FRM Exam 2023

People are gaining advanced knowledge through short term courses in Finance or FRM certification. This certification program is a medium to prove financial knowledge and professional skills and be at par with the experts employed in the leading multi-national companies and institutions across the world. Anyone interested in becoming an FRM can register for the FRM exam. The FRM EXam conducts two tests and is conducted by the Global Association of Risk Professionals (GARP). The exam will be conducted on two different occasions and dates. In this blog, you will read every detail regarding the FRM Exam/registration.

Test Name	FRM Exam
Conducted By	Global Association of Risk Professionals (GARP)
Exam Cost	US$ 1200 (INR 98,119)
Eligibility	No eligibility criteria
Exam Dates	May 6 – 19, 2023 May 6 – 19, 2023
Validity	2 Years

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What is FRM Certificate?

An FRM Certificate is a proof that you are a certified Financial Risk Manager. In order to receive this certificate, you need to:

• Pass Level 1 FRM Exam
• Pass Level 2 FRM Exam
• Show at least 2 years of work experience

It is important to note that if you have more than ten years of experience before passing Level 2 FRM exam, you will not be eligible for the certificate.

What is a Certified FRM (Financial Risk Manager)?

Financial Risk Manager or FRM is a globally recognized certification provided by the Global Association of Risk Professionals (GARP) who through the FRM exam identify the potential candidates having specialized knowledge in evaluating the organization’s risk and can develop various strategies and approaches to minimize the impact. Apart from predicting the amount of risk, an FRM is responsible for identifying threats to the assets and the earning propensity of the organization. The Financial Risk Management professionals are mostly employed in major banks, asset management firms, accounting firms, insurance companies, regulatory agencies, etc. 

Also read: CFA Course

FRM Registration

Registering for the FRM Exam is very simple and easy. You can directly register through the website of GARP. Here are the important details that you need to know to fill the registration form:

1. Go to the GARP website registration portal.
2. Select the Exam Selection 
3. If you are only interested in taking the FRM Part 1 exam, select that. Otherwise, select FRM Part 1 and Part 2.
4. Please note that you will not receive FRM certification without qualifying exam 2. 
5. Select the examination dates that suit you. 
6. Select your country, and fill other details. 
7. Ebooks for preparation will be available to you as a part of registration. However, if you wish to buy a hardcopy, you can do that. 
8. Select all the important criteria, pay your examination fee.
9. You will be registered for the exam.

FRM Exam Dates 2023

Here are the important dates that you need to know for applying in 2023. 

FRM Exam Date – May 2023

FRM Part I Exam May 6-19, 2023
FRM Part II Exam May 20-26, 2023
Registration Date January 31- March 31, 2023
Exam Scheduling Date Dec. 1, 2022 – April 21, 2023

FRM Fees

The fees for FRM exam depends on the exam and duration you choose. Here is a detailed format of the fees for FRM exams.

1. Registration Fees For Early Candidates  (Before January 31, 2023)

New Candidate for Exam I	US$ 950 (INR 77,678) (Including US$ 400 Enrollment Fees)
Returning Candidate for Exam I	US$ 550 (INR 44,965)
Candidate for Exam II	US$ 550 (INR 44,965)

2. Registration Fees For Regular Candidates  (After January 31, 2023 till March 31, 2023)

New Candidate for Exam I	US$ 1150 (INR 94,018) (Including US$ 400 Enrollment Fees)
Returning Candidate for Exam I	US$ 750 (INR 61,316)
Candidate for Exam II	US$ 750 (INR 61,316)

3. Other Fees

Charges for Hard copy of Books	US$ 300 (INR 24,526)
Membership Fees for GARP  (Annual)	US$ 195 (INR 15,950)

FRM Exam Pattern 2023

The FRM test is an offline, pen and paper-based examination which is held twice a year across the globe. Held in the months of May and November, the test is conducted solely in the English language. The FRM syllabus is divided into 2 parts: FRM Exam Part 1 and FRM Exam Part 2. Given below is a summary of the important details related to both the papers: 

FRM Exam Part 1

This part of the FRM exam is the first challenge towards realizing your dream as a Financial Risk Manager. Conducted in the morning shift, the paper consists of 100 MCQs which have to be completed within 4 hours. The major topics included in part 1 have been listed below: 

