Updated October 18, 2023
What are FRM FAQs?
Isn’t it weird when your Friend’s Mother calls you? It is a moment when you start sweating, and you can’t decide whether to answer her call. You start thinking of all the possible ways your friend must have messed up, and you begin building which lie you can tell her this time. Such an incident happened to me a few days back.
Today, I will tell you such a weird story about my friend and the reason behind writing this article. My friend, Matt, will appear in the coming FRM exams and is full of anxiety.
But I happened to notice this general anxiety in him. You will know his weird habit when you read the article and see his images.
I wrote this article to help Matt relax before his Final FRM exam. He has considered the exam site, exam hours, and study material. So I could write this article based on FRM FAQs, which will answer all his queries. Also, Matt’s mother had called me, and for the first time, I did not have to come up with something to save Matt, but I had to help her. So, if you want to know what bothered her, read the article and see the conclusion. But you will get the answer once you see the images below. So, let’s go through some general FRM FAQs and the solutions.
General FRM FAQs
The financial industry has seen tremendous changes and developments over the past few years. And that is why individuals who can manage risks and money simultaneously are the need of the hour. So, the Financial Risk Manager designation is perfect if you want to be amongst them. The Global Association of Risk Professionals (GARP) offers the internationally renowned “FRM” designation. It is a qualification for risk-managing professionals analyzing and controlling various risks like credit, market, and liquidity. So, if you plan to take the FRM examinations, you are on the right track.
What is the time duration required for FRM Exam preparation?
Candidates’ preparation times will vary based on their prior experience level, academic record, and understanding of the concepts. Hence, the exam preparation time best depends on individual efforts. Total preparation time can vary between 300 to 400 hours.
What types of institutions is the FRM applicable to?
FRM degree is related to gaining the practical knowledge needed to function effectively as a financial risk manager globally.
What are the career prospects after becoming a Certified FRM?
FRM is the best-known, most widely accepted risk management designation globally. You must know that the demand for financial risk managers has always been strong. But at the same time, your career prospects can vary according to your prior professional experience. Getting an FRM designation will help you differentiate yourself from your peers. It will act as a validation of your knowledge of the tools and techniques of the risk management profession. It is a valued designation by all companies as well as employers all over the world.
You can get employed at.
- Banking institutions
- Government regulating agencies
- Consulting firm
- Financial services institutions
Do you need to have work experience before taking the FRM Exam?
You need two years of professional work experience before taking the FRM examination. But at the same time, there is no educational or professional prerequisite to sit for either Part of the FRM Exam.
What is GARP, and why is GARP qualified to certify risk managers?
The “Global Association of Risk Professionals” (GARP) is the only globally recognized professional association for financial and risk certification and education. GARP has successfully set up the global standard for the risk profession. It was founded in 1996 and is a nonprofit, nonpartisan membership organization of over 150,000 individuals. They develop, design, and administer certification programs that reflect best industry practices.
What is the FRM Pass Rate?
The table below shows the historical pass rate.
On what basis is the Exam score based?
The FRM Committee determines the passing score.
FRM FAQs on Exam Registration Process
Can I register to sit for the FRM Part I and Part II on different dates?
No. You must understand that a candidate can only register for the FRM Part II exam after successfully passing Part I. The other chance is that you must register to sit for both parties on the same day.
Can the FRM Exam Part I and II exams be given on the same day?
Yes, appearing for both exams on the same day is possible. Part I exam will be conducted in the morning, whereas Part II will be in the afternoon.
Is it possible to sit for the ERP and FRM exams on the same day?
A candidate cannot take both Exams on the same day as they are conducted simultaneously.
What are the different types of candidates sitting for the FRM exam?
Different types of candidates sitting for the FRM exam are as follows
- New Candidate
Never registered or sat for the Exam before.
- Returning Candidate
Candidates who have not cleared the earlier Exam and would like to retake it.
- Deferral Candidate
A candidate who has deferred taking the Part I Exam to the next available Exam date wants to register for Part I and II on the same day.
Being a New Candidate for the FRM Exam Part I, can one defer their registration to the next Exam?
Yes. One can always defer your registration until the last day of registration. However, you will need to pay the administrative processing fee. Candidates can wait only once for Part I and once for Part II.
What is GARP, and why is GARP qualified to certify risk managers?
GARP is the “Global Association of Risk Professionals. ” No other professional association for financial and risk certification and education is globally recognized besides GARP. GARP has successfully set up the global standard for the risk profession. It was founded in 1996 and is a nonprofit, nonpartisan membership organization of over 150,000 individuals. They develop, design, and administer certification programs that reflect best industry practices.
How do I Defer the FRM Exam?
For details about the procedure to defer the Exam, you may like to visit the GARP website.
If I defer my Exam test date, is there a time limit on when I need to re-register?
In such a case, there is no need to re-register. The procedure only postpones your Exam test date to the next available Exam test date. Hence, your registration will automatically be made, and a confirmation email will be sent to you. If one defers the May Exam, he will be automatically re-registered to sit for the November exam.
Can one register for the FRM Part II Exam before Part I?
No. You must first complete and pass the FRM Exam Part I to register for the FRM Exam Part II. However, one can sit for FRM Exams, Part I, and Part II, on the same day. But in such a case, you must pass Part I before Part II to be graded.
Enrollment and Registration Fees
What are the fees for the FRM Exams?
The Fee structure is given in detail on the GARP website.
Are the Exam fees refundable?
