Focus: FRM Part 2 zeroes in on the application of financial risk management tools, techniques, and strategies, building on the foundational knowledge from Part 1. It delves deeper into advanced risk management practices, equipping you with the expertise needed to address complex risk scenarios.

Curriculum: Topics covered include market risk, credit risk, operational risk, liquidity and treasury risk management, risk management in investment management, and current issues in financial markets. This advanced curriculum is designed to provide a comprehensive understanding of risk management across various domains.

Passing Rate: The average pass rate for FRM Part 2 is around 50%, reflecting the challenging nature of this exam.

Updates: As of January 2024, the curriculum has been enhanced to include expanded coverage of emerging risks, advanced quantitative methods, ESG (Environmental, Social, and Governance) factors, and the impact of AI and other technological advancements on risk management.

Program Duration: Preparing for FRM Part 2 typically requires several months of dedicated study, focusing on mastering advanced risk management concepts and successfully applying them in real-world scenarios.

FRM (Financial Risk Manager)

Scope: Comprehensive certification focused on risk management across various financial domains, including market, credit, operational, and investment risks.

Curriculum: Divided into two parts:

• Part 1: Foundational risk management tools, quantitative analysis, financial markets, and valuation techniques.
• Part 2: Advanced application of risk management practices, including market, credit, and operational risks, and risk management in investment management.

Focus: Practical application of risk management principles with a strong emphasis on real-world scenarios and evolving regulatory environments.

Recognition: Globally recognized and highly valued by top employers in the financial industry, particularly for roles requiring deep expertise in risk management.

Career Path: Ideal for roles in risk management, risk consulting, financial analysis, and regulatory compliance.

Requirements: Requires two years of professional experience in risk management or a related field to achieve certification, in addition to passing two levels of exams.

PRM (Professional Risk Manager)

Scope: Certification focused on risk management, emphasizing quantitative risk measurement and modeling techniques.

Curriculum: Composed of four exams:

• Exam 1: Foundations of Risk Management.
• Exam 2: Quantitative Analysis.
• Exam 3: Financial Instruments.
• Exam 4: Case Studies, Standards, Governance, and Ethics.

Focus: Strong emphasis on quantitative risk analysis and theoretical understanding, with a specific focus on risk measurement and control.

Recognition: Recognized globally but often seen as more niche, particularly within roles that require specialized quantitative skills.

Career Path: Suitable for roles in risk analysis, quantitative risk modeling, and financial risk management, particularly in technical and quantitative environments.

Requirements: Requires passing four exams and demonstrating two years of professional experience in risk management or a related field.

• Global Recognition: Over 87,000 FRM-certified professionals in more than 160 countries, recognized as leaders in financial risk management.

  Rigorous Curriculum: Divided into two parts, covering essential risk management topics, from quantitative analysis to advanced risk management practices, with global pass rates of approximately 45% for Part 1 and 50% for Part 2.

  Career Advancement: Enhances career opportunities in risk management, financial analysis, regulatory compliance, and consulting across various industries.

  Industry-Relevant Standards: Emphasizes practical, real-world risk management applications, aligned with the latest industry standards and evolving regulatory requirements.

  High Demand: Highly regarded by top financial institutions, regulators, and global firms as the benchmark for risk management professionals.

  Professional Growth: Requires two years of relevant work experience, ensuring that certified professionals possess both theoretical knowledge and practical expertise.

  Program Duration: Typically 1-2 years to complete, offering flexible study options that accommodate working professionals.

  Annual Enrollment: Thousands of candidates worldwide register for the FRM exams each year, reflecting its growing importance and demand in the global financial industry.

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• Advanced Risk Management: Delves deeper into market risk, credit risk, operational risk, and liquidity risk, building on the foundation from Part 1.

• Practical Application: Focuses on real-world scenarios and case studies, ensuring you can apply risk management techniques effectively in practice.

• Risk Management in Investment Management: Explores how risk management principles are applied within investment management, providing a specialized understanding of this field.

• Current Issues in Financial Markets: Covers the latest trends and challenges in financial markets, helping you stay informed and relevant in a rapidly evolving industry.

