FRM PDF  | Print |  E-mail

The Financial Risk Manager Program


Updated Oct 2009

 

| Check out the forums to discuss the FRM Designation |


Sponsored by the Global Association of Risk Professionals, the Financial Risk Manager program is designed to build up knowledge of the risk management industry. The program has recently been amended to a more comprehensive syllabus covering 2 "levels".

 

Completed in one year, the exam is offered once a year in November with registration beginning in March of the same year, there are currently about about 18,000 certified FRMs worldwide.

 

The examination is considered to be more quantitative when compared to the CFA examination, and with an average pass rate in the mid 40% range over the past few years. The FRM Examination is a 5-hour, approximately 140 question, multiple-choice exam. The Examination is split into two 2.5 hour sections and is given in booklet form.

 

The FRM is currently rival to the PRMIA, which in itself is also a risk management examination, but founded more recently, and although the pros and cons of that examination will not be discussed on this page, it can be said that most individuals believe one or the other to prosper above the other in the future but which one it will be has yet to be seen.

 

Duration of Program: 2 Exams
Cost of Program: USD550 (early registration)

 

Topic Outline:

  • Foundations of Risk Management
  • Quantitative Analysis
  • Financial Markets and Products
  • Risk Modeling
  • Market risk measurement and management
  • Credit risk measurement and management
  • Operational and integrated risk measurement and management
  • Risk management and investment management
  • Current issues in financial markets

 

 

The FRM covers many of the key issues which affect risk management departments today, especially topics surrounding Basel II and current topics related to credit risk. The more recent addition of "Risk Management in Investment Management" reflects the growing need for monitoring of risk not only within a traditional bank or corporate environment, but also within asset management houses and hedge funds.

 

Conclusion


We believe that the FRM is certainly a useful program to take as it covers a wide array of risk management knowledge which will be essential, even if you are not a risk professional, particularly as Basel II continues to filter into corporate risk management.

 

- Note: All data and factual information was taken from the GARP website and GARP does not endorse nor contribute to this webpage.