Frequently Asked Questions on the FRM® Certification

You may have just enrolled for the FRM course, or maybe you are considering registering for the course to advance your career, and you probably have a lot of questions about FRM certification.

Let us answer the most frequent questions you might have.

What does the FRM^® mean?

FRM stands for financial risk manager and is a professional course offered by the Global Association of Risk Professionals (GARP). Employers recognize FRM certification as the top certification for risk managers.

Employers identify professionals with FRM certification to possess the skills to anticipate and respond to serious risk issues in the company. Having an FRM designation sets you apart as an employee with international professional standards.

What are the entry requirements for enrolling in the FRM^® program?

You do not need any education or professional prerequisites to qualify for registration of the program.

How much does One Earn the FRM^® Certification

You should 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.

GARP defines relevant work experience as to 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 is the FRM Exam Format?

FRM curriculum consists of two parts. The exams use computer-based testing, and all questions are multiple-choice. FRM part I has 100 equally weighted questions, while part II has 80 questions.

The allocated test time is four hours for both parts. Although you can sit for both parts on the same day, you should pass part I before GARP scores part II. Most candidates, however, prefer to take the exams on different exam sittings.

The exam is in English only.

What are the Topics Covered in the FRM Curriculum?

Part I of the FRM curriculum tests the tools used to evaluate financial risk. The topics are;

• Quantitative analysis
• Foundations of risk management concepts
• Financial markets and products
• Valuation and risk models

Part II of the FRM curriculum focuses on applying the risk evaluation tools learned in part I. They are;

• Market risk measurement and management
• Credit risk measurement and management
• Operational and integrated risk  management
• Liquidity and treasury risk measurement and management
• Ris98k management and investment management
• Current issues in financial markets

What are the FRM Exams Pass rates?

In the last FRM exam sitting of 2019, the pass rate was:

• Level I: May sitting -42% and November sitting -46%
• Level II: May sitting -61% and November sitting -59%

Is the FRM Exam Hard to Pass?

The FRM exam is highly quantitative, and its level of mathematical difficulty is the same as an advanced undergraduate or introductory graduate-level finance course. Although it is highly conceptual, candidates should know fundamental formulas, calculations and have the skill to apply them correctly.

You will need to study for a significant number of hours to master the concepts. You need to put in at least 240 hours in each part and practice using sample questions.

You can use an exam prep package from Analystprep.com to gain access to additional study and exam materials to help you prepare for your exam.

When are the Exam Windows for the FRM Exams?

FRM part I:

• May 8-21, 2021
• July 10-23, 2021
• November 13-26, 2021

FRM part II:

• December 4-10, 2021 

How much does it cost to register for FRM?

The registration fee is in USD. An enrollment fee of USD 400 is paid once on your initial registration. The early exam registration fee is USD 550, and the standard exam registration fee is US 750 for both FRM exam parts. The deferral fee is USD 200. The registration fees do not include any study materials.

What do I do after Completing Exam Registration?

The next step after enrollment and registration is to start studying for your exam. You should set up a study plan to keep you on track and practice for the exam using sample questions.

Contact us at Analystprep.com for our FRM study packages to help you prepare for your exams. You will have access to notes and video tutorials from the best professors and an up-to-date sample question bank to help you pass your exams on the first try.