Financial Risk Management (FRM) Exam + Certification

Information Last Verified: September 20, 2021 by Jordan Fabel

Entering the field of financial risk management means you’ll likely need to take the right exam and get the correct certification. Financial Risk Manager is a professional title given by the Global Association of Risk Professionals or GARP.

Those becoming FRMs provide the necessary knowledge to assess risk and they often work for banks, accounting firms, regulatory agencies, asset management firms, and insurance companies.

You must pass a two-part exam to start your journey towards becoming a Financial Risk Manager. It’s also necessary to complete two years of work experience before this designation will be given out.

Before you decide to go down this career path, it’s important to understand what the FRM Exam and Certification will include. Let’s look at the basics of the exam and what’s necessary if you want to become a Financial Risk Manager.

Steps to Becoming a Certified FRM

If you want to become a certified FRM, you will need to follow these steps:

These steps outline the entire process to become an FRM. The exam is the hardest part.

An Overview of the FRM Exam

The Financial Risk Management Exam covers several topics you will want to study. It’s a collective knowledge test, so everything on part one of the test will be necessary for part two.

A total of 180 questions are found on the FRM Exam with 100 questions on part one and 80 questions on part two. Once you’ve passed part one of the exam, GARP gives you up to four years to pass part two.

Both parts of the FRM exam will be offered twice per year. They are offered on the third Saturday of May and the third Saturday of November.

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Part 1 of the FRM Exam

You will be given four hours to complete part one of the FRM Exam. This section of the exam will cover:

Part one of the FRM exam will cover the tools used to assess financial risk.

You must pass part one of the FRM exam before you can take part two. GARP does allow you to take both part one and part two on the same day, but you still have to pass part one first before part two will be graded.

It’s more common for FRM exam takers to take part one and part two on separate days.

Part 2 of the FRM Exam

Even though the second part of the exam is shorter, you still have four hours to complete the exam. Part two of the FRM exam will cover:

This part of the exam covers the application of the tools used in financial risk management.

5 Quick Tips for Passing the Financial Risk Management Exam

1. Learn the FRM Exam Topics

The information above gives you a blueprint to create a good study plan for the FRM Exam. It’s important to understand the topics covered on the FRM Exam. Study every single topic listed above and make sure you know at least a little bit about all of the concepts included with each topic.

Understanding the concepts will help you pass the FRM Exam. Many of the questions may be able to be answered by using a calculation or a formula. However, if you understand the right concept or the relationship you’re being tested on, you may not need a formula or calculation to come to the correct answer.

2. Start Studying Immediately

The test is only held twice per year, but you don’t want to wait until the last minute to study. It’s recommended you study for at least 200 hours to prepare for the FRM Exam. Trying to cram 200 hours of studying into a few weeks before the exam isn’t a good idea.

3. Create a Study Plan

You should create a study plan including practice questions and practice exams. An FRM prep course or package can be helpful to give you the structure you need. Bionic Turtle offers a structured study planner, instructional videos, interactive quizzes, and many other tools to make studying for the FRM Exam easy.

4. Practice Extra in the Final Weeks Before the Exam

The last two weeks before test day should be filled with FRM practice exams. The more you can practice, the more confidence you will have, and the less you will suffer from test anxiety. Make sure you have several practice exams lined up to take the last few weeks before exam day.

5. Create a Plan to Stay Calm on Exam Day

You get a total of four hours to take the exam. No points are awarded for finishing early. Make sure you have a plan to stay calm and use your time wisely on exam day.

On exam day, make sure to reread any questions giving you trouble. If they are still giving you trouble, move on and come back to them later. It’s better to guess if you really don’t know the answer than leaving a question unanswered.

Increase Your Likelihood of Passing the FRM Exam

One of the best options to help you prepare for the FRM Exam is Bionic Turtle. With more than 4,100 practice questions, great study tips, and a full forum, Bionic Turtle offers a great tool to prepare and pass the FRM Exam.

Choosing a good FRM exam prep course goes a long way to helping you pass the exam. Only 45.9% of those taking part one of the FRM Exam pass it on the first time around. The second part has a higher rate of success with 58.6% passing the exam.

FRM Exam Prep
Bionic Turtle

With more than 4,100 practice questions, great study tips, and a full forum, Bionic Turtle offers a great tool to prepare and pass the FRM Exam.

Start Your FRM Prep Now!
We may earn a small commission if you use this link at no additional cost to you.

With Bionic Turtle, you gain the tools you need. Those using Bionic Turtle to prepare for the FRM Exam have a 73% pass rate. That’s much higher than the average provided by GARP.

If you’re ready to enter the world of Financial Risk Management and you want to become certified, the FRM Exam is where you will need to start. Schedule your exam and start studying with Bionic Turtle to ensure you have a better chance of passing the first time around.

Jordan Fabel

Jordan Fabel

Covering different 'paths' that people's lives can take. Creative, foster parent, ticket dismissal, you get the idea. Exploring the requirements, certifications, exams, and obviously, approved courses along each path. I, personally, am the high school dropout son of two teacher parents. So how did I get here? That story takes more time. Coming soon!