Foundations of Risk Management

• Chapter 1. The Building Blocks of Risk Management
• Chapter 2. How Do Firms Manage Financial Risk?
• Chapter 3. The Governance of Risk Management
• Chapter 4. Credit Risk Transfer Mechanisms
• Chapter 5. Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)
• Chapter 6. The Arbitrage Pricing Theory and Multifactor Models of Risk and Return
• Chapter 7. Principles for Effective Data Aggregation and Risk Reporting
• Chapter 8. Enterprise Risk Management and Future Trends
• Chapter 9. Learning from Financial Disasters
• Chapter 10. Anatomy of the Great Financial Crisis
• Chapter 11. GARP Code of Conduct*

Quantitative Analysis

• Chapter 1. Fundamentals of Probability
• Chapter 2. Random Variables
• Chapter 3. Common Univariate Random Variables
• Chapter 4. Multivariate Random Variables
• Chapter 5. Sample Moments
• Chapter 6. Hypothesis Testing
• Chapter 7. Linear Regression
• Chapter 8. Regression with Multiple Explanatory Variables
• Chapter 9. Regression Diagnostics
• Chapter 10. Stationary Time Series
• Chapter 11. Nonstationary Time Series
• Chapter 12. Measuring Returns, Volatility, and Correlation
• Chapter 13. Simulation and Bootstrapping

Financial Markets and Products

• Chapter 1. Banks
• Chapter 2. Insurance Companies and Pension Plans
• Chapter 3. Fund Management
• Chapter 4. Introduction to Derivatives
• Chapter 5. Exchanges and OTC Markets
• Chapter 6. Central Clearing
• Chapter 7. Futures Markets
• Chapter 8. Using Futures for Hedging
• Chapter 9. Foreign Exchange Markets
• Chapter 10. Pricing Financial Forwards and Futures
• Chapter 11. Commodity Forwards and Futures
• Chapter 12. Options Markets
• Chapter 13. Properties of Options
• Chapter 14. Trading Strategies
• Chapter 15. Exotic Options
• Chapter 16. Properties of Interest Rates
• Chapter 17. Corporate Bonds
• Chapter 18. Mortgages and Mortgage-Backed Securities
• Chapter 19. Interest Rate Futures
• Chapter 20. Swaps

Valuation and Risk Models

• Chapter 1. Measures of Financial Risk
• Chapter 2. Calculating and Applying VaR
• Chapter 3. Measuring and Monitoring Volatility
• Chapter 4. External and Internal Credit Ratings
• Chapter 5. Country Risk: Determinants, Measures, and Implications
• Chapter 6. Measuring Credit Risk
• Chapter 7. Operational Risk
• Chapter 8. Stress Testing
• Chapter 9. Pricing Conventions, Discounting, and Arbitrage
• Chapter 10. Interest Rates
• Chapter 11. Bond Yields and Return Calculations
• Chapter 12. Applying Duration, Convexity, and DV01
• Chapter 13. Modelling Non-Parallel Term Structure Shifts and Hedging
• Chapter 14. Binomial Trees
• Chapter 15. The Black-Scholes-Merton Model
• Chapter 16. Option Sensitivity Measures: The “Greeks”

Related Read: How to Pursue CA After Graduation

FRM Exam Part 2

Only those who qualify for the FRM exam part 1 are eligible to appear for the 2nd level of the certification course. It comprises 80 multiple choice questions which evaluate the candidates on the basis of the application of the knowledge gained in the first part of the exam. The part 2 test is held in the afternoon shift and has the same time limit as part 1 i.e. 4 hours. Following are the topics included in this level of the test: 

• Market Risk Measurement and Management
• Credit Risk Measurement and Management
• Liquidity and Treasury Risk Measurement and Management
• Operational Risk and Resiliency
• Risk Management and Investment Management
• Current Issues and Financial Markets

Note: If a candidate wishes to take the FRM exam part 2 on the same day after completing part 1 then, the answers of part 2 examination will be evaluated by GARP only after one obtains passing marks in the first part. Further, there is no negative marking for incorrect answers. 

Exam Centres in India

There are seven exam centres in India where you can take the FRM Exam. Here are the details regarding the same:

City	Centre Address
Bangalore, Karnataka	Prometric Testing Pvt. Ltd Prestige ShantiNiketan, 3rd Floor Tower B, Whitefield ITPL Road
Chennai, Tamilnadu	Prometric Testing Centre c/o Dhanalakshmi College of Engineering Dr. V. P. R. Nagar, Manimangalam Post
Hyderabad, Telangana	Prometric Testing Pvt. Ltd Kapil Towers IT Block, 9F Unit-2 Survey No 115/1, Opp ICICI Bldg, Nanakramguda, Gachibowli
Kolkata, West Bengal	Techno India University GATE NO:2, EM-4/1,, Sector V, Salt Lake
Mumbai, Maharashtra	Thakur College of Science & Commerce GATE No :3, Thakur Village, Kandivali East
New Delhi, Delhi	Abinav Global School Entry from Gate# 5, Nr Metro Stn, Sector 13, Kakrola, Dwarka
Pune, Maharashtra	Indian Institute For Aeronautical Engineering And Information Technology Shastri Campus, S. No 85,, NDA Road

How to Become FRM Certified?

