Certification Guide
FRM
Financial Risk Manager
Global certification from GARP focused on financial risk — market, credit, operational, and investment risk.
What it is, in detail
The FRM is the leading global credential for risk professionals. It is a 2-part exam followed by 2 years of qualifying work experience. Widely required for bank risk teams, hedge fund risk officers, and regulatory roles.
Quick facts
- Eligibility
- No academic prerequisite; work experience needed for the certification (not the exams).
- Duration
- 2 parts (can attempt same day); typically 1–2 years total.
- Approximate Cost
- One-time enrolment $400 + $600–$800 per part. Total ~$1,500–$2,000.
- Difficulty
- Advanced
Passing: Global pass rates: Part 1 ~45%, Part 2 ~55%.
Syllabus outline
Part 1 — Foundations
- Foundations of risk management
- Quantitative analysis
- Financial markets & products
- Valuation & risk models
Part 2 — Application
- Market risk
- Credit risk
- Operational & integrated risk
- Liquidity & treasury risk
- Risk management & investment
- Current issues
Step-by-step roadmap
- 1
Register on GARP
Pay one-time enrolment + Part 1 fee.
- 2
Study 200–300 hours per part
Bionic Turtle, Schweser, or GARP's own material.
- 3
Pass Part 1
MCQ, 100 questions, 4 hours.
- 4
Pass Part 2
80 questions, 4 hours; more scenario-based.
- 5
Log 24 months of relevant risk experience
Bank risk, quant, compliance, trading, portfolio management all count.
- 6
Certification granted
You may now use 'FRM' after your name.
Careers this unlocks
- Market risk analyst
- Credit risk manager
- Operational risk
- Regulatory compliance
- Bank treasury
- Model validation
Study resources
- • GARP official study material
- • Bionic Turtle
- • Schweser