The Financial Risk Manager (FRM®)

The Financial Risk Manager (FRM®) is the certification recognized among financial risk professionals worldwide, with 24,139 FRMs in 90 countries across the globe.

Financial risk management is one of the hottest skill sets to have in the financial services industry today that offers excellent visibility and outstanding earnings potential. The profession has seen considerable growth over the past 15 years fueled by the complexity of financial products, increased regulation and recent notable failures.

Like other careers in finance, having an advanced degree and certification helps to increase your career potential in financial risk management. Our FRM holders have positions such as Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director, Investment Risk Management, to name a few. If you are in financial risk management, or considering a career in it, then earning your FRM is the next natural step.

The FRM program is rigorous. A certified FRM holder has endured a comprehensive examination and has met the two year work experience requirement. Last year's exam was administered in 84 sites. (Click here to see sites)

The exam covers all the key areas of risk and the questions are presented in the context of real-world situations that a candidate might face.

FRM® Examination

New Exam Format Details

GARP revised its FRM certification program. From 2010 onwards, the FRM® Exam will be split into two parts – FRM® Exam Part I and Part II. Both Part I and Part II of the FRM Exam will be offered in May and November every year. Part I will be offered in the morning and Part II in the afternoon.

Please Note that you can register for FRM Part I & FRM Part II exam on the same day but in case you do not pass FRM Part I, GARP will not evaluate Part II and you will have to take both parts again.

The FRM Exam Part I

• 100 multiple-choice questions
• 4-hours in length, will be administered in the morning
• Approximately 200 hours of recommended study by GARP
• The FRM Exam Part I will cover the following topics:
  • Financial Markets and Products (30%)
  • Foundations of Risk Management (20%)
  • Quantitative Analysis (20%)
  • Valuation and Risk Models (30%)

The FRM Exam Part II

• 80 multiple-choice questions
• 4-hours in length, will be administered in the afternoon
• Approximately 200 hours of recommended study by GARP
• The FRM Exam Part II will cover the following topics:
  • Market Risk Measurement and Management (25%)
  • Credit Risk Measurement and Management (25%)
  • Operational and Integrated Risk Management (25%)
  • Risk Management and Investment Management (15%)
  • Current Issues in Financial Markets (10%)

More information about FRM please visit www.garp.com