Is the FRM Exam Difficult? A Student’s Perspective
The Financial Risk Manager (FRM) exam is widely regarded as a challenging certification in the finance industry. It assesses a candidate’s ability to understand and apply risk management concepts to real-world scenarios.
Some candidates find the FRM exam difficult, whereas, for some, it is easy with the right strategy. The exam demands strong analytical skills, deep understanding, and rigorous preparation. In this blog, let us look into the difficulty level of this exam from a student’s perspective.
Exam structure and content
The FRM exam is divided into two parts:
- Part I focuses on the tools for evaluating financial risk, including fundamental risk management concepts, quantitative valuation and risk models, and financial markets and products. This section consists of 100 multiple-choice questions, which must be completed in 4 hours.
- Part II covers market risk, operational risk, credit risk, and treasury risk management. It also lasts four hours and includes 80 multiple-choice questions.
The time needed for FRM preparation:
On average, students spend 200 to 300 hours per part to prepare. The intensity of preparation is what makes the FRM exam difficult.
| Study method | Recommended hours |
| Self-study | 250 – 300 hours per part |
| Coaching classes | 200 – 250 hours per part |
| Mock exams and practice | 50 – 80 hours |
Passing rates:
Historically, the FRM exam has maintained moderate pass rates, reflecting its rigorous standards:
| Part I | Pass rates have ranged from 39% to 56% | 47% on average of 14-year time |
| Part II | Pass rates have ranged from 50% to 63% | 56% on average of 14-year time |
These statistics show why most students find the FRM exam difficult in many parts. The FRM exam’s difficulty has been benchmarked under the UK Regulated Qualifications Framework (RQF) at Level 7, which is comparable to a master’s degree.
Notably, passing FRM Part II has been equated in difficulty to passing all three levels of the Chartered Financial Analyst (CFA)
A student’s perspective on what makes the FRM exam difficult
The syllabus for FRM is vast and the passing rates are almost half. If you do not manage your time well, you may struggle. Here are some challenges students face:
- Wide syllabus:
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- The FRM curriculum covers deep and technical risk management concepts.
- Some students find the quantitative analysis section very tough.
- Application-based questions:
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- Questions are not straightforward.
- You need to understand and apply concepts rather than just recall formulas.
- Time pressure:
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- Each exam lasts 4 hours, and students must answer one question in around 2.4 minutes.
- If you are slow in calculations, you may struggle.
- High competition:
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- Many candidates are working professionals with strong financial backgrounds.
- Competing with experienced candidates makes it even harder.
How to prepare effectively for FRM?
To crack the FRM exam in one chance, having a structured study plan is needed. You need to start with:
- Understanding the exam pattern, knowing the question types, and learning the difficulty level.
- Use the official GARP books. However, since they are comprehensive but dense, you also have to supplement them with third-party guides.
- Take at least 5 to 7 full-length mock tests before the exam.
- Create a weekly study schedule and track progress.
- If you struggle with quantitative topics, dedicate extra time.
Apart from this, follow a constructive study timeline. The recommended timetable is:
| Study phase | Duration | Activities |
| Initial learning | 2-3 months | Read study materials, take notes |
| Practice and review | 1-2 months | Solve past papers, take mocks |
| Final revision | 2-3 weeks | Focus on weak areas and formula revision |
The role of professional experience in FRM:
While there are no prerequisites to register for the FRM exam, having professional experience in financial risk management can provide practical insights that are advantageous during preparation.
Real-world exposure to risk assessment and management practices can enhance understanding and retention of complex concepts.
Is the FRM exam difficult?
Yes, the FRM exam is difficult. It requires strong quantitative skills, practical application, and disciplined study. If you prepare with a proper strategy, passing is achievable.
However, once done, it is worth it on so many levels. Those who pass often secure high-paying jobs in banks, hedge funds, and investment firms. You can work in countries like the UK, Canada, the US, Singapore, the UAE, and more, and be a part of over 90,000 members of this elite professional group worldwide.
So, if you still find the FRM exam difficult but want to appear, now is the time. Prepare well and crack it!
FAQs
- How long do I have to complete both parts of the FRM Exam?
Candidates must pass Part II within four years of passing Part I to maintain their exam status.
- How quantitative is the FRM Exam?
The exam’s mathematical difficulty aligns with advanced undergraduate or introductory graduate-level finance courses.
- How can I improve my speed during the exam?
Time yourself while solving questions. Skip difficult ones initially and return later. Use elimination techniques to narrow down choices quickly.
