Planning to pursue a master’s but worried about its high cost? But what if we say you can get an equivalent certification without spending money on an expensive Master’s degree? Yes, pursuing the FRM course allows candidates to secure a valuable certification and gain valuable skills which are recognised internationally. Plus, you can complete this course within a duration of 1 year, which creates a win-win situation. You get to save time and money, but before you make a decision, it’s important to gather key insights about this course. From the FRM full form to the fee structure and exam dates to syllabus, this guide includes everything you should know, so read on!
Table of Contents
FRM is an abbreviated form of Financial Risk Management and is a certification course recognised worldwide. This certificate is provided by the Global Association of Risk Professionals (GARP) USA. The FRM course aims to equip experts in financial risk management across financial institutions. The key proficiencies that a candidate gains through this certification course involve operational risks, market credit and investment risks. Plus, the FRM course is valued in fields such as consulting, regulatory firms, hedge funds, investment banking and asset management.
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The FRM course duration significantly varies based on the candidate’s schedule and pace. However, the common duration ranges between 1 and 2 years. Passing this exam requires students to pass two sections, which you can take within a duration of 1 year. Moreover, it is suggested that you should take the exam within a six-month gap. However, according to GARP, the FRM course duration is as follows:
Pursuing the FRM qualification can broaden the career prospects of individuals in the finance industry. Besides, it offers several benefits, including:
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Being one of the prominent and demanding courses worldwide, securing a strong score in the FRM course is crucial. However, for this, you first need to enhance your familiarity with the exam syllabus. It may look tough, but by enrolling in FRM classes, you can easily learn about these key principles. It is conducted in two levels, including subjects related to finance management. Here is the detailed description of the FRM course details. Read on!
The FRM course syllabus for Part I aims to enhance your knowledge about foundational finance management tools and principles, which are covered in the following subjects.
| Core Subjects | Overview | Weightage |
| Quantitative Analysis | It includes concepts of regression, probability distribution, correlation and hypothesis testing. | 20% |
| Valuation & Risk Models | It covers key techniques, such as VaR, stress testing, bond valuation and expected shortfall. | 30% |
| Foundations of Risk Management | This subject covers the foundation concepts of governance, financial crises and regulations. | 20% |
| Financial Markets & Products | The key topics of this subject include derivatives, financial market structure, foreign exchange, fixed income and interest rates. | 30% |
Part 2 of the exam taught how the concepts of risk management should apply in real-world conditions through its five key topics. Here is the description for the FRM course syllabus for level 2.
| Core Subjects | Overview | Weightage |
| Current Financial Issues | Covers prevalent topics, such as current market trends, AI in the financial sector and new laws regarding finance | 10% |
| Operational Risk & Resiliency | Discusses internal risks, business continuity, risk culture and cybersecurity | 20% |
| Market Risk Measurement and Management | This subject aims to advance the knowledge of VaR, market risk methods and stress testing. | 20% |
| Risk in Investment Management | It taught concepts of performance measurement, additional investment options and portfolio risk management. | 15% |
| Liquidity Risk | It covers ideologies to manage cash flow, regulatory standards of the financial market and funding risk. | 15% |
| Credit Risk Measurement and Management | It includes key concepts of default probabilities, credit derivatives, counterparty risk and capital structures in banks. | 20% |
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Taking the certification course is a tough decision which requires you to consider various factors, including the FRM course fees. But why? It is because by comprehending the fees, you can manage your budget without feeling financially drained. So, here is the breakdown of FRM course fees for you.
These charges for the FRM course exam vary based on the registration time, so to avoid extra fees, ensure you book the slot as early as possible. Plus, if you are reappearing for the FRM exam, you are not liable to pay the enrolment fee again. However, candidates should pay the examination charges for this FRM certification course, which are between $600 and $800.
Preparing for the exam effectively requires you to understand the FRM course exam dates, as it aids you in planning your study strategies accordingly. So, here are the critical dates that a FRM aspirant must know. Have a look.
FRM Exam Window for Part I
FRM Exam Window for Part II
Having come across the above information, you should have understood the exam dates and structure. But to become a certified professional, there are the following FRM course eligibility requirements, which you should meet.
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Pursuing the FRM course can boost career prospects for candidates in the finance management sector. This certification programme provides work opportunities for different designations, such as risk consultant, investment analyst and market risk manager. Plus, these skills are highly valued in the international market and allow certified FRMs to earn an annual salary up to $100,000 (INR 88.24 lakhs).
However, this may vary based on your job role, location and firm. You can see the table below to check out different career prospects and their annual FRM course salary for employees.
| Job Profile | Average Annual Salary |
| Chief Risk Officer (CRO) | $200,000 (INR 1.76 Cr) |
| Risk Analyst | $80,000 (INR 70.59 Lakhs) |
| Vice President, Finance | $130,000 (INR 1.14 Cr) |
| Credit Risk Manager | $90,000 (INR 79.41 Lakhs) |
| Quantitative Analyst | $110,000 (INR 97.06 Lakhs) |
| Market Risk Manager | $185,125 (INR 1.63 Cr) |
| Regulatory Risk Analyst | $100284 (INR 88.49 Lakhs) |
| Compliance Officer | $122119 (INR 1.07 Cr) |
| Risk Consultant | $118,976 (INR 1.04 Cr) |
| Investment Analyst | $146565 (INR 1.29 Cr) |
In essence, each certification, including the FRM course, offers its unique advantages and serves diverse professional objectives. This course emphasises enhancing your financial proficiencies and knowledge through diverse FRM course subjects. So, make sure you analyse your financial skills before you decide to take this exam. Whether you are keen to learn risk management, investment analysis, and marketing risks to asset valuation, this course offers everything. However, if you are looking for FRM coaching online and are confused about which one you should pick. Then you can seek guidance from our study-abroad consultants to get key insights regarding these courses.
Individuals who want to work in financial risk management companies should pursue this course. There is no specific undergraduate degree requirement, but for full FRM certification, candidates must have two years of professional experience in the financial field.
FRM exams are organised three times in a single year in May, August and November. Students can take both Part I and Part II in the same window.
Yes, having two years of work experience in the relevant field is crucial if you want to become a certified FRM.
It may vary person to person, as self-study requires discipline and an organised approach with strong statistics and finance knowledge. However, enrolling in coaching can be highly beneficial as it offers a targeted study approach, expert guidance for each topic and a structured study plan.
The passing rate for FRM Part I typically ranges around 44% and for Part II, this rate is 56%, indicating the exam is highly competitive.
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