FRM, or Financial Risk Manager, is a highly esteemed worldwide recognized qualification for finance professionals specializing in risk management. Administered by the Global Association of Risk Professionals, this qualification enables individuals to gain knowledge at an advanced level on the identification, evaluation, and control of various financial risks. Whether you are a student, finance enthusiast, or a working professional, this article provides all the details you might want to know about the FRM course regarding eligibility, syllabus, fees, career scope, etc.
What is FRM?
The FRM certification opens a rewarding career door in risk management. FRM, or Financial Risk Manager, is an international certification for the finance professional focusing on risk management. This qualification empowers professionals with the knowledge and skills to identify, measure, and manage financial market risks. The FRM certification is managed by the Global Association of Risk Professionals (GARP) and is a gold standard in the industry. It leads to lucrative banking, investment companies, and financial institution roles.
| Category | Details |
| FRM Full Form | Financial Risk Manager |
| FRM Course Level | 2 Levels and Certification |
| FRM Course Duration | 1-2 Years |
| FRM Exam Conducting Body | Global Association of Risk Professional (GARP) |
| FRM Course Exam | FRM Part 1 |
| FRM Part 2 | |
| FRM Eligibility | After Graduation |
| Difficulty Level (passing percentage) | 45% for Part I and 63% for Part II |
| FRM Fees | ₹1,20,000- ₹2,00,000 |
| FRM Area of Employment | Financial services industry, Risk management within banking institutions, Investment firms, Asset management companies, Insurance firms, and Consulting firms |
| FRM Exam Format | Computer-Based |
| FRM Job Profile | Risk Manager, Regulatory Risk Analyst, Risk Specialist, Financial Analyst, Credit Risk Analyst, Treasury Manager and Portfolio manager |
| FRM Average Salary | ₹9 Lakhs-₹12 Lakhs |
| Top Hiring Firms | PWC, JP Morgan Chase, Consulting Firms and ICBC |
FRM Full Form
FRM stands for Financial Risk Manager. It is an international certification from the Global Association of Risk Professionals or GARP. The certificate is intended for professionals in search of excellence in risk management. It falls within the umbrella of market, credit, and operational risks. FRM certification demonstrates proficiency in identifying, analyzing, and mitigating financial risks. Employers within banks, investment firms, and financial institutions globally place a premium on it, making it the go-to option for career advancement in finance.
Why Study FRM Course?
FRM is apt for a candidate seeking a growth track in finance with an explicit propensity toward managing risk. It exposés the candidate to advanced knowledge regarding market, credit, and operational risks, thus exposing them to changing challenges and opportunities in finance. Top banks, including HSBC, JPMorgan, and ICICI Bank, recognize this credential globally.
Earning the FRM certification builds skills with hands-on risk management tools used worldwide. It opens opportunities for better job prospects, greater salaries, and career advancement. Moreover, a GARP member meets other risk management professionals worldwide; this creates networks that can facilitate future career success. The various lucrative career prospects that the FRM course offers are:
- Operational Risk Manager
- Risk Manager
- Regulatory Risk Analyst
- Risk specialist
- Chief Risk Officer
- Credit Risk Analyst
- Market Risk Analyst
Who Can Pursue FRM Course?
The FRM certification appeals to all career levels, from students to experienced professionals. Commerce graduates with a finance background may employ this to step into risk management roles. MBA finance or banking students may add this credential to differentiate themselves in this competitive job market.
This course is also excellent for working professionals such as financial analysts, accountants, or investment bankers who want to specialize in risk management. Career changers from unrelated industries who get an FRM certification can successfully change professions into risk management and establish a great groundwork for a new career path.
FRM Course Fees
The FRM course fee is based on the time of enrollment and the study material. While enrolling for the program, the applicant must pay an initial one-time registration fee of $400 (₹35000 Approx.). Fees for the exam vary based on enrollment time: Early-$600 (₹52000 Approx.); Standard $800(₹70000 Approx.); and Late-$1,000 (₹87000 Approx.). All these fees are paid separately for Part 1 and Part 2.
The Study material can cost about $200–$500 (₹17000-₹44000 Approx.), depending on the fact whether one is purchasing the official GARP material or a third-party package. Preplanning and early registration also reduce the fees paid for the exams. FRM is an excellent investment for the career-building process in risk management.
| Particulars | Fees (Approx.) |
| One-Time Enrollment Fee | ₹35000 |
| Early Registration Fee | ₹52000 |
| Standard Registration Fee | ₹70000 |
| Total Fees | ₹1,57,000 |
FRM Course Eligibility
If you want to know about FRM eligibility, there are no strict educational or professional prerequisites for enrolling in the FRM program, making it accessible to a wide range of aspirants. As GARP, There is no minimum requirement, but a bachelor’s degree is recommended.
| Criteria | Details |
| Educational Qualification | A relevant bachelor’s degree. |
| Work Experience Requirement | Minimum of 2 years in areas like risk modeling, risk analysis, risk management, or related fields. |
| Waiver Policy | A master’s degree in a relevant area can reduce the work experience requirement to 1 year. |
FRM Syllabus
The FRM syllabus is divided into two parts, covering essential aspects of risk management and financial markets.
