The time duration of the FRM course is one such aspect that the candidates look at while deciding whether or not to pursue the Financial Risk Manager (FRM) qualification. FRM, administered by the Global Association of Risk Professionals (GARP), is well-known and highly respected within the finance and risk management fields. It enables the professional to identify, calculate, and control financial risks in credit, market, and operation.
The time spent to complete the FRM program is based on the preparation strategy adopted, the number of hours spent studying, and the ability to pass both parts of the exam. Thereby, it takes an average of 6–9 months for candidates to prepare for every part, and thereby the average standard course length takes about 1–1.5 years. However, such variables include exam dates, acquaintance with the syllabus, and methods of preparation, among others. This article gives you detailed insights into the FRM course duration, its structure, exam format, and preparation strategies to help you succeed.
What is FRM?
FRM full form is Financial Risk Manager. It is a course by the Global Association of Risk Professionals. GARP, as an institution, has an outstanding reputation within the finance and banking industries. This course mainly targets developing skills related to risk management. Topics in this course range from credit risk and market risk to operational risk and investment management. The two parts to this FRM certification are
- FRM Part 1: It includes basic concepts like quantitative analysis, risk models, and financial markets.
- FRM Part 2: Advanced topics include market risk management, credit risk management, and liquidity risks.
The FRM certification opens the doors to high-paying jobs in top financial institutions. It is a tough exam, but proper coaching can clear the exam for candidates and help them gain an edge in their careers.
FRM Course Duration: Important Factors
The FRM course duration depends on various factors that determine how much time a candidate needs to complete the certification. The FRM program offered by the Global Association of Risk Professionals, GARP, is quite rigorous and requires a strategic approach to preparation. On average, candidates spend 6–9 months preparing for each part, but this timeline varies based on individual circumstances. Factors that go into determining duration include study habits, prior knowledge, preparation resources, and exam schedules.
Knowledge of these factors helps any candidate to map out their prep in a sound manner and with realistic timelines to cover the FRM course.
1. Study Hours Required
Dedicated time spent studying for the FRM course is also a significant factor in how long it would take to prepare for the program.
- Average Study Time: GARP suggests that candidates take 300-400 hours of study time for each part, which would then be sufficient in preparing for the exams. Such time would incorporate learning concepts, solving practice questions, and mock examinations.
- Commitment for one week: Assuming the candidate will prepare 12 to 15 hours per week he should be ready with the desired amount in 6 to 9 months. People working and tied up elsewhere usually need up to one or two years or more, for each book part.
- Consistency: It is among the biggest needs when preparing for FRM. Those people, who have fixed hours of structured study plans both daily and weekly, would finish their courses faster than those who do not.
2. Background Knowledge
The time required to complete the course will depend entirely upon how much the candidate is familiar with the FRM syllabus.
- Finance Professionals: For people with experience in finance, accounting, or quantitative analysis, it will become relatively easier as the topics will not be entirely new. For instance, risk modeling or financial markets fall under their professional knowledge. Normally, they do not take long and finish the FRM course in 12–18 months.
- First-time Risk Management candidates: Preparation time 9-12 months for every paper because without a basic finance background, it may take more time to understand concepts in core subjects like quantum analysis and risk modeling. More hours of study are needed to understand the basics.
Candidates need to judge their knowledge of the syllabus and spend the required amount of time to bridge the gaps before sitting for the exams.
3. Exam Time Timings
FRM is conducted by GARP twice a year, that is during May and November. This enables candidates to chart out a certification process.
- Both parts in one year: One can attempt Part 1 in May and Part 2 in November within a calendar year. This pattern is recommended for a candidate who can afford sufficient time to prepare and has good knowledge of the subject matter.
- Staggered Method: Candidates often want to do one section a year. Take this example: they will study, for instance, and take Part 1 in May, then the following year Part 2 in May or November. It could therefore be called a more relaxed way but the whole period of the course will approximately take 1.5 to 2 years.
- Proper scheduling of the exams: This can decrease the duration of the FRM course and still leave adequate preparation time. Candidates have to plan their exam dates wisely, based on their readiness and availability.
4. Mode of Learning
The time also depends upon the mode of preparation of the FRM course.
- Self-Study: Unlike professional coaching, a candidate taking up self-study will require more time since he will have to find suitable material and a study plan.
- This method requires self-study. Students need to dedicate a daily time frame to study, revise, and practice from sample questions. On average, self-study candidates will take 9–12 months for each part of the syllabus.
- Coaching Institutes: Coaching institutes facilitate easy preparation for the students through a scheduled schedule, coaching by the teachers, and high-quality study materials.
- With coaching, preparation for each part usually takes 6-9 months as every session is targeted towards important topics, as well as, clarifies complex ideas.
- Mock tests and doubt-clearing sessions save time and improve understanding, thereby creating faster progress for the candidate.
- Learning mode depends upon your preferences, schedule, and your ability to remain consistent in preparation.
5. Study in Reality
Candidates pursuing FRM should lay down the study plan suitable for the desired objectives and available time. These are a few considerations.
- Analyze Your Time Availability: Plan your schedule, whether you have less than one hour per week, so many hours each day, etc.
- Break Up Syllabus: Divided topics may be made up of targets by week or by month, helping in monitoring self’s work.k
- Practice every week: Build into the habit of attempting questions, and continue with mock tests weekly.
- Monitor Progress: Keep a constant check on your progress and accordingly change your plan.
