work experience.

Timeline – From Registration to FRM Charterholder

How long does it take to become an FRM charterholder? The timeline depends on your exam preparation schedule, registration period, and professional experience. Here’s a step-by-step guide:

1. Register and Pay Enrollment Fee

• GARP requires a one-time enrollment fee of $400 during your first exam registration (FRM Part I).

2. Prepare for FRM Part I

• Most candidates spend 150 to 300 hours preparing.
• FRM exams are held in May, August, and November.
• You can complete Part I in as little as 3–6 months, depending on your pace.

3. Register for FRM Part II

• You can register for Part II only after passing Part I.
• Exams follow the same cycles: May, August, and November.
• Again, expect to invest 200–300 study hours.

4. Submit Professional Experience

• After passing both parts, submit proof of two years of relevant full-time work experience in risk management or related roles.
• Experience must be gained within five years of passing Part II.

5. Earn Your FRM Charter

• Once your experience is approved, GARP awards you the FRM designation, making you a certified risk management professional.

⚡ Realistically, most candidates complete both exams and the experience requirement in 1.5 to 3 years, though it’s possible to finish faster.

FRM Part I vs Part II – Key Differences

The FRM certification is divided into two exams—Part I and Part II—each testing distinct skills and knowledge areas. Here’s how they compare:

Aspect	FRM Part I	FRM Part II
Focus	Core tools and foundations of risk management	Application of risk concepts in real-world scenarios
Topics	– Quantitative Analysis – Financial Markets & Products – Valuation & Risk Models – Foundations of Risk Management	– Credit, Market, and Operational Risk – Risk Models – Liquidity and Investment Management – Current Issues
Number of Questions	100 multiple-choice questions	80 multiple-choice questions
Exam Duration	4 hours	4 hours
Difficulty Level	Concept-heavy, math-based	Application-heavy, analytical and judgment-based
When to Take	Must be taken before Part II	After passing Part I

Key Takeaway:

• Part I is more technical and formula-driven—ideal for candidates with strong quantitative skills.
• Part II emphasizes practical applications and judgment, often considered conceptually harder but less math-intensive.

Tip: Use AnalystPrep’s study packages to tackle each part strategically with topic-specific mock exams, formula sheets, and review notes.

What Are the Benefits of Earning the FRM Charter?

Earning the FRM designation from GARP positions you as a globally recognized risk management expert. Here’s what you gain:

Global Recognition

The FRM is accepted in over 190 countries and respected by leading financial institutions, regulatory bodies, and risk-focused employers worldwide.

Career Opportunities

FRM charterholders qualify for roles such as:

• Risk Analyst / Risk Manager
• Quantitative Analyst
• Credit Risk Specialist
• Regulatory Risk Consultant
• Chief Risk Officer (CRO)

It’s particularly valued in banks, hedge funds, asset management firms, consulting firms, and government agencies.

Higher Salary Potential

FRM holders report significantly higher salaries than non-certified peers. Depending on experience and location, salaries can range from $85,000 to over $180,000 annually.

Competitive Edge

With increased regulations and demand for risk transparency, firms are prioritizing professionals who understand financial risk inside out. The FRM helps you stand out in this evolving job market.

Access to GARP Network

You’ll join a community of over 80,000+ FRM charterholders and gain exclusive access to GARP events, publications, and continuing education.

The FRM designation is more than just a title—it’s a career accelerator for professionals who want to lead in risk management and financial analysis.

Start your journey to FRM certification from GARP with AnalystPrep.com

An FRM certification and GARP membership is an excellent way to build and advance your career in financial risk management. A GARP membership will give you access to resources that will help you in all stages of your career.

Start your journey to earn an FRM certification with AnalystPrep.com and improve your odds of passing your exams. We will help you study with our vast library of study materials and multimedia tutorials, and our up-to-date sample question bank will help you get enough practice before your exams.

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