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).With 2008 subprime crisis, 2013 recession in Europe, 2020 when it was the Covid year and biggest brunt was borne by the financial institutions, 2023 when many of the US banks collapsed, the risk management has never been as pivotal and critical in these complex an uncertain times.
FRM is perhaps the most recognized degree in the world for all those who want to pursue a career in Risk Management.
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. Financial Risk Managers hold the expertise and are committed to better risk management practices, thus standing apart in their respective organizations.
GARP® provides the FRM® course in 195 countries and territories and has over 279,000 Members. GARP® offers Continuing Professional Development (CPD) program for risk professionals to access the latest updates in risk education
Particulars | FRM Part I | FRM Part II |
No. of Questions | 100 MCQs | 100 MCQs |
Duration | 4 Hours | 4 Hours |
Timings | Morning | Afternoon |
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.
Recruiters – Recruiters Include Investment Banks, Commercial Banks, Insurance companies and consulting firms such as HSBC, CITI, Goldman Sachs, JP Morgan, Allianz, Blackrock etc.
Exam Level | Enrollment Fees | Early | Standard | Late |
Part I | $400 | $425 | $550 | $725 |
Part II | 0 | $350 | $475 | $650 |
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.
In the Wall Street School we have had 12thPassouts who want to pursue a career in Risk. We have also had retired bankers who are 65 +who undertake FRM program who want to use their years of experience substantiating with a professional degree recognized Globally. So Age group is quite diverse and broad.
However, In order to be eligible to get CERTIFIED as a Financial Risk Manager, the following criteria need to be satisfied:
No other extra preparation is required apart from the Material referred to in our course.
We follow core practical approach while explaining each and every concept of examination.
We’re an official Exam Prep Provider (EPP) of GARP institute for both online and offline training.
Our trainers are FRM charterholder with years of experience in Risk modeling with top Banks.
What you learn:
Market Risk is the most dynamic and interesting section of the entire FRM part II curriculum. Candidate must understand the VAR and ES calculation from Parametric and Non Parametric approach. Back-testing of these approaches are thoroughly discussed. As a risk manger one should understand the impact of correlation, properties and behavior of correlation in different market scenario. The four chapters discussed in this section on interest rate modeling will put you at par with industry veterans. FRTB, newly added capital requirement framework has been well explained in this section.
The key points covered in Market Risk and Management are:
The most relevant discussion from the job perspective is credit risk. This section has highlighted all the possible modeling of Probability of Default (structural, reduced, factor model or credit scoring model). Counterparty risk which is the most prevalent job in the risk domain has thoroughly been discussed. Securitization and securitized product has also been discussed from the credit risk perspective.
The key points covered in readings related to Credit Risk Measurement and Management includes the following:
Where firms undermine the importance of operation risk, FRM curriculum explains how to set proper risk culture and conduct in the firm. This section also discusses the implementation of ERM program, and principles for risk appetite frameworks. Candidate should also understand analytical discussion of operational risk measurement and reporting operational losses. Capital planning and recommended practices for stress testing are well explained in the latter half of the section.
The key points covered in Operational Risk and Resiliency includes the following:
This section is a new entry in the curriculum after understanding the importance of liquidity. A lesson well learnt form 2007-08 financial crisis and recessionary period. Discussion is primarily on the transaction liquidity risk, funding liquidity risk, liquidity stress testing, reporting, deposits, repos and ALM.
The key highlight of Liquidity Risk and Treasury Risk includes the following:
What you learn:
Now a day where factor investing is the norms across the Investment domain, a risk manger should understand the factors as the drivers of risk. This section make you well versed with single factor and multifactor model used to determine risk premium and alpha, and how one can construct optimum portfolio with different investment constraints and compare it against the benchmark.
The key points covered in Risk Management and Investment Management includes the following:
What you learn:
Discuss the most pressing and relevant issues in the Risk domain. Include readings and research paper of practitioner and scholars. Highlight the challenges faced by Financial institution due transition of LIBOR and climate risk. Explains the importance of Machine learning and Big data for Risk Mangers. The sections also contain the most discussed issues of Covid19 from the perspective of financial risk management.
