FRM Course: Hone Your Risk Management & Finance Skills
Updated on 06 November, 2023
Akansha Semwal
Study Abroad Expert
)Synopsis
Insufficient risk management can have serious consequences for both businesses and people. Macro-level poor risk management can bring down an economy. To navigate such risks, FRM (Financial Risk Management) professionals can make a difference. Learn all about the FRM course to become the desired professional.
Table of Contents
The FRM course is offered by the Global Association of Risk Professionals (GARP, USA) to help professionals understand, analyze, and mitigate risks businesses may face. It is the gold standard with regard to academic excellence in risk management, and professionals who have completed this course can pursue a career in risk management.
The FRM certification has propelled 80,000+ professionals with transferable knowledge applicable across industry platforms, a boost in job performance & career prospects, and the opportunity to be employed at the top banks as well as asset management companies. This article highlights the essential FRM course details that you should know before appearing for the exam.
FRM Curriculum
Let's start by looking at what the FRM curriculum entails.
| Module | |
FRM Part I
Exam: 100 MCQs, 4 hours
Applicants can appear for the exam in May, August, and November every year
|
Risk Management Overview, ERM, and Governance |
| Pricing Models and Risk Transfer | |
| Financial Crises and Disasters, GARP Code of Conduct | |
| Probability and Statistics | |
| Hypothesis Testing and Regression | |
| Time Series, Forecasting, Simulation and Machine Learning | |
| Financial Institutions, Markets and Central Clearing | |
| Forwards, Futures and Foreign Exchanges | |
| Options Markets and Trading Strategies | |
| Interest Rates, Swaps and Fixed Income Securities | |
| Measuring Risk and Volatility | |
| Understanding Credit Ratings and Credit Risk | |
| Operational Risk, County Risk and Stress Rating | |
| Valuing Fixed Income Securities | |
| Modeling Option Values and Sensitivities | |
FRM Part 2
Exam: 80MCQs, 4 hours
Exams are offered in May, August, and November every year |
Analyzing Market Risk and Correlation Risk |
| Term Structure and Volatility Modeling and Trading Considerations | |
| Analyzing Credit Risk | |
| Modeling Structured and Portfolio Credit Risk | |
| Counterparty Risk Management | |
| Retail Credit Risk and Credit Risk Transfer | |
| Operational Risk Management, Governances, and Model Risk | |
| Capital Frameworks and Capital Planning | |
| Regulation and Resiliency | |
| Introduction to Liquidity Risk Management | |
| Stress Testing, Contingency Planning, Deposit Services and Non-deposit Liabilities | |
| Repos, Liquidity Transfer, Interest Rate Risk Management and Cross-Currency Concerns | |
| Portfolio Construction and Management | |
| Risk Budgeting/Performance Measurement Funds | |
| Current Issues in Financial Markets |
Things to Remember
- The candidate has approximately 2.4 minutes to answer each question.
- The questions are of varying difficulty, with some requiring simple calculations to find the answer and others requiring the elaborate application of learned concepts to real-life situations.
- The exam questions focus on a candidate's grasp of concepts and the average pass rate is around 41-50%.
Eligibility for FRM Clourse
- There are no minimum eligibility criteria to apply for the FRM course. However, a minimum of two years of relevant work experience is necessary to earn the FRM certification.
- An undergraduate in the final year of their degree is eligible to apply for the FRM Part I exam. However, one needs to clear Part I to appear for Part II. The applicant should also have two or more years of work experience.
- Parts 1 and 2 of the FRM program must be completed within four years of applying for the Part 1 exam.
How to Register for FRM
Registering for the FRM exam is simple. You can directly register via the website of GARP. Here are the important details that you need to know to fill out the registration form:
- Go to the GARP website registration portal.
- Select the Exam section.
- Choose the exam you are interested in appearing for (Part 1 or Part 2). If you desire to appear for both, then select accordingly.
- Select the examination dates as per your desirability.
- Select your country, and fill in other details.