• Regulatory and Compliance Issues: Includes detailed discussions on the regulatory environment and compliance requirements, crucial for modern risk managers.

• Emerging Risks: Addresses new and emerging risks, including those related to technology, cybersecurity, and geopolitical factors, preparing you for future challenges.

• Quantitative Methods: Expands on quantitative risk analysis, with a focus on advanced techniques and tools used in the industry.

• ESG and Ethical Considerations: Incorporates Environmental, Social, and Governance (ESG) factors, reflecting the growing importance of ethical considerations in risk management.

• Technological Impact: Examines the role of AI, big data, and other technological advancements in risk management, ensuring you're equipped to navigate the future landscape.

• Exam-Focused Preparation: Provides targeted preparation strategies, practice exams, and resources specifically designed to help you pass the challenging FRM Part 2 exam with confidence.

• Completion of FRM Part 1: You must have successfully passed the FRM Part 1 exam. FRM Part 2 builds on the foundational knowledge acquired in Part 1, so passing Part 1 is a prerequisite.

• Registration with GARP: You need to be registered with the Global Association of Risk Professionals (GARP) to take the FRM Part 2 exam.

• No Specific Work Experience Required: While there is no specific work experience required to sit for the FRM Part 2 exam, having a background in finance, risk management, or a related field can be beneficial.

• Continuous Learning Commitment: As the FRM program is highly rigorous, candidates should be committed to ongoing learning and professional development to succeed in both the exam and the risk management profession.

After completing FRM Part 2, you can pursue a variety of career opportunities in the field of risk management and finance, including:

1. Risk Manager: Oversee and manage financial, operational, and market risks within an organization.

2. Credit Risk Analyst: Assess and manage the risk of credit exposure, evaluating the creditworthiness of counterparties.

3. Market Risk Analyst: Analyze and manage the risk of loss in financial markets, focusing on variables such as interest rates, currency rates, and equity prices.

4. Operational Risk Manager: Identify, assess, and mitigate risks associated with the internal processes, systems, and people within an organization.

5. Risk Consultant: Provide expert advice to companies on how to identify, measure, and mitigate risks across various sectors.

6. Portfolio Risk Manager: Manage risk across investment portfolios, ensuring that risk exposure aligns with investment objectives.

7. Treasury Risk Analyst: Focus on managing liquidity and treasury functions, ensuring the organization has adequate liquidity to meet its obligations.

8. Chief Risk Officer (CRO): Lead the risk management strategy and operations at a senior level within an organization, guiding the entire risk management framework.

9. Regulatory Risk Manager: Ensure compliance with financial regulations and manage the risks associated with regulatory changes.

10. Quantitative Risk Analyst: Use quantitative methods and models to assess and manage risk, often in investment banking or financial institutions.

These roles are critical in today’s financial landscape, as organizations increasingly prioritize effective risk management to safeguard against uncertainties.

• High Pass Rates: Benefit from our proven preparation strategies that have helped students achieve pass rates significantly above the global average, with over 80% of our students passing both FRM Part 1 and Part 2.
• Experienced Faculty: Learn from our team of FRM-certified professionals and industry experts with over 20+ years of combined experience in risk management.
• Comprehensive Curriculum: Our program covers all key areas of the FRM exam with 180+ hours of detailed video content, including the latest updates in risk management practices, regulatory changes, and emerging trends.
• Practical Focus: Engage in hands-on learning through 30+ real-world case studies, simulations, and practical exercises designed to prepare you for the challenges faced by risk management professionals.
• Flexible Learning Options: Access our training through live classes, hybrid formats, and over 200+ hours of pre-recorded sessions, allowing you to study at your own pace and convenience.
• Global Recognition: Our FRM training program is aligned with the globally recognized standards set by GARP, enhancing your credentials and career prospects.
• Career Support: Leverage our strong network of over 10,000+ risk management professionals and alumni for career guidance, job placements, and industry connections.
• Proven Track Record: Join the ranks of over 46,693 students who have successfully trained with The WallStreet School, with a large number advancing their careers in top financial institutions.
• Updated Content: Stay ahead with our regularly updated curriculum, reflecting the latest developments in the financial risk management industry.