FRM

  • FRM® (Financial Risk Manager) Training

Financial Risk Manager (FRM®) is a professional designation awarded by the Global Association of Risk Professionals (GARP) to the candidates who successfully complete this certification program. It is a globally recognized standard for those who manage risk

FRM® Certification Requirements

 
There are no educational or professional requirements to appear for the FRM Exam. In order to become a Certified Financial Risk Manager after passing the FRM Exam Part I & II, candidates must demonstrate a minimum of two years of risk-related full-time professional experience positions including portfolio management, risk consulting and other fields.
 

Industries Employing Certified FRM’s

Candidates for the FRM designated work in any number of industries, including:

  • Banks
  • Investment Banks
  • Asset Management Firms
  • Corporations (Including non-financial corporations)
  • Consulting firms
  • Hedge Funds
  • Insurance Firms
  • Credit Agencies
  • Government/ regulatory agencies
  • Risk and technology vendors

FRM Exam Overview and Registration Guide

To become a Certified FRM, candidates must pass the very difficult FRM exam. Candidates also have to complete two years of work experience.

  • The FRM Exam tests collective knowledge, and everything being tested on Part I of the exam is necessary for Part II
  • After successfully passing Part I of the Exam, GARP allows 4 years of candidates to pass Part 2 of the exam.
  • In order to become certified , GARP allows five years for candidates to complete their work experience requirement after they have passed both parts of Exams.

Exam Dates

Both parts of the FRM Exam are offered two times per year on the third Saturday of MAY and November.

  • Part I of the Exam, which is offered in the morning, consists of 100 equally weighted multiple-choice questions. Part II of the exam consists of 80 equally weighed multiple-choice questions, and is offered in the afternoon.
  • GARP allows four hours for candidates to complete Part I of the Exam and four hours to complete Part II of the exam.
  • FRM Exam candidates must pass Part I  before they can take Part II. GARP does allow candidates to sit for both Part I and Part II of the FRM Exam on the same day, however, they must pass part I before their Part II exam will be graded.
  • Most FRM Exam candidates choose to take Part I and Part II on separate exam days.

FRM Exam Overview and Registration Guide

frm-exam-v3

To become a Certified FRM, Candidates must pass the very difficult FRM exam. Candidates also have to complete two years of work experience.

  • The FRM Exam tests collective knowledge, and everything being tested on Part I of the exam in necessary for Part II.
  •  After successfully passing Part I of the Exam, GARP allows 4 years for candidates to pass Part 2 of the exam.
  • In order to become certified, GARP allows five year for candidates to complete their work experience requirement after they have passed both parts of the exam.
GARP updates the FRM curriculum each year in order to reflect the most up-to-date trends in the financial markets.
 
The annual updates is not well understood by all candidates. For example, the FRM Exam updates more aggressively than the FRM. This has an important implications: the Exam is less predictable; formula and rote memorization is less reliable (because old questions are less likely to repeat); and the assigned syllabus (including the Learning Objectives) does not necessarily contain exact and literal pointers to exam questions.

 

The Two Parts of the FRM Exam

Both parts of the FRM Exam are offered two times per year on the third Saturday of May and November.

  • Part I of the Exam, which is offered in the morning, consists of 100 equally weighted multiple-choice questions. Part II of the Exam consists of 80 equally weighted multiple-choice questions, and is offered in the afternoon≥
  • GARP allows four hours for candidates to complete part I of the Exam and four hours to complete Part II of the exam.
  • FRM Exam candidates must pass part I before they can take Part II. GARP does allow candidates to sit for both Part I and Part II of the FRM Exam on the same day, however, they must pass Part I before their Part II exam will be graded.
  • Most FRM Exam candidates choose to take part I and Part II on separate exam days

Part I- Tools Used to Assess Financial Risk

  • Quantitative Analysis
  • Fundamental Risk Management Concepts
  • Financial Markets and Products
  • Valuation and Risk Models

Part 2- Application of the Tools

  • Market Risk Management
  • Credit Risk Management
  • Operational and Integrated Risk Management; Including the Basel
  • Investment Risk Management

Which is More Valuable, FRM, or FRM?

This is an excellent question- both credentials hold great value for those professionals for whom they’re suited. In general, the FRM charter is more generalist in its focus and targeted toward a broad range of financial professionals. As mentioned, the FRM designation is highly specialized and there are far fewer FRM’s in the world, which in itself brings a lot of value to the credential. The costs of completing the FRM Program are lower to complete both parts of the FRM Exam on the first try.

Who Should Take the FRM Exam?

The FRM examination is difficult and most candidates are working full time whilst studying. According to GARP, the May 2018 pass rate for Part I was just 41% while part II saw roughly 53% pass. The FRM designation is highly specialized and makes the most sense for risk professionals or those with a deep interest in assessing managing risk on behalf of accounting firms, banks, insurance companies, consulting firms, asset management companies, and regulatory agencies. 

What Finominal Education offer

This FRM Part 1 training course is a prep course with 170+ hours of classroom training. FRM Level 1 prep course is best suited for students and professionals who want to- 

  • Pass FRM Level 1 covering every basic concept
  • Complement current FRM Classroom coaching with better video-based understanding of the curriculum
  • 8 Mock Test and 4 Complete Mock Exams
  • Topic Wise study material is provided in the form of presentations
  • Personal attention to every student 
Let’s jump into the details of the Finominal Education Course Offerings.

 

S. No.                                  Sections                                                            Live Classes (In Hours)

1.                                         Quantitative analysis                                                       40

2.                                         Fundamental Risk Management                                   30

3.                                         Financial Markets and Products                                   50

4.                                         Valuation and Risk Models                                            50

5.                                         Video Recording                                                              90

                                                       Total                                                 =                   250 Hrs

 

FRM does not endorse, promote, or warrant the accuracy or quality of the product or services offered by Finominal Education. FRM is trademarks owned by GARP