The FRM pass rate is one of the factors that any aspiring financial risk manager should look at while preparing for this globally recognized certification. The FRM exam is split into two parts, and the pass rates are generally between 40% and 60%. This article outlines the FRM pass rate, its syllabus, the best books for preparation, and why the pass rates remain low. Knowledge in these aspects may help one plan strategically and increase chances of success. Pass rates on the FRM can be very tough, yet highlight the importance and value this will add to your career as a financial professional.
FRM Pass Rate
The FRM pass rate is the percentage of participants who pass the Financial Risk Manager exam conducted by the Global Association of Risk Professionals (GARP). Typically, for part 1, the pass rate is around 40%-55%, and in part 2, it usually falls between 50%-60%. It indicates how hard the exam is, underlining the necessity of concentrated preparation and apt use of available resources.
FRM Part 1 Pass Rate
The FRM Part 1 Pass rate is lower than that for Part 2, at approximately 45%, which indicates the difficulty level of subjects such as quantitative analysis and risk modelling. At the same time, many first-timers find it difficult as the syllabus is enormous, along with inadequate practice. Since 2014, pass rates have remained in the 41%-50% range, except in May/August 2024, which hit a high of 56%, the best since 2010.
| FRM Part I Exam | FRM Pass Rate |
| November 2024 FRM Part I Exam | 55% pass rate |
| August 2024 FRM Part I Exam | 56% pass rate |
| May 2024 FRM Part I Exam | 56% pass rate |
| November 2023 FRM Part I Exam | 45% pass rate |
| August 2023 FRM Part I Exam | 47% pass rate |
| May 2023 FRM Part I Exam | 47% pass rate |
| November 2022 FRM Part I Exam | 50% pass rate |
| August 2022 FRM Part I Exam | 51% pass rate |
| May 2022 FRM Part I Exam | 51% pass rate |
| November 2021 FRM Part I Exam | 45% pass rate |
| May 2021 FRM Part I Exam | 47% pass rate |
| November 2020 FRM Part I Exam | 45% pass rate |
| October 2020 FRM Part I Exam | 44% pass rate |
FRM Part 2 Pass Rate
The FRM Part 2 pass rate has been between 50% and 60% because the candidates are very well aware of GARP’s exam pattern and content. Practically, part 2 is application-based; hence, it requires very deep conceptual clarity. The pass rate has been above 50% for the last 14 years. The pass rate was the lowest in May 2016 at 50%. It is 52% in May/August 2024 at the latest.
| FRM Part II Exam | FRM Pass Rate |
| November 2024 FRM Part II Exam | 52% pass rate |
| August 2024 FRM Part II Exam | 52% pass rate |
| May 2024 FRM Part II Exam | 52% pass rate |
| November 2023 FRM Part II Exam | 53% pass rate |
| August 2023 FRM Part II Exam | 51% pass rate |
| May 2023 FRM Part II Exam | 51% pass rate |
| November 2022 Part II Exam | 59% pass rate |
| August 2022 FRM Part II Exam | 57% pass rate |
| May 2022 FRM Part II Exam | 57% pass rate |
| November 2021 FRM Part II Exam | 63% pass rate |
| May 2021 FRM Part II Exam | 59% pass rate |
| November 2020 FRM Part II Exam | 59% pass rate |
| October 2020 FRM Part II Exam | 62% pass rate |
FRM Syllabus
The FRM syllabus tests the candidate on understanding risk management concepts and their actual applications. Part I has four topics with 100 multiple-choice questions. Similarly, Part II has six topics, along with 80 multiple-choice questions.
| FRM Part | FRM Part I Exam Topic | Exam Weight |
| 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 Resilience | 20% | |
| Liquidity and Treasury Risk Measurement and Management | 15% | |
| Risk Management and Investment Management | 15% | |
| Current Issues in Financial Markets | 10% |
Best Books for FRM
Choosing the right study material is critical for mastering the FRM syllabus. Here are some of the best books for FRM preparation:
| FRM Part | Recommended Books | Key Features |
| FRM Part 1 | GARP’s Official Study Materials | Comprehensive and aligned with the FRM curriculum, it includes practice questions and exam-like scenarios. |
| Schweser Notes for FRM | Concise and easy-to-understand summaries, ideal for last-minute revisions. | |
| John Hull’s Options, Futures, and Other Derivatives | Detailed focus on derivatives and financial instruments. | |
| FRM Part 2 | GARP’s Official Study Materials | Covers all aspects of Part 2 with emphasis on current issues. |
| PRM Handbook by Philippe Jorion | Provides detailed insights into risk measurement and management. | |
| Wiley FRM Exam Review | Offers chapter-wise questions and detailed explanations. |
FRM Difficulty
The FRM exam is among the most complex financial certifications; there is a low pass rate. The syllabus is very extensive, taking on many topics that necessitate getting deep into details. The examination has an analytical question that tests how well one can apply knowledge rather than mugging it down.
Managing time would also be challenging since both parts of the exam last four hours, with 100 questions in Part 1 and 80 in Part 2. The content changes to reflect financial market updates, making the exam more complex and demanding.
FRM Study Tips: Overcome Difficulty
Preparing for FRM requires an intelligent approach to the exam coupled with effective strategies. The following key tips will help one improve his/her chances of succeeding and tackling the FRM exam challenges fearlessly.
- Practice taking mock tests to familiarise yourself with the exam format and time management while preparing.
- Understand concepts deeply rather than relying on shortcuts for better clarity.
- Follow a disciplined schedule of study plans, set realistic deadlines, and consistent efforts.
- Use all resources such as books, video lectures, and practice tests for all-round preparation.
- Analyze previous year’s questions for trends and high-priority topics.
- Study groups or forums may be joined to clarify doubts, share resources, and keep motivated.
FRM Pass Rate FAQs
1. What is the FRM Part 1 pass rate?
The FRM Part 1 pass rate generally falls between 40% and 50%. This is because the exam is very tough and requires preparation from all corners.
2. What is the FRM Part 2 pass rate?
The FRM Part 2 pass rate is a little higher, that is, between 50% to 60% as the candidate is aware of the pattern by now.
3. Why is the FRM exam considered challenging?
The FRM exam is challenging because it has a broad syllabus, analytical questions, and dynamic content, which has changed with the financial industry.
4. Which books are good for FRM preparation?
The best books for FRM are GARP’s official study materials, Schweser Notes, and John Hull’s “Options, Futures, and Other Derivatives.”
5. How can I increase my possibility of clearing the FRM exam?
To increase your chances, create a structured study plan, practice mock tests, focus on conceptual understanding, and use high-quality resources.
