Know what FRM is, Its course details, fees, duration, and career scope. Learn how this certification can advance your career in risk management | Zell

1. What is FRM? Full Form, Course
Details & Fees
Thinking about what it takes to be an elite risk management professional?
Introducing the FRM certification, this qualification is a globally recognized
badge of expertise in the world of finance. But before learning about the
certification, let’s learn about the meaning of FRM. FRM helps you climb the
corporate ladder in banking, finance, or investment.
The FRM credential puts you on a course to master the art of risk
management. In this article, we will walk you through what is FRM. What is
the full form of FRM? FRM course details, its pros and cons, FRM exam
procedure, FRM levels, Financial Risk Manager salary, FRM in banking, and
Financial Risk Management certification in detail.
As the field of finance evolves at a fast pace, so do careers in finance. One
such profession that’s gaining popularity among the others is Financial Risk
Management. After the pandemic, it became essential for several companies
to risk-proof their financial management. To do that it is necessary to have an
in-house expert who can analyse all the financial statements of the company
and understand the impending risk factors that can be eliminated. FRM is a
niche profession to be in and brings exciting challenges for those who

2. possess an interest in this field. Every MNC, fast-growing start-up and HNI is
now sensing the need to hire a Financial Risk Manager.
In this article, we will walk you through what is FRM? FRM full form. FRM
course details, eligibility, its pros and cons, FRM exam procedure, FRM levels,
Financial Risk Manager salary, FRM in banking, and Financial Risk
Management certification in detail.
What is FRM?
FRM full form – Financial Risk Manager (FRM), is a professional certification
awarded by the Global Association of Risk Professionals (GARP). Experts
recognize it worldwide as the standard of expertise in financial risk
management. The Financial Risk Management certification is for people who
want to build careers in risk-related fields. This includes areas like market risk,
credit risk, operational risk, and investment management.
The FRM certification is highly regarded within the financial industry. The
course is often sought by professionals working in banking, asset
management, insurance, consulting, and regulatory agencies. This course is a
pretty challenging program covering topics related to risk management:
quantitative analysis, financial markets, valuation models, and risk
measurement.

3. This certification prepares you with a profound level of knowledge in risk
management principles. While increasing your credibility and marketable
features within the finance field.
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FRM Course Details
Now, what is the meaning of FRM? FRM stands for Financial Risk Manager. A
professional designation provided by the Global Association of Risk
Professionals to individuals showing expertise in handling financial risk. The
program is divided into two parts:
Part I FRM: Part 1 of FRM teaches you the tools to analyze the topics in Part 2.
This section covers the essentials. You will focus on quantitative analysis, risk
management principles, financial markets, and valuation models.
Part II FRM: And now you put all these tools you have learned to work. This
part teaches real-world applications with market, credit, and operational risk,
even the newest trends in financial markets.

4. You can complete the FRM syllabus within a year, but generally, it takes 1.5 to
2 years to finish. The exams take place twice a year, in May and November, at
various locations around the world.
Differentiator
s
Financial Risk Management
Organizing
Body
GARP: Global Association of Risk Professionals
Course
Duration
1 to 2 years
Difficulty
Level (passing
percentage)
45% for Part I and 63% for Part II
Eligibility
Criteria
An undergraduate in the final year of their degree can
also apply for the FRM course. However, you need to
clear your part 1 to appear for the part two
examinations. Within the 5 years of your learning
journey, you must also have 2 years of relevant work
experience.

5. Career Scope Job profiles you can explore
Risk Analyst
Risk Manager
Credit Risk Analyst
Market Risk Analyst
Regulatory Risk Analyst
Top Hiring
Firms
PwC
ICBC
JP Morgan Chase
Consulting Firms
Hedge Funds
FRM Course Eligibility
There aren’t any strict prerequisites to joining the FRM program! While it does
help to have a background in finance, economics, or mathematics. Anyone
interested in risk management can enroll.
You can appear in the Part 1 exam as early as in the 1st year of your college.
However to obtain a certificate you need to complete both parts of the exam

6. within 4 years of applying for Part 1. Along with having a minimum of two
years of relevant work experience to earn the much-sought-after FRM title.
Advantages vs Disadvantages of FRM:
Advantages of FRM
Some pros of doing FRM are mentioned below:
●​ Global Credibility: It is like having a golden ticket for any risk
management job around the world.
●​ Expert-Level Knowledge: You will gain specialized knowledge that
many industries need. This is especially true in banking, insurance, and
investment.

7. ●​ Career Boost: Generally, holders of the FRM qualification progress
career-wise at faster rates and usually command higher salaries.
Disadvantages of FRM
Some cons of doing FRM are mentioned below:
●​ Tough Exams: The exams are manageable but not simple. They require
careful preparation and study time.
●​ Investment: Be it time or money, the preparation involved for FRM is
not cheap.
●​ Experience Required: If you are a fresher, needing two years of work
experience may feel like a setback.
So, is FRM certification the correct option for you? If risk management is
something that interests you? Financial Risk Management might be the
career stimulus you are looking for!
FRM Exam Pattern
The process of FRM certification includes passing two sequential exams: FRM
Part 1 and FRM Part 2. These exams have been specifically designed to test
the candidate’s knowledge and understanding of concepts, techniques, and
tools about financial risk management.

