In a world where education is gaining increasing importance, super-specializations are the way to go. For those in the Finance Industry, FRM is one of the courses that can help you land the right job or get the promotion that’s been evading you!

In this article we’re going to brief you regarding everything you need to know about the FRM Course, right from its curriculum and fees to the scope and eligibility criteria for its membership.

What is FRM? (& Full Form)

Before we get into the details of the course curriculum, it is better to understand what the course is about, its ultimate objective and who the course is best suited for.

The full form of FRM is Financial Risk Manager, i.e. FRM stands for Financial Risk Manager. The FRM Program is a course offered by the Global Association of Risk Professionals (GARP, USA). This course is designed to help professionals better equip themselves to understand and manage risks faced by businesses which leads to a career specialized in Risk Management.

FRM Course Eligibility

There is no basic criteria to undertake the FRM Examinations. A student in first year of Graduation is also eligible to appear for the FRM Part 1 exam. However, there are certain criteria to be fulfilled in order to obtain the FRM Certificate.

In order to be eligible to get certified as a Financial Risk Manager, the following criteria need to be satisfied:

  • You must have cleared Level 1 and 2 of the FRM Program, within 4 years of applying for the Part 1 exam.
  • You must have a minimum 2 years of relevant work experience in Risk profile, within 5 years of clearing Part 2 exam.
FRM-Course-Eligibility-And-Process

FRM Exam Pattern

The FRM exams (Both Parts) are held twice a year – on the third saturday of May and November. One can appear for both the parts on the same day. However, it is not recommended due to enormity of syllabus. In essence, a candidate can clear both levels of the examination within one year minimum.

Given below is a table reflecting the exam pattern of the two parts of FRM Examination –

Particulars FRM Part I FRM Part II
No. of Questions 100 MCQs 100 MCQs
Duration 4 Hours 4 Hours
Timings Morning Afternoon

FRM Course Fees

The Exam Fees depends on the level and as is common with several International Programs, offers a varied fee depending upon the deadline opted for – Early, Standard or Late. When you enroll for Part I exam, you need to pay a one-time enrollment amount of $400, which is not applicable in Part II.

Exam Level Enrollment Fees Early Standard Late
Part I $400 $425 $550 $725
Part II 0 $350 $475 $650

FRM Curriculum

The most important feature of any program is its curriculum. We’ve identified the key areas of study covered across the FRM Program.

FRM Part 1 Subjects:

Topic Weightage
Foundations of risk management 20%
Quantitative analysis 20%
Financial markets and products 30%
Valuation and risk models 30%

FRM Part 2 Subjects:

Topic Weightage
Market Risk Management 20%
Credit Risk Management 20%
Operational & Integrated Risk Management 20%
Liquidity and Treasury Risk Measurement and Management 15%
Risk management and investment management 15%
Current issues in financial markets 10%
Every year, the FRM curriculum undergoes a revision led by GARP’s FRM Committee. This process aims to maintain the relevance of the FRM Exam as an accurate evaluation of the essential knowledge and abilities required for effective financial risk management.

FRM Exam Dates & Deadlines 

The exam windows are provided below:

FRM Part I Exam Window

November 4–17, 2023
May 2024
August 2024

FRM Part II Exam Window

November 18–24, 2023
May 2024
August 2024

November Exam Deadlines

Dates Description
May 1, 2023
Registration Opens
Scheduling Opens
July 31, 2023 Early Registration Ends
August 31, 2023 ADA applications must be received
September 30, 2023 Registration Closes
Last day to defer to the next Exam
October 20, 2023
Last day to schedule/reschedule Exam
Last day to select/change exam sites
Part 1:
November 4-17, 2023Part II:
November 18-24, 2023
Exam dates

 

Job Profiles and Salary Of FRM Charter

Any profile that a FRM Charterholder gets into, will involve calculation of risk, some way or the other.

Take an example of a Risk Manager of an Insurance company. The Risk Manager would determine whether or not to extend an insurance cover to a particular asset, person or a business . He uses various quantitative tools to arrive at the decision. The FRM course teaches you such tools to arrive at such decisions.

Upon completion of the certification, regardless of the title given to you, your basic job profile would focus around Risk Analysis, Risk Identification and Risk Management for various investments and projects that you work on.

  • Job profiles – Risk Analyst, Operation Risk officer, Risk consultant, Portfolio Manger, Credit risk specialists etc.
  • Average Salary – The Salary of FRM Charter depends upon the work experience, Job profile and the recruiter. Average salary of FRM is $99,000 in USA and INR 10,00,000 in India
  • Recruiters – Recruiters Include Investment Banks, Commercial Banks, Insurance companies and consulting firms such as HSBC, CITI, Goldman Sachs, JP Morgan, Allianz etc.

Frequently Asked Questions (FAQS)

What is the salary of FRM Charterholer?

The Salary of FRM Charter depends upon the work experience, Job profile and the recruiter. Average salary of FRM is $99,000 in USA and INR 10,00,000 in India

What are the Job opportunities after FRM?

A FRM Charter can work in Job profiles such as Risk Analyst, Operation Risk officer, Risk consultant, Portfolio Manger, Credit risk specialists etc.

What is the Fees of FRM Exam?

Initial enrollment fees for FRM Exam is $400 . The additional registration fees for Part I is between $425 to $725 and for Part II is between $350 to $650 depending upon the deadline you want to apply in.