The Financial Risk Manager (FRM) certification is a globally recognized professional designation for financial risk management professionals. The Global Association of Risk Professionals (GARP) offers it and is widely respected in the financial industry. Here are some things you should know about the FRM certification:
Eligibility requirements:
To be eligible for the FRM exam, candidates must have a bachelor’s degree in any field and at least two years of full-time professional work experience in finance. However, if you are still a student, you can also take the exam, but you will be required to have your degree before applying for certification.
Exam content:
The FRM exam is divided into two parts: Part I and Part II. Both parts are offered twice a year, in May and November. The Part I exam covers the foundational concepts of financial risk management, including quantitative analysis, financial markets and products, and the legal and regulatory environment. The Part II exam covers applying these concepts to real-world scenarios, including market, credit, and operational risk.
Exam format:
The FRM exam is a computer-based test (CBT) conducted over four hours. The exam is composed of multiple-choice questions, and the difficulty level of the questions increases as the exam progresses.
Preparation:
Preparation for the FRM exam requires a significant time commitment. It is recommended that candidates spend at least 200 hours studying for the exam. GARP offers study materials and reviews courses to help candidates prepare for the exam. Additionally, many third-party review courses and study materials are also available.
Career opportunities:
Holders of the FRM certification are in high demand in the financial industry, as they possess the knowledge and skills necessary to identify, assess, and manage financial risks in various organizations. Some career opportunities available to FRM holders include risk management, credit risk management, financial analysis, and portfolio management.
Recertification:
Holders of the FRM certification are required to recertify every two years. This process involves completing continuing education and professional development activities, such as attending GARP conferences or participating in GARP webinars.
In conclusion, the Financial Risk Manager (FRM) certification is a highly respected professional designation for financial risk management professionals. It is offered by the Global Association of Risk Professionals (GARP) and requires a significant time commitment for preparation. Holders of the FRM certification are in high demand in the financial industry and have access to a wide range of career opportunities.