8. FRM Part 1: This part provides the candidate with the foundation necessary in
risk management, consisting of four major topics: Foundations of Risk
Management, Quantitative Analysis, Financial Markets and Products, and
Valuation and Risk Models. The part 1 paper brings one hundred
multiple-choice questions, and it is held in May and November. The duration
of the exam is four hours.
FRM Part 2: FRM Part 2 expands on topics introduced in Part 1 and goes on to
discuss the actual implementation of risk management strategies. Market
Risk Measurement and Management, Credit Risk Measurement and
Management, Operational Risk and Resiliency, Liquidity and Treasury Risk
Measurement and Management, and Risk Management and Investment
Management will be discussed. The format of this test is the same as that of
Part 1, comprising 100 multiple-choice questions, and the dates of
examination for both parts are the same.
FRM Syllabus
The syllabus is discussed in detail below, please note that the weightage of
each subject in percentage is written beside their name in brackets.
FRM Part 1

9. ●​ Foundations of Risk Management (20%): Understand the concept of
risk, the role of the risk manager, corporate governance, and
foundations of financial risk management techniques.
●​ Quantitative Analysis (20%): Probability theory, statistics, time series
analysis, and regression analysis, are major areas within the purview of
risk management.
●​ Financial Markets and Products (30%): Covers the various financial
markets including equity, fixed income, derivatives, and foreign
exchange.
●​ Valuation and Risk Models (30%): This section concerns models for
valuing financial products and measuring the risks of holding them.
FRM Part 2
●​ Market Risk Measurement and Management (20%): This will take an
in-depth view of how to measure and manage market risks.
●​ Credit Risk Measurement and Management (20%): The risk associated
with credit exposure assessment and management.
●​ Operational Risk and Resiliency (20%): It deals with the process of
operational risk management and business continuity.

10. ●​ Liquidity and Treasury Risk Measurement and Management (15%):
This section deals with the risks associated with liquidity and treasury
management.
●​ Risk Management and Investment Management (15%): It deals with
integrating risk management practices under investment
management.
Current Issues in Financial Markets (10%): Emphasises reviewing the recent
trends and issues in the financial markets.
Cost of Pursuing FRM
The cost of pursuing an FRM certification includes registration fees,
examination fees, and probable coaching fees. Here’s a breakdown:
FRM Fees for New Candidates
Enrollment Fee: The first time you enroll for the FRM Program, you will have
to pay a one-time Enrollment Fee of USD 400. The amount is not refundable.
Examination Fee: The Exam fees depend on when you register.
Early Registration: USD 600 per part
Standard Registration: USD 800 per part

11. FRM Fees for Repeat Candidates
Candidates who are returning for a repeat attempt or to take the second part
do not have to pay the enrolment fee again. Only the examination fee has to
be paid, which remains the same as the above-mentioned, i.e., USD 600–800
depending on the period of registration.
FRM Average Coaching Fee
Though not compulsory, most candidates go for coaching classes to be
properly trained for the examinations. On average, FRM coaching classes are
going to cost between INR 30,000 to INR 60,000 for each part. The factors
that influence the price of coaching include the type of institute one is
getting coaching from, the mode of learning, that is, online or offline, and the
comprehensiveness of the study materials provided.
FRM Average Coaching Fee
The average coaching fee for FRM online and offline classes are as follows
Online Coaching: Starting from INR 9000
Classroom Coaching: Starting from INR 30,000
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12. FRM Career Scope in India & Abroad
Attainment of the Financial Risk Manager certification leads to the opening of
a host of career opportunities within India and abroad. With financial systems
getting increasingly complex, demand for skilled professionals in risk
management is soaring all across the globe.
Career Opportunities in India
Within India, FRMs are highly in demand. Key locations would be financial
centers like Mumbai, Delhi, Bangalore, and Hyderabad. Some of the
important roles are:
Risk Manager: Mitigate financial risks in the BFSI sectors.
Credit Risk Analyst: Assess creditworthiness and manage lending risk.
Market Risk Analyst: Analyze and manage market risks like stock price
fluctuations and interest rate fluctuations.
Operational Risk Manager: Identify and mitigate the risks arising out of
internal processes and external events.
Investment Risk Manager: Manage risks in investment portfolios.
From ICICI Bank and HDFC Bank to Kotak Mahindra Bank and Axis Bank,
almost all leading banks in the country and international banks with
operations in India like Citi and HSBC, look for FRMs amongst other

