FRM Exam Overview, Registration Guide, and Deadlines

FRM exam

FRM Exam Overview

To become a Certified FRM, candidates must pass the very difficult Financial Risk Management (FRM) exam. Candidates also have to complete two years of work experience. We put together this helpful FRM Exam Overview to help you understand the process.

  • The FRM tests collective knowledge, and everything that is tested on Part I of the exam is necessary for Part II.
  • After successfully passing Part I of the Exam, GARP allows 4 years for candidates to pass Part 2.
  • In order to become FRM certified, GARP allows five years for candidates to complete their work experience requirement after they have passed both parts of the exam.

GARP updates the FRM Curriculum each year in order to reflect the most up-to-date trends in the financial markets.

The annual update is not well understood by all candidates. For example, the FRM Exam updates more aggressively than the CFA. This has important implications: the exam is less predictable; formula and memorization are less reliable (because old questions are less likely to repeat), and the assigned syllabus (including the Learning Objectives) does not necessarily contain exact and literal pointers to exam questions.

The Two Parts of the FRM Exam

Both FRM Exams are offered via computer-based testing (CBT) in May and November. Scheduling is available on a first-come, first-serve basis.

  • Part I of the Exam consists of 100 equally weighted multiple-choice questions. Part II of the Exam consists of 80 equally weighted multiple-choice questions.
  • GARP allows four hours for candidates to complete Part I of the Exam and four hours to complete Part II of the exam.
  • FRM Exam candidates must pass Part I before they can take Part II. GARP allows candidates to sit for both Part I and Part II on the same day, however, they must pass Part I before their Part II exam will be graded.
  • Most FRM Exam candidates choose to take Part I and Part II on separate exam days.

Part I – Tools Used to Assess Financial Risk

  • Foundations of Risk Management
  • Quantitative analysis
  • Financial markets and products
  • Valuation and risk models

Part 2 – Application of the Tools

  • Market risk management & measurement
  • Credit risk management & measurement
  • Operational and integrated risk management; including the Basel regulatory framework
  • Liquidity and Treasury Risk measurement & management
  • Investment risk management
  • Current Issues

Exam Registration and Deferrals

Exam Dates

Finding an Exam Site

Due to COVID-19 and the increased distancing between candidates, exam sites may have less availability at this time. The status of sites is subject to change and capacity may increase.

Exams are reserved on a first-come, first-served basis. Candidates can view exam sites in their area by visiting the websites of our two exam providers, ATA and PSI. Candidates in China, Hong Kong, and Thailand can only schedule with ATA, while the rest of the world can only schedule with PSI.

Registration and Fees

Candidates can register for the FRM Exam on the GARP website (www.garp.org).

  • In order for your exam registration to be considered complete, payment must have been received by GARP by midnight, EDT, on the closing date of each registration period.
  • The first time, FRM candidates pay a program enrollment fee and an exam fee. The enrollment fee covers the costs that are associated with developing the FRM Program and providing the FRM Exam. All candidates must pay the enrollment fee when they register for the FRM Program for the first time.
  • Candidates have 48 hours after their exam registration to submit a refund request. All refund requests must be received via email to [email protected]

Exam Deferral

FRM Part I and FRM Part II candidates may defer their exam registration only once to the next available exam administration. There is a USD 200 fee to defer.
A deferral to the next exam administration must be submitted and paid by the below deferral deadlines:

  • May — March 31
  • November — September 30

As a deferred candidate you will be required to log in and schedule an exam appointment.

Scheduling Policy

Candidates are required to select their exam location and schedule their appointments on or before the deadline. Should a candidate decide they need to reschedule, he/she can do so only once to another date/time in the same exam window. GARP will not allow any additional reschedules under any circumstance.

Candidates who fail to schedule their Exam and/or fail to appear at their exam appointment will forfeit their exam fee.

GARP’s Identification Policy

To gain admission to the exam site on exam day, candidates must present two items:

1. A government-issued passport or driver’s license.

  • The passport or driver’s license must be an original, valid, and non-expired.
  • The passport or driver’s license must include a photograph.
  • The driver’s license must be issued by the location in which the Exam site is located.

2. A printed Confirmation of Appointment Email

  • GARP will neither accept nor allow admittance to the Exam with an electronic version of the Confirmation Email.
  • The name on the Confirmation of Appointment Email must match exactly the name on the candidate’s passport or driver’s license that is presented on exam day. This includes an exact match of the first name, last name, and any middle name or initial. The order of the names is irrelevant so long as all names appear.

There are NO exceptions to GARP’s Identification Policy, regardless of what form of identification a candidate may have used in past exam administrations.

If a candidate arrives on exam day without an original, valid, non-expired, government-issued passport or driver’s license, and/or the printed Confirmation of Appointment Email, they will not be allowed to sit for the Exam or reschedule their Exam, and they will be forced to forfeit their exam fee(s).

Exam Results

The FRM Exam is marked as pass/fail. GARP releases the results through email around six weeks after the FRM Exam is given. GARP provides the FRM Exam candidates with quartile results so they are able to see how they scored on specific areas of the exam in relation to other candidates.

  • The passing score cannot be known in advance: GARP grades on a curve.
  • Here is their specific method: Let (T) be the average of the Top 5% of all exam scores. After analysis, GARP calibrates an overall passing multiplier; for example, 70%*T = passing score. Due to this method, it is impossible to know the passing score before the exam. However, historical experience suggests that you can miss several questions and still pass the exam. Put another way, the exam is known to be difficult; very few candidates exit the exam having confidently answered all of the questions.

View our Pass Rates comparison chart here: https://www.bionicturtle.com/pass-rate-information/.

In addition to this FRM Exam Overview, take a look at our other informational pages: