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• Risk Management Expertise: Focuses on identifying, managing, and mitigating financial risks.
• Career Growth: Leads to roles in risk management, compliance, and financial analysis.
• Global Credibility: Highly respected in the banking, asset management, and insurance industries.

• Finance professionals focused on risk management.
• Individuals looking to specialize in managing financial risks in complex markets.

The FRM® certification is essential for those aiming to excel in risk management and financial regulation roles.

The FRM Exam Part I focuses on the tools used to assess financial risk: 

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

Per the Global Association of Risk Professionals (GARP®), candidates should understand that the level of mathematical difficulty of the FRM exam is similar to that found in advanced undergraduate or introductory graduate-level finance courses at most universities. Additionally, while the exam is designed to be conceptual, candidates will still be required to know important formulas and calculations, as well as how to apply them correctly. Please note that formula sheets are not provided with the exam.  

The FRM Exam Part II focuses on the tools used to assess financial risk: 

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

Per the Global Association of Risk Professionals (GARP®), candidates should understand that the level of mathematical difficulty of the FRM exam is similar to that found in advanced undergraduate or introductory graduate-level finance courses at most universities. Additionally, while the exam is designed to be conceptual, candidates will still be required to know important formulas and calculations, as well as how to apply them correctly. Please note that formula sheets are not provided with the exam

The FRM Exam Part II is a computer-based, multiple-choice exam. Part II contains 80 multiple-choice questions. The exam is offered solely in English—specifically American English—and is typically administered three times per year, in May, August, and November, at hundreds of exam sites around the world. Candidates should know the exam must be completed in four hours or less. This exam is administered via computer-based testing (CBT).

Enrollment Fee (One-time fee for first-time registrants):

• USD 400 (This is paid only once when you first register for Part 1 of the exam.)
• Exam Registration Fees for Part 1 (Depending on the registration period):
  
  • Early Registration: USD 600
  • Standard Registration: USD 800
  • Late Registration: USD 1,000

• There is no additional enrollment fee for Part 2 if you've already paid for Part 1.
• Exam Registration Fees for Part 2 (Depending on the registration period):
  • Early Registration: USD 600
  • Standard Registration: USD 800
  • Late Registration: USD 1,000

1. Register for the FRM Part I Exam
2. Pass the FRM Part I Exam
3. Register for the FRM Part II Exam
4. Pass the FRM Part II Exam
5. Demonstrate two years of relevant work experience

 Register for the FRM Exam: https://my.garp.org/Login

The FRM designation is valued by top employers and recognized globally as the highest standard of achievement in financial risk. As the FRM designation continues to grow, so do its benefits. According to Glassdoor, the average annual salary for financial risk managers in the United States is $101,404. Financial risk analysts earn approximately $56,000. On the top end of the scale are senior financial risk managers or executives, who earn an average of $151,000.

The FRM Exam Part I focuses on the tools used to assess financial risk and contains 100 equally weighted questions. Part II focuses on the application of the tools and contains 80 equally weight questions.

There are two parts to the exam. Both Part I and Part II FRM exam windows are in May, August, and November.  View the FRM exam dates to find specific information about each window.

There are two parts to the exam. Both Part I and Part II FRM exam windows are in May, August, and November.  View the FRM exam dates to find specific information about each window.

Part I of the FRM Exam is computer-based, with 100 multiple-choice questions. multiple-choice exams; each part is four hours in length. Part I has 100 multiple-choice questions. Part II is also computer-based. The Part II exam has 80 multiple-choice questions. Both Parts of the FRM exam are four hours in length.

For each part, you need to study a minimum of 200–240 hours, and you should start studying as soon as you’ve registered. You will be tested on your ability to read a question, analyze it, and apply concepts to it. So cramming in the final weeks before the exam won’t help you. The topics require a type of knowledge that can only be gained over a structured, careful course of study—not last-minute, frantic reviews of core materials.

The FRM Exam is very quantitative, and the curriculum takes a lot of time to master. As a result, more people fail Part I than pass it, and barely half of those who take Part II pass it. One reason for this is the variations in the FRM Exam questions.

Some are straightforward, others appear straightforward but have a trick to them, and the wording of still others can be confusing. Therefore, there will undoubtedly be questions on the FRM Exam that give you trouble.

May/August 2023 pass rates for Part I were 47% and 51% for Part II. You can greatly improve your odds of success by learning from other candidates’ experiences and avoiding common study mistakes.