How Difficult Is the FRM Exam by GARP? 

The Global Association of Risk Professionals (GARP) offers the prestigious Financial Risk Management certification. It is globally acclaimed as the foremost certification for financial risk experts. The Financial Risk Manager (FRM) designation is the gold standard for organisations seeking to validate their risk management staff’s proficiency in cutting-edge financial risk principles.  

Earning the FRM certification involves passing two rigorous examinations and accumulating two years of experience in risk management. This blog delves into the difficulty levels of the FRM certification conferred by GARP with study tips to help you ace the challenges.

Difficulty Level of the FRM Exam

The FRM exam by GARP is divided into two parts. 

Part I has 100 multiple-choice questions, with a duration of 4 hours. Part I mainly focuses on the examination of tools for evaluating financial risk. 

Part II is also of 4 hours duration. It consists of 80 multiple-choice questions and delves into the practical application of the risk assessment tools. 

Candidates are evaluated on a pass/fail basis.

The following table shows the FRM exam pass rates over the last five years:

Source: GARP

So, how difficult is the FRM exam by GARP?

Looking at the above table, we see that the pass rates for Part II are significantly higher than Part I over the years. The pass rates for Part I and II also show an upward trend. 

As per UK ENIC, the difficulty of FRM is comparable to RQF Level 7 (equivalent to a master’s degree). The learning objectives of FRM cover higher-order thinking skills and specialised knowledge expected of RQF Level 7 qualification holders. Scenario-based questions testing the candidate’s practical problem-solving skills and applied questions (Part II) assessing cumulative knowledge give an idea of the scope and demand of the FRM exams.

Although the trends and benchmarks do not tell how “difficult” the exams are, they provide an objective way for candidates to assess and approach their exam preparations.

Study Tips To Crack the FRM Exam

The FRM exams are challenging but manageable with hard work, dedication and a proper study plan. Here are some tips to help you crack the FRM exam:

Dedicate study time

Begin early to master concepts and practice question-solving. Successful FRM certification holders attribute their success to dedicated hours of study. 

Focus on the study material

Given the extensive exam content, it’s advisable to establish a weekly study timetable. Organising your study plan lets you systematically monitor your progress.

Practice mock exams

Allocate dedicated time for mock exams for a realistic test experience. Timing and pressure simulation will enhance your readiness. 

Stay calm before the exam

During the exam, begin with simpler questions to boost your confidence. Do not panic if you cannot answer a question. Move on to the next one and address the challenging questions later.

Conclusion

Preparing for a challenging examination like FRM can be overwhelming. If you want to ace the exam easily, consider enrolling in the FRM preparatory classes offered by The WallStreet School, India. With the comprehensive study material and expert guidance, cracking the FRM examination by GARP will be easier. 

The WallStreet School offers both FRM classroom coaching and online FRM courses. Enrol now and kickstart your FRM journey!

Reach out to us via email or phone (+91-9953729651).

FAQs

• Is 4 months enough for FRM Level 2?

The exact time to prepare for the FRM exam can be subjective. However, a good 9 months of rigorous preparation is advisable to crack the FRM level 2 examination. 

• Is FRM math-heavy?

Maths is an essential part of the FRM examination as it has 20% weightage.

• Is the FRM exam tough or easy?

The FRM exam is challenging but manageable with a dedicated study plan, regular mock tests and, most importantly, hard work.