Getting FRM certification is no simple task and is awarded on completing all the requisite levels. Apart from the FRM exam, the candidates also need to fulfill other criteria. Here is a step-by-step guide on how you can become a certified FRM: 

• The first step is to clear the rigorous FRM exam part 1 and 2. Once you pass the first part, you need to clear the second level within four years.

• After clearing both the parts of the FRM exam, the candidate must demonstrate a minimum of 2 years of work experience and this has to be mentioned via an online application. The related experience may include industry research, academia, trading, portfolio management, auditing, risk technology or risk consulting.

• After getting the certification, it is strongly recommended that the FRMs keep their knowledge and skills up-to-date by enrolling in Continuing Profesional Development (CPD) program. 

Note: Participation in this program is completely voluntary.

FRM Study Material

FRM Study Materials will be provided to you during your registration. Your registration fee includes the fees for the ebooks. However, you can opt for physical copies for extra charges. 

You can download the Study Guide from GARP. It includes the entire syllabus in detail.

Also Read: Investment Banking Jobs

Exam Policies

FRM Exam has certain policies that students need to follow in order to take the exam. Here are crucial exam policies that you must be aware of:

Exam Admission Policy

Students need to make sure of the following details in order to take the exam seamlessly:

• In order to take the exam, you must register and pay the examination fee. 
• If the candidate does not attend the exam on the mentioned date, they will forfeit the registration fee.
• If they wish to sit in the future, they must repeat the entire registration process again
• If you wish to get refund after the registration, you must do it within 48 hours, post that no refund request will be accepted
• FRM Candidates can only request for deferring their exam date for each FRM Exam I and Exam II. There is a USD 200 fee to defer.

Exam Room Policies

On the day of exam, you need to prepare specially for your admission in the exam room to following crucial rules during the exam:

• You must bring a government-issued Passport or Drivers’ license
• You must bring a printed copy of your confirmation of appointment email.
• You should bring a Calculator with you. Only the following calculators are allowed, any other calculator will result in not calculating your results:
  • Hewlett Packard 12C
  • Texas Instruments BA II Plus
  • Hewlett Packard 10B II
  • Hewlett Packard 10BII+
  • Hewlett Packard 20B
• You cannot bring anything else with you including a pencil.
• You will be provided with pencils and two scratch papers
• All personal belongings will be submitted to the storage box.
• You can use restroom facilities during the exam but your time will be counted during the exam

FRM Career Opportunities

The FRM certification sets you apart from your peers and gives you a competitive edge with colleagues, clients, and potential jobs. Individuals, regardless of their educational level, have the opportunity to further their professions. It assists applicants with specific financial risk management knowledge and abilities. It connects you to the world’s most famous financial risk management specialists through a network. It offers a wide range of job opportunities in Risk Management, Trading, Structuring, Modeling, and other fields. Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director, Investment Risk Management are just a handful of the roles available to FRM holders. It adds a lot of value to your talents, certifications, and résumé.

Industries Employing Certified FRM’s

Candidates for the FRM designation come from a variety of fields, including:

• Banks
• Investment banks
• Asset management firms
• Corporations (including non-financial corporations)
• Consulting firms
• Hedge funds
• Insurance firms
• Credit agencies
• Government/regulatory agencies
• Risk and technology vendors

Advantages of the FRM Designation

First and foremost, there is the program’s reputational value. It is often considered the most prestigious accreditation in the risk management business. As a result, it is a significant indicator of competence and expertise in the industry. Given how quickly financial markets change, the need for risk management professionals is only expected to increase over time. The obvious educational gain is the second advantage. The FRM certification, as previously said, equips professionals with a complete grasp of risk management. In practice, this involves being able to recognize, respond to, and adjust to significant risks.

FAQs

Even though obtaining an FRM certification opens the door to an array of opportunities, clearing the FRM exam is not a simple path. Needless to say, it requires the right kind of skills and education in the field of Finance and Management. If you are looking forward to pursuing higher education before appearing for the exam but are not sure about how to get started with it then take the assistance of Leverage Edu’s AI-enabled tool. It will curate the list of the best programs and universities keeping in mind your interests and competencies.