GARP does not give any refunds, and candidates cannot transfer their registration to another candidate. However, the candidates can defer their FRM Exam to the following exam date by paying a US$100 administrative processing fee for the deferral.
What does the enrollment fee include?
The enrollment fee includes the costs of developing and administering the FRM Program. Also, you are entitled to a complimentary one-year GARP Individual Membership (a US$195 value). You may also like to know in detail about the Individual Membership benefits.
Do I have to pay an enrollment fee for each Part of the FRM Exam?
No. The enrollment fee is for participation in the FRM Program and not for sitting for the individual Exams. Candidates pay this fee when they initially register for the FRM Program. However, if the candidate fails to complete the FRM Program within the required 4-year period after passing Part I, he has to re-enroll in the FRM Program as a New Candidate and pay all applicable fees.
Is the enrollment fee discounted for Individual members of GARP?
No. The enrollment fee covers the basic costs associated with the program. However, once you pay the enrollment fee, the organization will automatically extend your current Individual membership expiration date for one additional year.
Does GARP offer scholarships to FRM candidates?
GARP only offers scholarships to full-time students and university faculty taking the FRM Exam Part I. It is not available for the part II exam.
FRM FAQs on Exam Sites
Where will the FRM Exam Part I and Part II be offered?
The Exam sites conduct both the FRM Exam Part I and Part II. You can visit the GARP website to see the sites while registering for the exams.
Is it possible to change the Exam site?
Yes. The last day to change your Exam site for the May or November Exams is always the last registration day.
Is there a fee for changes in the Exam site?
The change in the Exam site does not incur any fees.
FRM FAQs -Preparing for the Exam
What study materials are available to help prepare for the FRM Exam?
The study material is given in detail.
Are the Study Guides for the Part I and Part II exams separate?
No, there is only one Study Guide. This will include the syllabus, outline, and recommended reading materials for FRM Part I and Part II Exams.
Are the study materials for the Part I and Part II exams separate?
Yes, GARP tailors the study material according to the FRM Exams.
What topics will be covered in the FRM Exam Part I versus the FRM Exam Part II?
The Pie charts below display the topics and their weightage for Part I and Part II FRM exams.
What is the total number of FRM Exam Part I and II questions?
The FRM Part I Exam will have 100 multiple-choice questions, whereas Part II will have 80.
If you are looking for any preparatory course to help you prepare for the FRM exam, you may like to look at the FRM level 1 Course.
FRM FAQs on Sitting for the Exam
What is the exam duration for both Parts?
Each Exam will be 4 hours in duration. The organization will conduct the Part I exam in the morning and Part II in the afternoon.
When will the admission tickets for the FRM Exams be received?
GARP will announce the release date of admission tickets on its website and send you an email with instructions on downloading the key. You must present a paper Admission Ticket to enter the Examination Center.
Can the same admission ticket be used for May and November?
Each exam date requires a new admission ticket.
Are there two admission tickets if someone has registered for Part I and II on the same day?
Yes. There are separate admission tickets for Part I and Part II FRM exams.
What languages can one take the Exam in?
The only language that the Exams are directed to is English.
FRM FAQs on After the Exam
When are the pass/fail results received?
GARP will display all the notifications on its website. We suggest that you check the website for result updates.
If someone sits for the FRM Exam Part I and II on the same day, will they receive one or two pass/fail communications?
If you have passed the Part I Exam, you will receive a communication stating whether you have Passed/failed the Part II Exam. If you have not passed Part I, your II will not be graded. In such a case, you must register again to appear for both parties.
Do I need to register again for the FRM Exam Part II within a certain period after passing Part I successfully?
Yes. Once a candidate passes the Part I examination, they must pass Part II within four years. If candidates fail, they must re-enroll in the FRM Program as a New Candidate and take Part I again.
After passing the FRM Part I exam, can it be included on one’s CV/Resume?
Yes, one can include the following statement on your CV/resume:
“FRM Program – Passed FRM Exam Part I”
Is it possible to register for Part II before the results for Part I are announced?
You can only register once you have successfully passed Part I.
FRM FAQs on Work Experience and Certification Process
What is the work experience requirement to become a Certified FRM?
GARP has mentioned in detail the Experience requirements for appearing for the Exam.
What is the difference between someone who has passed the FRM Exam and a Certified FRM?
A Certified FRM has passed the FRM Exam, has met the two years of professional work experience requirement, and has been certified by GARP.
A person who has passed both parts of the FRM Exam but has not yet met the professional work experience requirement is not considered a Certified FRM.
When can someone begin using the FRM designation?
To use the FRM designation, you must pass both the FRM Part I and Part II exams, fulfill the two-year work experience requirement, and receive notification that your CV/resume submission for your FRM Certificate has been reviewed and is complete.
FRM FAQs on GARP Membership
Does someone have to be a member of GARP to sit for the FRM Exam?
The FRM Exams do not require membership, but once you pay the enrollment fees in the FRM Program, you will automatically receive complimentary membership privileges for one year.
How much is the GARP’s Individual Membership fee?
The Individual Membership fee is US$195. However, the organization offers Certified FRMs a discounted membership rate of US$150.
We have answered several queries to help Matt calm down before the exams and concentrate on his studies. Let’s hope he does well and becomes a qualified Financial Risk Manager. But more than that, I hope his mother can feel relieved, have time for herself, and do less cooking.
Here are some articles that will help you get more details about Financial Risk Management, so go through the link.