Recognized in every major market, the FRM is the leading certification for risk managers.The assessment Examination is conducted once a year every November and is held all over the world by GARP (Global Association of Risk Professionals) at the same time. It is consistently in demand by nearly every major bank and firm in the world, and is awarded only to professionals who demonstrate the knowledge and ability to anticipate, respond, and adapt to critical risk issues.
Anyone can register to take the exam. Candidates must take the FRM Exam Part I before taking Part II. Both Part I and Part II of the exam are normally offered in May and November. However, in 2021, Part I will be offered in May, July, and November, and Part II will be offered in May and December. The exam is mutiple choice questions and offered via computer-based testing (CBT). Passing Rates: FRM Part I is 45%, and FRM Part II is 59%.
Certified FRMs are strongly encouraged to earn 40 hours of Continuing Professional Development (CPD) every two years to maintain the latest best practices in risk management.
To earn your FRM certification, you need to:
- Take and pass the FRM exams (FRM Exam Part I and Part II).
- Work full-time in a financial risk role for 2 years. this full-time work experience can be accrued before or after you pass your Exams.
- Demonstrate your experience to GARP by describing your professional role in financial risk management and submitting it to GARP within 5 years of passing Part II.
|The topics in FRM® Exam|
|Part I||Part II|
|Topic||Weight (%)||Topic||Weight (%)|
|Foundations of Risk Management||20%||Market Risk||25%|
|Quantitative Analysis||20%||Credit Risk||25%|
|Financial Markets and Products||30%||Operational Risk||25%|
|Valuation and Risk Models||30%||Risk Managemnet & Investment Management||15%|
|–||–||Current Issues in Financial Markets||10%|
*The FRM® exam Part I will last for 4 hours and consists of about 100 multiple-choice questions.