FRM Certification – All you need to know about it.

by | May 4, 2016 | Financial Management

Overview of FRM Certification:

The Financial Risk Manager (FRM®) designation is an international professional certification offered by the Global Association of Risk Professionals (GARP). To be awarded the FRM designation, a candidate must complete a rigorous two-part, practice-oriented examination that covers the major topics in financial risk management, demonstrate two years’ professional work experience in financial risk management, and meet other requirements.

Insights about FRM Certification:

Q. Who should take FRM?

Ans: FRM is a coveted designation and is majorly taken by those dealing with Risk Management. The ideal industry segments would be Banks, NBFC’s, Financial Institutions, Credit Rating Agencies, Investment Banks, Consulting firms etc. Some renowned companies employing FRM holders include Agricultural Bank of China,  Banco Santander,  Bank of America,  Bank of China,  Citigroup,  Credit Suisse,  Deutsche Bank, Ernst & Young,  HSBC,  JP Morgan Chase,  KPMG,  PwC,  UBS,  Wells Fargo, ICBC etc.

Q. Why do companies employ FRM holders?

Ans: FRM concepts are directly applicable to working needs of an Organization. FRM holders are involved in controlling, analysing, or evaluating potential credit risk, liquidity risk, market risk and other financial risks. The FRM certification gives an edge over other risk professionals.

Q. When can an Individual get certified as FRM?

Ans: The FRM credentials will be awarded only after successful completion of the examinations (Part1 and Part2) with at least 2 years of relevant work experience.

Q. Can an Individual directly appear for FRM Part II Examination?

Ans: Candidates must take the FRM Part I exam before taking Part II. However, a candidate can appear for both Part 1 and Part 2 examination on the same day. In such a case, Part 2 evaluation would happen only if the candidate has cleared Part 1.

Q. What can the candidates do if they don’t have relevant work experiences?

Ans: Individuals without relevant work experience can also take the FRM certification and clear the exam. The formal FRM certificate from GARP will be mailed to the candidates only after showcasing relevant work experience. During this period individuals can notify the employers by producing the results from GARP and indicating that they have successfully cleared the FRM certification.

Note: Certified FRM® are strongly encouraged to earn 40 hours of Continuing Professional Development (CPD) every two years to maintain the latest & best practices in risk management.

Highlights of FRM Course and Examination:
About FRM Certification
 *Ideal preparation time for FRM certification is 6 months for each part, if you’re new to the concepts.
 Following calculators are approved for use during Examination:
  • Hewlett Packard 12C (including the HP 12C Platinum and the Anniversary Edition)
  • Hewlett Packard 10B II
  • Hewlett Packard 10B II+
  • Hewlett Packard 20B
  • Texas Instruments BA II Plus (including the BA II plus Professional)

Success Rate of FRM Certification:Pass Percentage of FRM Certification HolderFRM® OverviewFRM® Course | Register with GARP | Approved Exam Preparation Provider

Disclaimer: FRM® (or Certified FRM®) are trademarks owned by the Global Association of Risk Professionals.
Satish Rajagopalan, CISA, ITIL Foundation
CEO & Founder at Spearhead EduOnline Pvt Ltd. (the company that owns and operates He holds a btech in Computer Science, an MBA in Strategy and Entrepreneurship and a post graduation in Finance. Read More.

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