- Fill in other mandatory fields and pay your examination fee.
- You will be registered for the exam.
Note: a) You will not receive FRM certification without qualifying Part 2 exam.
b) Ebooks for preparation will be available to you as a part of registration. However, if you wish to buy a hard copy, you can do that.
Which should you choose?
FRM Exam Fees
| FRM Exam Part I | |
| Type | Fees |
| Early | $1,000 |
| Standard | $1200 |
| FRM Exam Part II | |
| Type | Fees |
| Early | $600 |
| Standard | $800 |
Exam Dates & Deadlines
It is just as important to stay updated with the latest dates and deadlines as preparation for a specific course. The exam windows for FRM are given in the table below.
FRM Exam Part I |
FRM Exam Part II |
||||||
Fees |
Registration Dates |
Exam Dates |
Fees |
Registration Dates |
Exam Dates |
||
New Candidates |
Early |
Enrollment Fee: $400 Exam Fee: $600 |
Opens December 1, 2023 |
May 11–17, 2024 |
- |
- |
May 18–22, 2024 |
Standard |
Enrollment Fee: $400 Exam Fee: $800 |
Opens February 1, 2024 |
- |
- |
|||
Returning Candidates |
Early |
Exam Fee: $600 |
Opens December 1, 2023 |
Exam Fee $600 |
Opens December 1, 2023 |
||
Standard |
Exam Fee: $800 |
Opens February 1, 2024 |
Exam Fee $800 |
Opens February 1, 2024 |
|||
Job Prospects After FRM Course
The FRM course allows a professional to utilize risk management tools and techniques in the investment management processes. As a result, a professional certified in FRM has ample career options in risk management and trading, with outstanding job roles within the field.
| Job | Average Expected Salary Range |
| Associate Vice President | $100,000 – 200,000 |
| Risk Analyst | $64,000 – 100,000 |
| Risk Manager | $77,000 – 100,000 |
| Senior Business Analyst | $85,000 – 100,000 |
| Financial Analyst | $59,000 – 84,000 |
| Credit Risk Analyst | $70,000 – 100,000 |
| Senior Risk Manager | $92,000 – 100,000 |
| Data Analyst | $59,000 – 90,000 |
Source: Glassdoor
Some of the top hiring firms include:
- Bank of China
- ICBC
- HSBC
- JP Morgan Chase
- CitiGroup
- UBS
- Deutsche Bank
- KPMG
- Credit Suisse
- Wells Fargo
FAQs
What is the FRM course duration?
The Financial Risk Management course can be completed within one to two years.
What are the fees for the FRM exam?
The initial enrollment fee for the FRM exam is $400, with the exam fees for Part I ranging from $600 to $800, whether early or standard registration. Only exam fees of $600 or $800 (early or standard) must be paid for Part II.
What are the job prospects for individuals with an FRM certification?
Job prospects for FRM-certified professionals are generally very promising. They often find opportunities in roles related to risk management, investment, and financial analysis in top banks and companies like PwC, ICBC, HSBC, JP Morgan Chase, and CitiGroup.
What is the salary of FRM?
Per Glassdoor, the salary of an FRM-certified professional starts from $59,000 annually and can go up to $200,000 depending on the job role, experience and skills.
Did you find this article helpful?
Exams to Study Abroad
IELTS ExamGRE ExamGMAT ExamSAT ExamTOEFL ExamDuolingo ExamTop Study Abroad Destinations
USAGermanyUKCanadaAustraliaImportant Resources
LOR for Master'sSOP for Master'sCost of Living in CanadaHow to Write a Motivation LetterConvert GPA to PercentageDifference Between SDS and Non-SDS Visa ApplicationsTop Free Countries for Free Education Fully-Funded PhD. Programs In the USAPopular Study Abroad Courses after BCom Study in Canada after 12thRefer Your Friend & Earn upto ₹40000
Help your friend upgrade to a Global Career and earn rewards together.
Similar Articles
