The Financial Risk Manager (FRM) certification is a globally recognized credential awarded by the Global Association of Risk Professionals (GARP). It is designed for professionals in risk management, finance, and investment sectors, focusing on assessing, managing, and mitigating financial risks. The FRM certification is widely recognized as the benchmark for educational excellence in risk management, offering unparalleled opportunities for career advancement in the risk profession.
The Global Association of Risk Professionals (GARP)
The head office is located in New York, New York, USA.
Currently, more than 90,000 FRM-Certified Professionals are employed at nearly every major bank, asset manager, hedge fund, consultancy, and regulator around the world.
GARP was established in 1996. It is a leading global association for risk management professionals, providing resources and educational opportunities in the field of risk management. FRM certification was introduced by GARP in 1997 as a globally recognized credential to measure and certify the expertise of professionals in financial risk management.
The FRM program aims to provide a comprehensive understanding of risk management and financial risk assessment. Our mission is to advance the risk management profession by offering rigorous education and fostering a global community of risk professionals.
Anyone who is interested to learn about following concepts can pursue FRM - Financial Risk Manager:
Quantitative Analysis, Financial Markets and Products, Valuation and Risk Models, Risk Management Frameworks, Market Risk Measurement and Management, Credit Risk Measurement and Management, Operational and Integrated Risk Management, Risk Management in Investment Management, Current Issues in Risk Management, Foundations of Risk Management.
Individuals with the following designations:
Risk Manager, Risk Analyst, Risk Consultant, Credit Risk Manager, Financial Analyst, Portfolio Manager, Investment Analyst, Credit Risk Analyst.
FRM Part 1 focuses on the foundational tools and concepts in risk management. It emphasizes understanding the principles of risk management, building a strong quantitative foundation, and applying these skills to assess and manage financial risks effectively. Key topics include:
✓ Foundations of Risk Management | 20%
✓ Quantitative Analysis | 20%
✓ Financial Markets and Products | 30%
✓ Valuation and Risk Models | 30%
FRM Part 2 emphasizes applying risk management tools in real-world scenarios. The focus is on advanced practices and integrating concepts for strategic decision-making. It covers:
✓ Market Risk Measurement and Management | 20%
✓ Credit Risk Measurement and Management | 20%
✓ Operational Risk and Resilience | 20%
✓ Liquidity and Treasury Risk Measurement and Management | 15%
✓ Risk Management and Investment Management | 15%
✓ Current Issues in Financial Markets | 10%
Berkeley offers expertly developed learning materials tailored to meet participants' needs, ensuring comprehensive coverage of the syllabus and optimal exam preparation.
► Tailored Material: Guides are designed to cover the entire syllabus, offering full preparation and deep understanding.
► In-Depth Content: Unlike superficial outlines, our materials provide fully developed theories and concepts, equipping participants with complete knowledge.
► Strategic Study: We help participants prioritize study time by indicating the weight of each topic, allowing efficient focus on crucial areas.
► Difficulty Levels: Topics are labeled as "Awareness" or "Proficiency," guiding participants to allocate time based on the required depth of knowledge.
► Comprehensive Coverage: Our materials include detailed theory and a glossary of technical terms to clarify complex concepts.
► Effective Learning Techniques: Visual aids and memorization techniques ensure long-lasting retention, helping candidates succeed.
Berkeley’s methodologies equip participants with the essential knowledge and tools for both exams and future success.
■ Computer-Based Testing (CBT)
| Part/Module | Exam format | Exam duration |
|---|---|---|
| FRM Part 1: | 100 multiple-choice questions | 4 hours |
| FRM Part 2: | 80 multiple-choice questions | 4 hours |
The FRM exams are conducted three times a year, typically in the following months:
■ May
■ August
■ November
These months include both Part I and Part II exams, with specific dates announced annually by GARP.
■ No Fixed Passing Score: The passing mark is not pre-defined and can vary slightly each year.
■ Scaled Scoring: The exam uses a scaled scoring system to adjust for differences in exam difficulty. Scores are based on a relative performance metric, with no negative marking. Typically, candidates need to score around 60% to 65% of the total possible points to pass the exam. However, this is not official and can vary slightly based on exam difficulty.
■ Score Reports: Candidates receive a score report showing their performance in different sections of the exam. The report provides a pass or fail status, but GARP does not disclose exact passing score thresholds.
Candidates must schedule through the provider PSI (View PSI Testing Locations). When visiting the PSI website, you must select your specific exam month to get an accurate look at relevant testing center locations. Candidates based in China, Hong Kong, and Thailand must schedule via the exam provider ATA (View ATA Testing Locations). Seats are available on a first-come, first-served basis.
■ Entry-Level (0–2 years): $50,000–$85,000.
■ Mid-Level (3–7 years): $80,000–$120,000.
■ Senior-Level (8+ years): $120,000–$200,000+.
■ North America (USA, Canada): Entry: $70K–$95K | Mid: $95K–$140K | Senior: $150K–$250K+.
■ Europe (UK, Germany, Switzerland): Entry: $55K–$80K | Mid: $85K–$130K | Senior: $140K–$220K+.
■ Middle East (UAE, Saudi Arabia): Entry: $50K–$75K | Mid: $80K–$120K | Senior: $130K–$200K+.
■ Asia-Pacific (India, Singapore, Hong Kong):
■ India: $20K–$35K (Entry), $40K–$70K (Mid), $80K–$150K (Senior).
■ Singapore/HK: $55K–$75K (Entry), $85K–$130K (Mid), $150K–$250K (Senior).
■ Africa: Entry: $30K–$50K | Mid: $55K–$80K | Senior: $90K–$150K.
You will get a certificate of completion, which is highly reputed and accepted by employers.
Specialized Expertise
Gain specialized knowledge in risk management practices, including market, credit, and operational risk.
Career Advancement
Enhance career opportunities in risk management with a globally recognized certification.
Global Recognition
Achieve a credential respected internationally for its focus on comprehensive risk management strategies.
Professional Development
Access resources and networking opportunities through GARP to support ongoing learning and career growth.
Ethical Standards
Adhere to high ethical standards in risk management, ensuring credibility and integrity in your professional practice.
