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The FRM designation is a professional certification offered by the Global Association of Risk Professionals (GARP). The designation is viewed as the globally recognized gold standard for risk professionals. Since its inception in 1997, the FRM designation has rapidly grown in popularity, with enrollment in the program increasing year after year, and exploding in the years following the global financial crisis of 2008.
The improper handling of potential market and credit risks in the early part of the 21st century led to a huge demand for qualified risk professionals who were able to define a firm's risks clearly and accurately. Professionals holding the FRM designation are often viewed as some of the most qualified in the industry, which led to the enrollment boom.
In order to obtain the FRM designation, candidates are required to meet two key requirements:
Successfully pass two separate FRM exams, and complete a minimum of two years of full-time work experience in the field of financial risk, or related areas.
The work experience can be related to fields like portfolio management, industry research, trading, faculty academic and risk consulting.
Since the FRM designation relates primarily to the field of finance, only finance-related vocations are considered as acceptable work experience.
A 100 question multiple choice exam, the FRM Part 1 Exam focuses on the tools used to assess financial risk: quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models. FRM Part I is always offered in the morning and must be completed in four hours or less. FRM Part 1 Videos and FRM Part 1 Online classes are also provided.
| Exam Time | 4 hours (8am to 12noon) |
| Number of Questions | 100 |
| Exam Format | Multiple Choice |
| Negative Marking | No |
| Exam Date(s): | May and November |
| Exam Results: | Usually provided within 60 days |
| Official Exam Website: | http://www.garp.org/frm/ |
| TOPIC AREA | PART I |
|---|---|
| Foundations of Risk Management |
20% |
| Quantitative Analysis |
20% |
| Financial Markets and Products |
30% |
| Valuation and Risk Models |
30% |
| FRM PART I | Fees |
|---|---|
| FRM Part 1 Online Classes for May 2023 (Gold) | 30000 |
| FRM Part 1 Online Classes for November 2023 (Gold) | 31000 |
| FRM Part 1 Online Classes for November 2023 (Platinum) | 35100 |
| FRM Part 1 Topic Level Module: Financial Markets & Products | 10000 |
| FRM Part 1 Topic Level Module: Quantitative Analysis | 10000 |
| FRM Part 1 Topic Level Module: Valuations & Risk Models | 10000 |
Scoring & Results
There are no penalties for wrong answers. Passing scores are determined by the FRM Committee. Exam results are pass/fail and are emailed approximately six weeks after the exam. Candidates will receive quartile results comparing their performance to other candidates.
Please note that if a candidate elects to take Part II on the same day as Part I, their Part II Exam will not be marked by GARP unless they first pass Part I.
