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Financial Risk Manager (FRM)

The Financial Risk Manager (FRM) is the certification recognized among financial risk professionals worldwide, with 17,673 FRMs in 90 countries across the globe.
 
Financial risk management is one of the hottest skill sets to have in the financial services industry today that offers excellent visibility and outstanding earnings potential. The profession has seen considerable growth over the past 15 years fueled by the complexity of financial products, increased regulation and recent notable failures. 
 
Certification Summary
Examination Papers & Topics
  • Until November 21, 2009; FRM examination candidates will be required to set for only one paper to finish the examination.
  • Beginning in 2010, the FRM Exam will be offered in two levels Level I FRM Exam & Level II FRM Exam will be offered simultaneously each May and November, respectively.
  • In November 21, 2009; candidates can also sit for FRM level I if they wish, as it will be offered in the same period.
 
Level I FRM Exam will cover the below listed topics:
  • Foundations of Risk Management
  • Quantitative Analysis
  • Financial Markets and Products
  • Risk Modeling
Level II FRM Exam will cover the below listed topics:
  • Market risk measurement and management
  • Credit risk measurement and management
  • Operational and integrated risk measurement and management
  • Risk management and investment management
  • Current issues in financial markets
 
The FRM Exam Full will cover all of the topics listed above
Examination Style
  • The FRM Exam Full will have 140 multiple-choice questions.  The morning and afternoon sessions will be 2.5 hours each with a 90 minute break in between.
  • FRM Exam Level I will have 100 multiple-choice questions and FRM Exam Level II will have 80 multiple-choice questions.
  • Both Levels will be 4 hours in length and broken down as follows:  2 hours for the morning session and 2 hours for the afternoon session with a 90 minute break in between.
 
Examination Passing Score
The FRM Exam Levels I and II examinations will not be graded any differently than the FRM Exam Full.  Candidates will not be provided individual Exam scores, the results will be communicated only as pass/fail.  The passing scores will still be determined based on a ratio of the absolute score to the average of the top 5% of candidate test results.  No penalty is assessed for a wrong answer.
Examination & Results Dates
On November 21, 2009, the entire FRM exam (FRM Exam Full) and Level I of the newly designed FRM exam (FRM Exam Level I) will be offered at the same time.  This will be the last opportunity for candidates to take the entire FRM Exam in one sitting.  Beginning in 2010, the FRM Exam Level I and FRM Exam Level II will be offered simultaneously each May and November, respectively.
Examination Mode Paper-based
Areas of Specialization
  • Risk Management
Professional Body Global Association of Risk Professionals
Location of Incorporation United States