What is FRMĀ®?
- The Financial Risk Manager (FRMĀ®) designation is offered by the Global Association of Risk Professionals (GARP) and is the globally recognized standard for those who manage risk. Certified FRMs are part of an elite, global network, and are valued by top employers across diverse businesses.
- Requiring the successful completion of a rigorous two-part, practice-oriented examination, the Financial Risk Manager (FRM) designation provides a bedrock foundation in a profession and industry that is rapidly evolving. Since the FRM Programās inception in 1997, Certified FRMs have achieved positions such as Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director of Investment Risk Management, to name a few.
- The global FRM community is growing dramatically, with Certified FRMs represented at nearly every major banking institution, government regulator, consulting firm and financial services institution around the world.
About the GARP Institute:
- GARP is a not-for-profit organization and is the only globally recognized membership association for risk managers.
- Worldās largest association of risk professionals with over 150,000 members from 195 countries.
- GARP’s mission is to advance the risk profession through education, training, and the promotion of best practices globally.
Who is it for?
Anyone can take the FRMĀ® exam as there is no such eligibility requirement. The FRMĀ® Certification will be a milestone for someone who is:
| Working in finance and wants to climb up the success ladder | Willing to switch career to finance but doesnāt know where to start | A Student who has a plethora of options to choose from |
| Develop your expertise in Risk Management domain. FRM Charter holders are highly respected in the industry and most importantly paid well. So essentially we are saying all your risks are kind of hedged! |
We encounter many IT/Operations professionals pursuing careers in Risk Management. FRM certifications will help understand the client requirements better, help you move towards functional side and youād get to do some ārealā work. Again, additional perk is $$$! | FRM exams eligibility criterion doesnāt require completed Graduation. Which means you can start early and build an amazing CV and get ready for the Finance World. |
About the FRM Program:
- Globally recognized.
- No educational or professional qualifications needed to register. Which means anyone can take the exams irrespective of Education background. Even if you have just finished your school!
- (FinTree Tip: FRM program does require some intensive calculations and therefore unsaid eligibility is being āokayā with maths. You donāt need to be a geek, you donāt strictly need to know calculus, but you need to be reasonably āokayā with maths)
- Organized into two parts, each a four-hour exam.
- A candidate can use the FRM designation after completing the following steps-
- Pass the FRM Part I Exam
- Pass the FRM Part II Exam within 4 years of passing the Part I Exam
- Within 5 years of passing the Part II Exam, demonstrate 2 years of professional full-time financial risk work experience
For detailed information, visit GARP website
So what are the exams all about?
| FRMĀ® Part I | |
|---|---|
| What is it all about? | FRMĀ® Part I is focuses on tools to assess financial risk. |
| What is the exam pattern? | The exam consists of 100 MCQs and is a held in a four-hour session. |
| When? | Exams are held thrice a year, in May, August and November. |
| FinTree Tip |
|---|
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Concepts, Concepts and Concepts! Dig deeper and ask āwhy?ā every ten minutes to the instructor. |
| FRMĀ® Part I Exam at a glance | |
|---|---|
| Topic | Exam weight |
| Foundations of risk management concepts | Ā 20% |
| Quantitative analysis | Ā 20% |
| Financial markets and products | Ā 30% |
| Valuation and risk models | Ā 30% |
| FRMĀ® Part II | |
|---|---|
| What is it all about? | FRMĀ® Part II is focused on the application of the tools acquired in the FRM Exam Part I. |
| What is the exam pattern? | The exam consists of 80 MCQs and is also a four-hour session. |
| When? | Exams are held twice a year, in May and in November. |
| FinTree Tip |
|---|
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FRM Part II has some theory areas, to begin with, then some more theory and then some theory again. Start early and revise repeatedly. |
| FRMĀ® Part II Exam at a glance | |
|---|---|
| Topic | Exam weight |
| Market risk measurement and management | Ā 20% |
| Credit risk measurement and management | Ā 20% |
| Operational and integrated risk management | Ā 20% |
| Risk management and investment management | Ā 15% |
| Current issues in financial markets | Ā 10% |
| Liquidity and Treasury Risk | Ā 15% |