1. How much time is needed to prepare for the FRM Exam? Candidates' preparation times will vary based on their prior professional experience level, academic backgrounds, and familiarity with the concepts tested on the curriculum. Therefore, it is difficult to recommend a particular number of hours to dedicate to studying. For some guidance, however, a survey of May 2012 FRM Exam Part I test takers indicates that, on average, individuals devoted about 240 hours to Exam preparation. Individual figures, however, varied from less than 100 hours to more than 400 hours.

2. What types of institutions is the FRM relevant to? The FRM is designed to address the practical knowledge needed to function effectively as a financial risk manager globally, across all institutional settings. The FRM Committee, which guides the development of the FRM curriculum, consists of seasoned risk professionals and academics with a wide range of professional backgrounds. The broader risk management community is regularly surveyed through a formal job task analysis process to determine the knowledge, skills, and abilities required to function effectively as a financial risk manager in the global marketplace. Survey participants come from a wide range of industries including (but not limited to) banking, consulting, traditional asset management and hedge funds, technology, insurance and nonfinancial corporations.

3. What are my career prospects after becoming a Certified FRM? Demand for financial risk managers remains strong. While individuals' career prospects will always vary according to the nature of their prior professional experience, by choosing the FRM you are selecting the best known, most global, and most widely accepted risk management designation in the world. Becoming a Certified FRM will differentiate you from your peers and serves as a validation of your knowledge of the tools and techniques currently demanded by the risk management profession.  The FRM designation is valued by employers in all regions of the world. Certified FRMs are employed by most every major banking institution, government regulator, consulting firm and financial services institution around the world. This, along with career-long opportunities for networking and further professional education, enhances the career prospects of Certified FRMs.

4. How much work experience is required before sitting for the FRM Exam? To become a Certified FRM, candidates must meet a two year professional work experience requirement. However, there are no educational or professional prerequisites to sit for either part of the FRM Exam. Once candidates pass both parts of the FRM Exam, candidates must satisfy the work experience requirement before they can become certified and use the FRM designation. Review certification requirements.

5. Who is GARP, and why is GARP qualified to certify risk managers? The Global Association of Risk Professionals is the only globally recognized professional association for financial and energy risk certification and education. In fulfilling our unique mission to elevate the practice of risk management at all levels throughout an organization, GARP sets the global standard for the risk profession. Founded in 1996, we are a nonprofit, nonpartisan membership organization of over 150,000 individuals that does not engage in political lobbying. This independence allows us to develop design, and administer certification programs that reflect industry best practices. We are governed by a Board of Trustees composed of distinguished risk management practitioners drawn from some of the most prominent global financial firms and universities. To learn more about GARP, click here.

6. What is the difference between the FRM and the CFA? The FRM is an excellent way for candidates to improve their knowledge of market risk, operational risk, credit risk, integrated risk management, valuation and risk models, and risk management in investment management, among other topics. There are many CFA holders who are also Certified FRMs, as the designations attest to different skills and aspects of a candidate's capabilities and the two professional designations complement each other very well. Demonstrating your competencies in financial risk via the FRM designation is a win-win for CFA charterholders especially given the prominent role that CROs and risk managers are now taking in financial institutions in the wake of the global financial crisis.

7. Do you offer any exemptions for either part of the FRM Exam? While there are many other notable professional designations in the financial services industry, GARP does not accept other designations in partial fulfillment of our requirements. GARP feels strongly that the FRM certification must represent an individual's competency in the risk management skill set as defined by our FRM Committee, and as objectively set forth in the FRM Study Guide. A critical component of GARP's assessment of an individual is the instrument with which that competency is measured -- the FRM examinations. To maintain the integrity of the FRM certification and to fulfill our obligations to the risk management community, therefore, GARP cannot rely on the assessments performed by other designation-granting organizations. Thus, candidates for the FRM may not waive either part of the FRM Exam despite any certifications they may have achieved from other certifying bodies.

8. What is the pass rate? The historical pass rates for the FRM Exam can be found here.

9. How is the Exam scored? The passing score is determined by the FRM Committee.

10. If a candidate sits for Part I and II in one day and does not pass Part I, Part II will not be marked. Why is it done this way? Will I have to retake Part I as well? The FRM Exam tests progressive, cumulative knowledge. The concepts tested on Part I is needed for Part II. Thus, in order for GARP to grade Part II, a candidate must first pass Part I.  Hence, if a candidate has sat for both Part I and Part II on the same day, we will not grade Part II, unless a candidate has passed Part I.  So yes, a candidate would need to re-take Part I until they pass.

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If you are unable to find the answer to your question, please don't hesitate to contact us at memberservices@garp.com.