Everything About The FRM Exam

If you have chosen to get an FRM certification, we’re pretty sure about your ability to anticipate, respond, and adapt to critical risk issues are some of your superpowers. FRM certification that GARP (Global Association of Risk Professionals) at the moment is in high demand, and if you have set your mind to getting certified, here’s everything you need to know next. 

The good thing about earning a Financial Risk Management certification is you don't need prior education or work experience. However, after clearing exams, you need to demonstrate two years of full-time work experience in the field of risk. Speaking of the FRM exams, here’s all you should know about the two parts of the FRM exam. 

Exam Format 

The Financial Risk Management exam is divided into two parts, Part I & Part II. In order to receive a certification, you need to pass both parts of the exam. To give you a heads up, both the exams are quantitative and might appear straightforward but are tricky. It really depends on an individual’s FRM prep. 

Part I 

• The first part focuses more on the tools that are used to assess financial risk. 

• It includes 100 multiple-choice questions that have to be answered within four hours or less. 

Part II

• The second part focuses more on the application of the tools that were used to assess financial risk. 

• This section includes a total of 80 multiple-choice questions that have to be answered within four hours or less. 

There are 3 exam windows for Part 1 (May, August, and November), and 2 exam windows for Part 2 (May and November) annually.

FRM Exam Weightings 

Part I

Foundations of Risk Management (FRM) 20%

Quantitative Analysis (QA) 20%

​Financial Markets & Products (FMP) 30%

Valuation & Risk Models (VRM) 30%

Part II

Market Risk Measurement & Management (MR) 20%

Credit Risk Measurement & Management (CR) ​ 20%

Operation Risk & Resiliency (ORR) 20%

​Liquidity and Treasury Risk Measurement and Management (LTR) 15%

​Risk Management and Investment Management (IM) 15%

Current Issues in Financial Markets (CI) 10%

FRM Exam Requirements

To use your FRM designation, you must complete certain conditions - 

• Pass FRM Part 1,

• Pass FRM Part 2 within 4 years of passing Part 1, 

• Demonstrate 2 years of professional full-time financial risk management work experience.

Benefits of FRM Certification

With high demand, FRM has become the most recognized designation in the risk management sector. The role of these managers is highly appreciated in financial services. From working as Risk Analysts, Risk Managers, Operational Risk Managers, Chief Risk Managers, and more, they can now work in an array of sectors; from consulting, and insurance, to investment banking and more. Here are some of the benefits that come with your FRM Certification - 

• With the certificate now accepted worldwide, FRM expands your network globally. The credibility and knowledge of the market it comes with, lets you work internationally with MNCs and big companies. 

• It opens the benefit of getting higher pay. As we speak, risk managers today are earning around $100,000 a year. 

• Although the procedure is drawn out, it is worthwhile, leads to a fascinating job, and most importantly is sought after in the market right now. 

If you want a successful career path in the Finance & Accounting industry, and to become an expert in the risk management segment choosing the right institution should be your top priority. Miles Education offers the best FRM Program study package in an exclusive collaboration with Kaplan Schweser.