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