FRM®(Certified Financial Risk Manager Program) is an international professional certification offered by GARP(The Global Association of Risk Professionals). GARP is the only recognized membership association for professional risk managers.

1. FRM
GARP
www.garp.org
Part 1
Part 2
www.letslearnglobal.com

2. FRM®
Financial Risk
Manager

3. FRM® Financial Risk Management
FRM -Basics
FRM

4. FRM® Financial Risk Management
FRM -Basics
• Financial Risk Manager is a globally recognized professional certification program offered by Global
Association of Risk Professionals (GARP) ®, USA. The certification measures risk management
professionals’ skills & knowledge in providing financial advice based on globally accepted industry
standards
• FRM certification program is a practice-oriented examination offered in 2 parts (i.e., FRM Part I & II)
covering essential topics in financial risk management. One also needs to demonstrate 2 years of
professional work experience in financial risk management along with fulfilling other requirements
• Thus FRM certification is a benchmark adopted by companies in ensuring that their risk management
employees are well versed in the latest financial risk concepts.

5. FRM® Financial Risk Management
FRM -Basics
GARP ® (Global Association of Risk Professionals)
• The Global Association of Risk Professionals (GARP)® is a not-for-profit
organization and the only globally recognized membership association for risk
managers.
• Established in 1996, GARP is governed by a Broad of Trustees comprising of
leading management practitioners & academics.
• GARP has over years developed a comprehensive suite of programs geared for
both individuals as well as institutions. The breadth and depth of these products
and services address the critical need for risk education that keeps pace with a
rapidly evolving industry.

6. FRM® Financial Risk Management
FRM -Basics
FRM fact Sheet
• FRM Program inception : 1997
• 26,000+ certified FRMs
• 195+ Countries
• 150,000+ registrations
• Certified FRMs have held positions like, Chief Riks Officers, Senior Officers
• Members are employed by , Central banks, Commercial banks, Investment
banks, Corporation banks etc.,

7. FRM® Financial Risk Management
FRM -Basics
• Target Audience
Any graduate who wants to build a career in the risk management
domain.
• Pre-requisites for FRM Exam
There are no educational or professional prerequisites to sit for the
FRM Exams

8. FRM® Financial Risk Management
FRM -Basics
• Benefits of FRM Certification
• Enhanced Career Prospects (Stand out to all major employers)
• Develop ones’ knowledge and expertise on Risk Management
• Join an Elite group of Certified FRM professionals
• Help an individual demonstrate his/her skills
• Confirm your Achievements by providing real-world experience
• Enhance a professional’s reputation

9. FRM® Financial Risk Management
FRM -Basics
• Certified FRM Professional
An individual has 5 years to validate their work experience by completing an
online form. If the work experience is not validated within the 5 stipulated years,
then that individual will be required to retake the FRM Examination.
Pass both levels of FRM®
Examination
2 Years of Full Time Work
Experience
FRM® Certified

10. FRM® Financial Risk Management
FRM -Basics
• Examination Syllabus
• The FRM Exam is designed by the FRM Committee consisting of a group of
distinguished risk professionals and academics with diverse professional
backgrounds
• The FRM Exam Part I and Part II covers a range of topics related to financial
risk management

11. FRM® Financial Risk Management
FRM -Basics
• Examination Syllabus –
20%
20%
30%
30%
Part 1
Quantitative Analysis
Foundation of Risk
Management
Financial Markets & Products
Valuations & Risk Models

12. FRM® Financial Risk Management
FRM -Basics
• Examination Syllabus –
25%
25%25%
15%
10%
Part 2
Market Riks Measurement &
Management
Credit Riks Measurement &
Management
Operational and Integrated
Risk Management
Risk Management &
Investment Management
Current Issues in Financial
Markets

13. FRM® Financial Risk Management
FRM -Basics
Examination Registration Process
An individual can register for the Financial Risk Manager (FRM)
Examination by filling an online application available at
https://www.garp.org/frm/register/register.aspx

14. FRM® Financial Risk Management
FRM -Basics
Examination Fees
Enrollment fee entitles an individual to a complimentary 1 year individual
membership in GARP. The membership includes access to a wealth of premium risk
content, programs & events, career centers etc., which forms a part of
Registration Type Enrollment Fees Exam Fees Total Fees
Early $300 $350 $650
Standard $300 $475 $775
Late $300 $650 $950

15. FRM® Financial Risk Management
FRM -Basics
• Examination Format
The FRM Exams are held twice a year i.e., 3rd Saturday May & November
FRM® Part 1 Examination
Exam Format Total Examination
Questions
Pass Rate (%) Exam Duration
Multiple Choice 100 45.9% 4 Hours
Two sessions of 2 hrs each

16. FRM® Financial Risk Management
FRM -Basics
• Examination Format
The FRM Exams are held twice a year i.e., May & November
FRM® Part 2 Examination
Exam Format Total Examination
Questions
Pass Rate (%) Exam Duration
Multiple Choice 80 45.9% 4 Hours
Two sessions of 2 hrs each

17. FRM® Financial Risk Management
FRM -Basics
Examination
• Both exams are administered manually via paper & pencil
• Necessary to Pass Part I before evaluation of Part II
• The results for both examinations are announced via Email
about approximately 6 weeks post examination date
• Candidates are allowed to use GARP-approved calculators
during the examination
• There are no penalties for wrong answers.

18. FRM® Financial Risk Management
FRM -Basics
Examination
• The exam is a percentile based exam and there is a sectional cut-off for all the
subjects, thus it's necessary to pass in all the subjects separately and clear the
cutoff overall as well.

19. FRM® Financial Risk Management
FRM -Basics
What types of calculators are allowed to be used on Exam Day?
Only the following types of business calculators are authorized for use during the
Exam. There will be no exceptions to this policy.
Hewlett Packard 10B II,10B II+,20B
Hewlett Packard 12C
Texas Instruments BA II Plus

20. FRM® Financial Risk Management
FRM -Basics
Thank You