| Part | Topics | Weight (in %) |
| Part 1 | Foundations of Risk Management | 20 |
| Quantitative Analysis | 20 | |
| Financial Markets and Products | 30 | |
| Valuation and Risk Models | 30 | |
| Part 2 | Market Risk Measurement and Management | 20 |
| Credit Risk Measurement and Management | 20 | |
| Operational Risk and Resiliency | 20 | |
| Liquidity and Treasury Risk | 15 | |
| Risk Management and Investment Management | 15 | |
| Current Issues in Financial Markets | 10 |
FRM Scholarship Scheme
GARP offers scholarships to financially challenged candidates to enable them to sit for the FRM certification. These scholarships are also available for full-time students seeking to earn full-time degree programs and low-income professionals. It tries to make the certification accessible by offering coverage of enrollment fees and exam fee reductions.
The application shall include proof of academic enrollment and financial hardship. This opportunity helps passionate financial risk management students who often suffer from a lack of enough money to achieve their goals in this career.
FRM Course Duration
The duration of FRM courses varies based on many factors. The GARP recommends that full-time students have at least 300 hours of study for each Part 1 and Part 2, which equates to approximately 10 months. In the case of working professionals, GARP estimates 400 hours of study for each Part 1 and Part 2 and would approximate about 1-2 years. However, it takes about 1 to 2 years to complete your FRM certification. But to get along with you, let’s come up with some elements that form the duration of the examination.
| Exam Part | Duration | No. Of Questions |
| Part 1 | 4 hours | 100 MCQs |
| Part 2 | 4 hours | 100 MCQs |
Factors Influencing FRM Course Duration
The FRM duration varies depending on several factors. Therefore, the candidates must remind themselves that the journey is unique and incomparable to other aspirants. Some of the factors that considerably influence FRM course duration include the following:
- Educational Background and Work Experience: If you have prior knowledge and relevant work experience in finance, risk management, or quantitative disciplines, the FRM course material will seem somewhat familiar to you, thereby decreasing the FRM course duration.
- Availability of Study Time: Another factor that profoundly influences the FRM course duration is time and how much it is available for you. A full-time student or professional with a flexible schedule can dedicate more time to studying than one with more stressful work hours or personal commitments.
- Preparation Strategy: No doubt, for any qualification, if approached with a structured study plan and appropriate study materials, the overall duration is impacted significantly.
FRM Career Scope: Job Profiles and Salary
FRM certifications open doors to very lucrative professional career opportunities in financial risk management. The professionals with this professional certification are always in demand for Risk Manager, Financial Analyst, and Treasury Manager roles. Industry-standard salaries for professionals in FRM India also start to reflect the growing demand for the value of expertise in managing financial risks.
| Job Profiles for FRM Holders | Average Salary in India (₹ LPA) |
| Risk Manager | ₹15–20 LPA |
| Financial Analyst | ₹10–15 LPA |
| Credit Risk Analyst | ₹12–18 LPA |
| Treasury Manager | ₹18–25 LPA |
| Portfolio Manager | ₹20–30 LPA |
FRM Admission
The FRM admission process is pretty simple and can be done online.
- Register on the GARP website.
- Fill in your email and personal information to create an account.
- Pay the one-time enrollment fee. Ensure payment through the accepted online methods.
- Register for Part 1 of the exam. Select this step to start your FRM journey officially.
- Choose the venue and date for the examination. Choose a convenient venue and date based on availability.
FRM Exam Pattern
The FRM course pattern must be understood for the FRM course duration because it will help you prepare an effective studying strategy and time allocation per topic. The FRM course exam is conducted thrice a year in May, August, and November for both parts. The FRM exam is divided into two parts, each with multiple-choice questions.
| Exam Part | Duration | No. of Questions |
| Part 1 | 4 Hours | 100 |
| Part 2 | 4 Hours | 80 |
FRM Exam Passing Criteria
Passing the FRM exam depends mainly on outperforming many worldwide participants. GARP does not indicate the passing score, but candidates have a pass/fail decision against a fixed benchmark. In this way, the examination ensures fairness and consistency in assessing knowledge and skills in financial risk management.
GARP posts the candidate’s results via email. Assessment with transparency helps candidates to know where they stand. Proper preparation and concentration will increase the chances of passing this highly regarded certification test.
FRM FAQs
1. What is the full form of FRM?
FRM full form is Financial Risk Manager.
2. What are the FRM course details?
The FRM course includes two exam parts: topics on risk management, quantitative analysis, and financial markets, along with two years of work experience.
3. What is the average FRM salary in India?
The average FRM salary in India varies from ₹9 LPA for entry-level roles to ₹40 LPA for senior positions.
4. How many attempts are allowed in FRM examinations?
There is no limit to attempts, but candidates must pass both exams in 4 years.
5. Is FRM better than CFA?
Both certifications have their benefits, but your decision should be based on your comfort with the subject matter and personal interests. CFA charterholders work for corporate businesses to analyze security markets and trends. FRMs, on the other hand, work chiefly in risk analysis.
