Financial Risk Manager
Frequently Asked Questions
FRM Exam Part I is an equally weighted 100 question multiple-choice Exam, and the FRM Exam Part II is an equally weighted 80 question multiple-choice Exam. Both Exams are administered via computer-based testing (CBT).
No. You must understand that a candidate can only register for the FRM Part II exam after successfully passing Part I. The other chance is that you must register to sit for both parties on the same day.
The FRM Part I Exam will have 100 multiple-choice questions, whereas Part II will have 80
FRM Part I Topics and Weights
Foundations of risk management (20%)
Quantitative analysis (20%)
Financial markets and products (30%)
Valuation and risk models (30%)
FRM Exam Part II topics are based on applying the tools tested in Part I and are weighted as follows:
Market risk measurement and management (20%)
Operational risk and resiliency (20%)
Credit risk measurement and management (20%)
Liquidity and treasury risk measurement and management (15%)
Risk management and investment management (15%)
Current issues in financial markets (10%).
Preparing for the FRM Exam requires disciplined study to grasp the numerous concepts covered in both Part I and Part II. It is a challenging exam, and some candidates may initially fail FRM Level 1 but succeed after making another attempt. On average, a higher number of candidates pass FRM Level 2 compared to Level 1.
According to GARP, it is advised to allocate approximately 150 to 200 hours of study for each part of the exam, totaling 300 to 400 hours of preparation.
No specific educational or professional prerequisites are required for registration.
The FRM designation is a globally recognized certification in financial risk management awarded by the Global Association of Risk Professionals (GARP).
It signifies expertise in assessing, managing, and mitigating various types of financial risks, enhancing career opportunities in the finance industry.
Yes, it is permissible to take both exams on the same day. The Part I exam is typically scheduled for the morning session, while the Part II exam is conducted in the afternoon.