The key highlight of Current Issues in Financial Markets includes the following:
What you learn:
There are many FRM Students who pursue the Financial Modeling and Valuations Program offered by The Wall Street School simultaneously or (Post FRM) to learn the practical skillsets in the domain of finance . The Students who are FRM Level I / FRM Level 2 and certified in Financial Modeling and valuations skills get placed in the under mentioned companies.
For more details on the combo packages being offered by The Wall Street School, Please refer here
10+ Years of experience
Ex - HSBC, CITI, PWC
FRM & CFA Charterholder
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FRM Part I focuses on understanding of risk and financial risk. It covers:
The FRM Exam Part II cover in-depth concepts of Market Risk, Credit Risk , Liquidity Risk , etc . It covers:
Before enrolling in the FRM Program, no specific educational or professional prerequisites are required. You can register for the program without needing any specific qualifications or prior experience.
The amount of time required to prepare for the FRM (Financial Risk Manager) examination can vary significantly from person to person based on factors such as your background knowledge, experience, study habits, and familiarity with the material.
However, GARP (Global Association of Risk Professionals) recommends that candidates devote approximately 200-240 hours of study time for each part of the FRM Exam. This is a rough guideline and the actual time needed may vary.
Keep in mind that the FRM Exam covers a comprehensive range of topics related to financial risk management, including quantitative analysis, risk management foundations, risk modeling, market risk, credit risk, operational risk, and more. It’s important to allocate sufficient time for both reviewing the study materials and practicing with mock exams and practice questions to ensure a thorough understanding of the concepts and a successful exam outcome.
The FRM Exam incorporates a moderate level of quantitative content. The mathematical complexity of the exam is akin to that of an advanced undergraduate or an introductory graduate-level finance course commonly taught at universities. While the FRM Exam emphasizes conceptual understanding, candidates are expected to be familiar with essential formulas and calculations and should be capable of their accurate application. It’s important to note that formula sheets are not provided during the exam.
GARP (Global Association of Risk Professionals) aims to uphold a high-quality curriculum and the related study materials for their program. To ensure that the content remains current and precise, GARP conducts an annual review of the curriculum. Revisions and updates are implemented, and new study materials are typically made available on December 1st for the subsequent calendar year. This practice ensures that the FRM program’s content remains up-to-date and in line with the evolving field of financial risk management.
To postpone an upcoming FRM Exam to the next available session, follow these steps:
Opting for the FRM (Financial Risk Manager) certification can offer several compelling benefits for individuals interested in the field of financial risk management. Here are some reasons why you might consider pursuing the FRM designation:
Ultimately, the decision to pursue the FRM certification depends on your career goals, interests, and aspirations within the financial industry. If you have a strong inclination toward risk management and want to excel in this specialized field, the FRM designation can be a valuable investment in your professional future.
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Financial Modeling & Valuations Program
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Financial Modeling & Valuations Program
FM - Weekdays - 08th December 2023
FM - Weekends - 09th December 2023
Live Online - CFA Coaching
CFA Level 1 - Weekend: 2nd December 2023
Live Online - FRM Coaching
FRM Part 1 - Live Online Classes - Weekend 2nd December 2023
Live Online - ACCA® Coaching
BT-Business and Technology - ACCA Live Online Classes - Weekend: 05th Nov 2023
MA-Management Accounting - ACCA Live Online Classes - Weekday 06th Nov 2023
FM-Financial Management - ACCA Live Online Classes - Weekend: 05th Nov 2023
SBL- Strategic Business Leader: ACCA Live Online Classes - Weekend: 05th Nov 2023
Live Online - CMA® Coaching
CMA Live Classes: To be Announced
Live Online - CIMA Coaching
CIMA - Live Online Classes: To be Announced
Financial Modeling & Valuations Program
FM - Weekdays - 08th December 2023
FM - Weekends - 09th December 2023
Live Online - CFA Coaching
CFA Level 1 - Weekend: 2nd December 2023
Live Online - FRM Coaching
FRM Part 1 - Live Online Classes - Weekend 2nd December 2023
Live Online - ACCA Coaching
SBL- Strategic Business Leader: ACCA Live Online Classes - Weekend: 05th Nov 2023
Live Online - CMA Coaching
CMA Live Classes: To be Announced
Live Online - CIMA Coaching
CIMA - Live Online Classes: To be Announced