13. qualifications. Even consulting firms like Deloitte, KPMG, EY, and PwC
consider FRM as one of the more important qualifications.
Career Opportunities in Aboard
This qualification is considered very prestigious and well-compensated
abroad, especially in New York, London, Hong Kong, Singapore, and Dubai.
One can find employment in the following areas:
CRO: Chief Risk Officer; oversees all risk management efforts at an executive
level.
Quantitative Risk Analyst: Develop mathematical modelling to assess and
manage risk.
Portfolio Manager: Balance risk-return in investment portfolios.
Treasury Manager: Manage liquidity and financial risk for corporations.
Global Risk Analyst: Manage regional risks for global companies.
These FRMs are also wanted by top global banks: JPMorgan Chase, Goldman
Sachs, Morgan Stanley, and such financial firms as BlackRock and Vanguard.
The FRM designation is also coveted by multinational companies like General
Electric, IBM, and Microsoft.
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14. FRM Salary in India
Financial Risk Manager Salary in India differs based on various factors,
including experience, location, and the size of the organization. The average
salary for an entry-level position financial risk manager is between INR
6,00,000 to INR 15,00,000.
Source
FRM Salary in Abroad
An FRM certification opens the door to many top jobs and offers high salaries.
Salaries for FRM-certified professionals differ significantly from country to
country, based on demand in a given financial market. Here is a brief overview
of what you can expect as a professional in the FRM field in different
countries.
Countries Average Salary of a Financial Risk
Manager

15. USA $1,10,000 to $1,50,000
UK £75,000 to £80,000
Canada CAD 1,20,000 to CAD 1,25,000
UAE AED 60,000 to 63,000
Australia AUD 1,45,000 to 1,50,000
Source
FRM Scholarships
Scholarships are available only to students and faculty at schools that are part
of GARP’s Academic Partner Program. The program administrator at partner
institutions can nominate up to six students and one faculty member each
year.
These nominees will receive a scholarship to cover the registration fees for the
FRM Part I Exam. This scholarship supports education in risk management. It
provides financial aid to deserving candidates who excel academically.
FRM and Other Certifications
The following table showcases information about other certifications along
with FRM:

16. Certificatio
n
Focus Area Course Structure Duration
FRM Financial Risk
Management
Two parts: Part I (100
questions), and Part II
(80 questions)
1-2 years
CFA Investment
Management
Three levels cover ethics,
portfolio management,
etc.
2-4 years
CMA Management
Accounting
Two parts: financial
planning, analysis, and
control
6-12
months
per part
CAIA Alternative
Investments
Two levels focusing on
hedge funds, private
equity
1-2 years
Employment Benefits of Earning the FRM
Certification
The following are some of the benefits of earning the FRM certification:
Career Advancement: Acquiring the FRM qualification maximizes the
opportunity for advancement in risk management areas, thus providing a
high-value position in any organization.
Higher Salary Potential: The salary for FRM-qualified experts is normally
higher as compared to non-qualified counterparts. The finance sector highly
regards the relevance of FRM qualification.

17. Global Recognition: The FRM qualification enjoys global recognition, which
makes work opportunities easier across various financial sectors worldwide.
Proof of Skills: FRM certification shows that a person understands risk
management principles. This boosts employers’ confidence in these workers.
Opportunity to Network: You gain access to a world network of finance
professionals by joining GARP. Opening doors to further collaborations and
job opportunities.
Portability: The skills are transferable in many variants of the field, including
banking, investment management, and consulting thus offering flexibility in
careers.
Conclusion
The Financial Risk Manager certification can be a career game-changer in
finance. The course teaches you the ability to steer through complex financial
risks. You will be an instrumental element in organizations.
Whether you are starting in risk management or trying to get to the top of
the business world around the world. The FRM certification avails the
credibility and expertise needed to make a statement in the fiercely
competitive job market.
If you love running financial risks or would like to further your career in
finance, the FRM will be the right credential for you. It opens doors to some

18. exciting and lucrative career opportunities worldwide. Enrol in Zell
Education’s FRM program today!
FAQ’s on Financial Risk Management (FRM):
What is FRM? And its full form.
FRM’s full form is Financial Risk Management.
FRM meaning Financial Risk Manager, is a designation that represents the
global certification of risk professionals. It identifies a person who has gained
competence in identifying, quantifying, and managing financial risks in all
entities, and more specifically in banking, insurance, and asset management.
Who is eligible for the FRM course?
Any person may apply to take the FRM Examination. However, it is advisable
that you have some background in finance or related disciplines. If you have
passed both Parts 1 and 2 FRM Examination and gained two years of relevant
work experience you can be certified.
What is the salary of an FRM?
The annual compensation range for FRM-certified professionals in India is
anywhere between ₹6,00,000 to ₹15,00,000 lakh per annum, depending on
one’s experience and role. Abroad, this amount can be even more variable, so

19. FRM professionals working in the USA would have an annual compensation
of about $1,10,000 to $1,50,000.
What is the course duration of FRM?
The FRM certification usually can be completed within a period of one to two
years depending on candidates’ study pace and the schedule in which they
complete their exams.
What are the job responsibilities of an FRM
professional?
An FRM identifies, assesses, and mitigates financial risks within an
organization. This would include roles such as risk management, credit
analysis, market risk analysis, operational risk management, and others.