description FRM Exam Overview
The Financial Risk Manager (FRM) exam is a globally recognized certification assessing knowledge of risk management principles across areas like credit, market, and operational risk, requiring successful completion of two rigorous exams covering extensive theoretical and practical concepts.
insights Ranking position
FRM Exam ranks #15 of 37 in the Testing ranking, behind LSAT, ahead of AP Exams.
balance FRM Exam Pros & Cons
- globally recognized credential
- comprehensive risk curriculum
- strong career advancement value
- high exam registration fees
- very low pass rates
- extensive preparation time required
help FRM Exam FAQ
How many exam parts are required to earn the FRM designation from GARP?
The FRM certification requires passing two separate exams administered by GARP (Global Association of Risk Professionals). Part I covers foundations of risk management, quantitative analysis, financial markets, and valuation models, while Part II focuses on market, credit, operational, and liquidity risk plus current issues.
When are the FRM Part I and Part II exams offered during the year?
GARP offers both FRM exam parts twice annually, typically in May and November at authorized testing centers worldwide. Registration opens months in advance with early, standard, and late pricing windows that increase in cost the closer you get to the exam date.
What are typical FRM exam pass rates?
Historical pass rates for the FRM exams have generally hovered in the 40–50% range for both Part I and Part II, reflecting the rigorous nature of the content. GARP uses a criterion-referenced scoring method rather than a fixed passing percentage, so the exact pass mark varies by exam administration.
How much work experience do I need after passing both FRM exams?
After passing Part I and Part II, candidates must demonstrate two years of full-time professional risk management work experience to receive the official FRM designation. This experience must be submitted to GARP for verification within five years of passing Part II.
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