Quick Guide to FRM Program

The Financial Risk Manager designation is the globally recognized standard for those who deal with risk. FRM designation has a good demand in financial services industry.

[box type=”info”]

Quick Facts

  • There are over 26,000 Certified FRMs practicing worldwide
  • Over 150,000 registrations for the FRM Exam since 1997
  • In 2012, FRM candidates came from 136 different countries and territories


FRM Program Roadmap

There are no educational or professional perquisites to sit in FRM exam. To successfully complete the program following steps are required:

 FRM Roadmap

In order to be a Certified Financial Risk Manager, candidates must demonstrate two years of related work experience.

FRM Exam Levels

FRM exam is divided in two levels:

Level I

FRM Levle I

The FRM Part I curriculum covers the tools used to assess financial risk: quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models.

Level II

FRM Level II

The FRM Exam Part II focuses on the application of the tools acquired in Part I through a deeper dive into market, credit, operational and integrated risk management, investment management as well as current market issues.

Exam Pattern

Both level exams are taken in paper pencil multiple choice pattern. No negative marking, completing part I is compulsory to sit for part II.

Each part of the FRM Exam is four hours long. Part I consists of 100 multiple choice questions and Part II contains 80 multiple choice questions.

Career options after FRM

FRM candidates are majorly employed in following industries

  • Investment banks
  • Commercial banks
  • Asset management firms
  • Consulting firms
  • Hedge funds
  • Insurance firms
  • Credit agencies
  • Risk and technology vendors

The top 10 companies employing the most Certified FRMs worldwide are

  1. ICBC
  2. HSBC
  3. Bank of China
  4. PwC
  5. UBS
  6. Citi
  7. KPMG
  8. Agricultural Bank of China
  9. EY
  10. Deutsche Bank

Fees and Registration options

First time applicants pay US $300 in addition to the exam registration fees.

Exam fees for each level depends on how early you apply and ranges between $350 to $650

Visit this page for latest exam fees schedule

Exams are taken in many countries and cities (visit this page to find the nearest exam site)

Pass registration growth and passing rates in FRM

FRM Stats

All Images credit: GARP

Who should go for FRM Designation?

FRM is a very good add on certification for people with a base professional qualification like CA, CFA, ACCA etc. and are working in financial services sector. A must do certification for all Risk Managers, Traders and Treasury Managers.

FRM is a globally accepted program and is favored a lot by all multinational banks and financial services companies.

How difficult is FRM?

FRM gets relatively difficult for candidates with not quant background as it has a lot of quantitative and financial management concepts. so all you need is a good coach for that part, rest is easy. Visit http://search.pace2race.com to find a good coach for your FRM exams.

Visit this page to Register for FRM Exam

Share this post to download FRM Exam 2014 guide by GARP and sample questions for level I

[sociallocker id=”1679″]

Thanks for sharing this post, use the links below to download.


Add Comment