The Financial Risk Manager (FRM) Exam is an internationally respected certification that holds great appeal for finance and risk management professionals. Whether you're an experienced risk manager aiming to boost your credentials or a recent graduate aspiring to enter the finance industry, the FRM designation can prove to be a valuable asset.
However, as with any substantial endeavor, it raises inquiries and uncertainties. In this blog post, we will tackle the most frequently asked questions about the FRM Exam to assist you in obtaining a clearer grasp of this demanding certification process.
10 FAQs about the FRM Exam
1. What is the FRM Exam?
The Financial Risk Manager (FRM) exam is a professional certification offered by the Global Association of Risk Professionals (GARP). It is a two-part exam that covers a broad range of financial risk topics, including market risk, credit risk, operational risk, and liquidity risk.
2. What are the benefits of becoming an FRM?
FRMs are in high demand in the financial industry. The FRM certification demonstrates that you have the knowledge and skills necessary to manage financial risk effectively. FRMs also earn higher salaries than their non-certified peers.
3. What are the conditions for the FRM Exam?
There are no formal educational or professional prerequisites for the FRM Exam. However, GARP recommends that candidates have at least two years of work experience in a risk-related field.
4. What is the format of the FRM exam?
Both parts of the FRM Exam are computer-based and multiple-choice. Part I has 100 questions and Part II has 80 questions. Both parts are four hours long.
5. What is the syllabus for the FRM exam?
Part I of the FRM Exam covers the following topics:
- Foundations of Risk Management
- Quantitative Analysis
- Financial Markets and Products
- Valuation and Risk Models
- Market Risk Measurement and Management
Part II of the FRM Exam covers the following topics:
- Credit Risk Measurement and Management
- Operational Risk Measurement and Management
- Liquidity and Treasury Risk Measurement and Management
- Risk Management and Investment Management
- Current Issues in Financial Markets
6. When will the FRM exam be held?
The Financial and Risk Management Exams are conducted in May, August, and November every year.
7. What is the FRM exam Fee?
The cost of the FRM Exam varies depending on when you register and whether you register for both parts at the same time. For more information on pricing, please visit the GARP website.
8. Where are the FRM Exam Centres in India?
Currently, the FRM Exam is conducted in 7 cities in India: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, and Pune.
9.. Can I take FRM Exam Parts 1 and 2 on the same day?
You have the option to take both Part I and Part II on the same day during the August session. Nevertheless, it is not permitted to take Part I and Part II on the same day in May or November. Nevertheless, during the same examination session, candidates are allowed to take both Part I and Part II.
10. How do I maintain my FRM certification?
To maintain your FRM certification, you must complete 20 hours of continuing professional education (CPE) every two years. GARP offers a variety of CPE courses and events.
The FRM Exam is your key to unlocking a world of financial opportunities. Here we have addressed the most important 10 FAQs, revealing the exam's format, benefits, and prerequisites. The FRM certification signifies expertise, elevating your career prospects and income potential. You can tackle both exam parts on the same day in August, but remember to keep your certification current with 20 hours of continuing professional education every two years. Join the FRM journey, and open the door to a dynamic and rewarding future in financial risk management.
We wish you the best of luck!
