FRM Exam 2025: Updated Guide

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 working 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	USD 1200 (INR 98,119)
Eligibility	No eligibility criteria
Validity	2 Years

What is the FRM Certificate?

The FRM Certificate, or Financial Risk Manager Certificate, is a globally recognised professional credential given by the Global Association of Risk Professionals (GARP). This certificate is designed for individuals who want to build a career in risk management, investment banking, asset management, or financial analysis. 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 the 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 recognised certification provided by the Global Association of Risk Professionals (GARP), through the FRM exam. It identifies potential candidates having specialised knowledge in evaluating the organisation’s risk and can develop various strategies and approaches to minimise 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 organisation. The Financial Risk Management professionals are mostly employed in major banks, asset management firms, accounting firms, insurance companies, regulatory agencies, etc. 

Also read: CA IPCC: Complete Guide for Aspiring Chartered Accountants

How to do FRM Exam 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 out 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 the FRM certification without the 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 part of registration. However, if you wish to buy a hard copy, you can do that. 
8. Select all the important criteria, and pay your examination fee.
9. You will be registered for the exam.

FRM Exam Dates 2025

Here are the important dates that you need to know for applying for the FRM exam in 2025. 

FRM Part I:

• May 10-11, 2025
• August 8-9, 2025
• November 8-14, 2025

FRM Part II:

• May 17, 2025
• November 15-19, 2025

Registration Details:

• Registration opens on May 1, 2025.
• Early registration deadline is July 31, 2025.
• Registration closes on September 30, 2025. 

FRM Exam Fees 2025

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

Fee Type	Part I (USD)	Part II (USD)
Enrollment Fee	USD 400 (one-time)	–
Early Registration Fee	USD 600	USD 600
Standard Registration Fee	USD 800	USD 800
Deferral Fee	USD 200	USD 200

FRM Exam Pattern 2025

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 papers: 

FRM Exam Part 1

This part of the FRM exam is the first challenge towards realising 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:

This subject focuses on the basis of risk management and includes the topic as follows:

• 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

This subject has various chapters mentioned below, which focus on quantitative aptitude and 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

The chapter under the subject ‘Financial Markets and Products” are given below:

• 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

The chapter under the valuation and risk model subjects is as follows:

• 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”

Also read: How to Become a Chartered Accountant?

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. The following are the topics included in this level of the test: 

1. Market Risk Measurement and Management
2. Credit Risk Measurement and Management
3. Liquidity and Treasury Risk Measurement and Management
4. Operational Risk and Resiliency
5. Risk Management and Investment Management
6. 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. 

FRM 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	Abinav Global School Entry from Gate# 5, Near Metro Station, Sector 13, Kakrola, Dwarka
New Delhi, Delhi	Indian Institute For Aeronautical Engineering And Information Technology Shastri Campus, S. No 85, NDA Road
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 fulfil 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 parts 1 and 2. Once you pass the first part, you need to clear the second level within four years.

• After clearing both 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 a Continuing Professional Development (CPD) program. 

Career Opportunities after the FRM Exam

The FRM certification sets you apart from your peers and gives you a competitive edge with colleagues, clients, and potential employers. 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 that are mentioned below:

Job Title	What You’ll Do
Risk Analyst	Identify, assess, and monitor financial risks in banks, investment firms, or corporates.
Credit Risk Manager	Evaluate the risk of lending to clients and help manage loan portfolios.
Market Risk Analyst	Analyse market trends, asset performance, and investment risks.
Operational Risk Manager	Monitor risks in internal processes and suggest ways to reduce losses.
Portfolio Risk Manager	Assess risks in investment portfolios and suggest diversification strategies.
Regulatory Risk Manager	Ensure compliance with financial laws and industry regulations.
Financial Analyst (Risk Focused)	Analyse financial data with a strong focus on risk factors and market conditions.
Treasury Manager	Manage cash flow, liquidity, and currency risk for organisations.

Also read: How to Become a Cost Accountant?

Industries Employing Certified FRM’s

Candidates for the FRM designation come from a variety of fields. Some of the top industries that offer an upper hand to the FRMs are:

• 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

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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.