The Financial Risk Manager (FRM) certification is one of the most respected professions in the finance industry. It is offered by the Global Association of Risk Professionals (GARP) and validates expertise in risk management.
The FRM exams cannot be passed with rote memorisation. This exam assesses a candidate’s ability to apply risk concepts in real-world scenarios. Preparing for the FRM exam requires the right study materials, a solid strategy, and disciplined effort. This blog covers the best FRM courses and FRM exam study tips to help you pass in one go.
Understanding the FRM exam structure
The FRM course is divided into two parts. Each of them tests different aspects of financial risk management:
| Exam part | Focus areas | Question format | Duration |
| Part I | Foundations of risk, quant methods, financial markets, valuation | 100 MCQs | 4 hours |
| Part II | Market, credit, operational risk, risk management, investment risk | 80 MCQs | 4 hours |
According to GARP, the pass rate for FRM Part I hovers around 55%, while Part II sees a slightly higher success rate of 52%. It indicates that persistence and preparation are compulsory.
How to prepare for FRM courses and FRM exams
A high-quality preparation strategy hinges on two things: conceptual clarity and rigorous problem-solving.
While study materials help with the former, mock tests and practice papers refine the latter. Here’s how you can formulate an effective approach for the FRM course and FRM exam.
Create an effective study plan
A well-planned approach increases your chances of passing on the first attempt. Consider the following:
- Set a realistic timeline:
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- GARP recommends an average of 240 hours of study per exam. Spreading it across 4-6 months ensures steady progress.
- Daily study sessions should be structured into concept learning, revision, and problem-solving.
| Timeline | Study focus | Key actions |
| 4-6 months before the exam | Concept building |
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| 2-3 months before the exam | Practice and application |
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| Final month | Exam simulation |
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- Choose the right study materials:
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- Rely on GARP’s official books for theory and fundamental understanding. They also have extensive online resources and study documents for both Part I and II.
- Supplement with online notes for clarity and concise summaries. You can also go for video lectures and classes if you are a visual learner.
- Use financial risk-related articles and case studies to strengthen application-based knowledge.
- Prioritise high-weightage topics:
Not all topics carry equal weight. Prioritising the most tested concepts increases efficiency.
| Topic | Approximate weightage in Part I |
| Quantitative Methods | 20% |
| Foundations of Risk | 20% |
| Valuation & Risk Models | 30% |
| Financial Markets | 30% |
| Topic | Approximate weightage in Part II |
| Operational and integrated risk management | 20% |
| Credit risk measurement and management | 20% |
| Market risk measurement and management | 20% |
| Risk management and investment management | 15% |
| Liquidity and treasury risk measurement and management | 15% |
| Current issues in financial markets | 10% |
- Master Key quantitative concepts:
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- The FRM exams are highly quantitative. A strong command over probability, statistics, and valuation is essential.
- Solve at least 30-40 numerical problems per topic to gain confidence.
- Attempting at least 5-6 full-length tests improves time management.
- Analyse mistakes and revisit weak areas after each test.
Preparation techniques for maximum retention
Many candidates struggle with retaining vast amounts of information. The following techniques help:
- The Feynman technique: Simplify complex topics by explaining them in plain language. If you cannot explain it in simple terms, revisit the material.
- Active recall and spaced repetition: Instead of re-reading, try to recall concepts from memory. Use spaced repetition apps to ensure regular review of formulas and concepts.
- Mind mapping for interconnected topics: Visualise relationships between risk factors, VaR models, and stress testing techniques. Video lectures help in this case. Mind maps help in quick revisions closer to the exam date.
Exam day strategy
A clear strategy on exam day ensures a smooth experience. Keep these tips in mind:
- Allocate 1.5 minutes per question to avoid a last-minute rush.
- If unsure, eliminate incorrect choices to improve your odds.
- High-pressure exams demand a composed mindset to think clearly.
Conclusion
According to GARP, over 77,000 professionals worldwide hold the FRM designation. It signals deep expertise in financial risk and opens career opportunities in top banks, hedge funds, and asset management firms.
Conquering this FRM course and FRM exam is not about the sheer volume of study hours. The quality of preparation matters more. A structured plan, consistent problem-solving, and exam simulations will provide the best results.
If you are serious about passing, start now. The earlier you begin, the better your chances of success. Good luck!
FAQs
- What is the passing score for the FRM exam?
GARP does not disclose exact passing scores. However, candidates need to score in the top 45-55% to pass.
- Can I take both FRM Part I and Part II together?
You can sit for both on the same day. However, passing Part I is mandatory for your Part II exam to be graded.
- Are FRM exams open-book?
No, FRM exams are strictly closed-book. You can use a simple calculator, but no notes, formula sheets, or reference materials are allowed.