- Follow Schedule Consistently: Follow your schedule and avoid any long gaps between sessions.ns
Understanding these determining factors of the FRM course duration and planning before time can help candidates achieve the certification within the set period.
GARP’s 5-Year Rule
The Global Association of Risk Professionals (GARP) has set a clock rule to keep the candidates within reasonable time frames so that the candidates get adequate time to cover FRM certification. Such a term applied to this is known as a 5-year rule. Its clock begins as soon as any candidate applies for FRM Part 1 exams. A candidate is allowed the opportunity to pass five years from Part 1 up to the Part 2 exams of FRM.
Failure to meet the timeline would cause one to reassess and re-register for the certification. This implies going back to Part 1 of the process. It also informs one on the lesson in the value of holding the course and meeting your timeline while preparing.
What is GARP’s 5-Year Rule?
The 5-Year Rule is one of the guiding rules for the FRM candidate. This will help maintain commitment and keep current with current principles in financial risk management.
- Clock On: The five years start on the date you join for FRM Part 1. Once joined, you must clear both parts, that is, Part 1 and Part 2 within five years
- Implications for Part 2: After clearing Part 1, candidates must clear Part 2 within the remaining time frame of five years. For example, if you take 2 years to clear Part 1, you will have only 3 years left to clear Part 2.
- Re-Registration Requirements: If you fail to pass both parts within 5 years, you have to re-register for the FRM certification. Re-registration means starting from Part 1 and paying the registration fees again. This rule makes the knowledge evaluated in the FRM exams relevant and up-to-date because of the rapid pace of change in the financial risk management domain.
- Implications of Time Limit: Knowledge of the 5-year rule and adherence to it are important to any FRM candidate. Time constraint breeds consistency. The time limit will not allow candidates to procrastinate without unwarranted prolongation. In the worst-case scenario, one may run out of time, which means the necessity to retake the whole process of becoming a certified FRM professional. Completion of the course within 5 years ensures that the knowledge of risk management is current. Financial regulations, market dynamics, and risk methodologies change very fast, and candidates need to be updated.
- Financial Implications: Failure to complete the course within 5 years results in re-registration, which involves additional costs. Candidates must pay the registration and exam fees again, increasing the financial burden. Candidates will maintain their focus and success in preparing to not fall prey to the trap of the 5-year rule when attaining the FRM promptly.
Approximate Time Required to Achieve the FRM Certification
The time required to complete the FRM certification will depend upon the strategy selected for the preparation, study habits, and the time selected to sit for the examination. Most of the students take around 1-1.5 years for the course completion. This is considering that one is passed in both parts in the first attempt.
General Time to Complete
- Preparation for FRM Part 1: The candidates take around 6–9 months to prepare for Part 1. It is a pre-study period to get foundational knowledge in quantitative analysis, risk models, and the basics of financial markets.
- FRM Part 2 Preparation: For Part 2, the study material is concepts related to advanced risk management. The preparation time is also 6–9 months. Credit risk, market risk, and operational risk management are covered in the study.
- Registration and Exam Gaps: A candidate usually requires a 1-2 month time gap between the registration for the exam date and the actual date of the exam for completion of all preparations.
- Time Consumed Overall: Adding all prep times, and the gaps in the exams; an average student would take about 1-1.5 years to complete the FRM program.
- Aggressive Schedule: The extremely motivated student who has more time spent on it can be done in a 12-month cycle.
Schedule to Finish FRM in One Year
January Start studying. Do Part 1 for 4–5 months. Take the exam in May. Part 2 in November: A month after Part 1 hits the stands, spend the next 5–6 months doing Part 2. Take the exam in November.
- Who is Suited for this Approach?
Accelerated stream is more for candidates who already have some exposure to their backs regarding finance or quant analysis. Candidates should have the caliber to study strictly and commit 15–20 hours per week for this pattern. It is tough but a course in one calendar year is very demanding but candidates can advance in their careers pretty fast.
Summary of Estimated FRM Completion Times
The following table summarizes the estimated time required to complete the FRM course:
| Stage | Time Required |
| Preparation for FRM Part 1 | 6–9 months |
| Preparation for FRM Part 2 | 6–9 months |
| Registration and Gaps | 1–2 months |
| Total Duration | 1–1.5 years |
Some Tips on How to Manage the Effect of the 5-Year Rule
If you want to sit for the FRM within 5 years, then use the following strategy:
Schedule your prep schedule such that you attempt both parts within 1–1.5 years.
- Be Consistent: Spend a few hours per week in review. Steer clear of long breaks that will knock you off your game.
- Maximize Your Exam Windows: Utilize GARP’s bi-annual exam calendar to your best advantage. Sit for Part 1 in May and Part 2 in November to finish the program in one year.
- Use coaching institutes: as an option for making your review process more systematic and saving precious time.
- Keep Track of Your Progress: Regularly review your understanding of the topics and address weaknesses early.
FRM Course Duration FAQs
How long will the FRM course take?
On average, if you pass both parts in one sitting, then the FRM course would generally take around 1 to 1.5 years.
How many study hours per FRM part should I prepare for?
I would estimate to prepare around 300-400 study hours per part.
Can I complete both parts within one year?
Yes, you can take Part 1 in May and Part 2 in November to complete the course in 12 months with proper preparation.
What happens if I exceed GARP’s 5-year limit?
If you exceed the 5-year time limit, you need to re-register and start the certification process again from scratch, which includes Part 1.
Which factors affect the FRM course duration?
Study hours, examination schedules, prior knowledge, and preparation strategies determine how long it will take to complete the FRM program.
