FRM is simply an acronym for Financial Risk Manager and is a designation offered by the Global Association of Risk Professionals. It is certification for risk managers who can essentially identify potential risks and mitigate the same in the financial sector for a client. The designation is an international validation if the skills of a risk manager and makes it easy for firms and banks to identify the best candidates for such roles.
The FRM certification can be earned by clearing two tests- Part I and II of the FRM Exam. Although there are no perquisites in terms of educational qualification to earn the certification or appear for the exam, one needs to demonstrate at least 2 years of full time work experience in the financial risk management field after passing both the exams in finance related work portfolios.
Take it as simply understanding the theory and the practical. While FRM I is focused on theoretical aspects of financial risk management, including the assessment of the ability to identify the tools involved in the process, the part II of the exam focuses on the practical application of these tools in a simulated case or something similar. Hence Part I- Tools and Part II is application of the tools.
The FRM certification examination are conducted twice a year—once in May and again in November, with a uniform six month gap for the aspirants to have ample time to study and give the preparation their best shot.
Both the papers are MCQs or multiple choice questions, four hours in length. While part I has 100 questions, you get 80 questions for Part II of the exam.
The FRM exam prep is lengthy and tough and one needs to spend an average of 200-240 hours in FRM prep. Since the FRm exam not only requires a test taker to read and answer a question but to also effectively apply concepts, practice is the way to go.
Finding someone to spend the time with you to prepare for the same is equally important. FRM test prep requires effective understanding of concepts and their subsequent application, and discussing them can be effective in test prep. To find study group or a partner near you, you should use studypal.co!
The cost to write the FRM exam depends on when you register, so make the choice early so that you can save up on the costs. Enrollment fee, a one-time charge, is $400. Additionally, there are individual exam registration fees which are $350 for early birds, $475 for standard and $675 for late entries.
Can I get my work experience after the FRM exam?
Yes, absolutely! The FRM exam does have work experience as a prerequisite and one can choose to acquire the work experience post the exam. For the two years of work, the candidate is referred to as a FRM Holder and only after two years of full time work experience, they are given the tag of ‘FRM certified.’
What if I fail the FRM exam?
If you fail FRM Part I, there are no worries as you can retake it again. But if you pass Part I and fail Part II, make sure you pass the second paper within a span of 4 years or you have to re-enroll yourself in the FRM exam system.
Can I defer my FRM exam?
You can only defer it till registration is open. One can register for FRM as an early bird but then decide against appearing till the last date of registration at a fee of $100. Remember, this can be exercised only once.
FRM is a pen and paper based test and the candidates need to follow strict instructions to avoid disqualification. One must carry government issued passport or driving license for identification purposes to the test centre. Although calculators are allowed, there is a strict restriction on the varieties that can be used. Additionally, no mobile phones are allowed inside the hall. Remember to carry a PRINTED VERSION of your admission ticket too.