BERKELEY SCHOOL OF BUSINESS, ARTS & SCIENCES

Overview

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.

Offered by

The Global Association of Risk Professionals (GARP)

Head office

The head office is located in New York, New York, USA.

Members

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.

Founded in

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.

Vision & Mission

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.

What is the eligibility?

There are no formal prerequisites for taking the FRM Part I exam, though a background in finance, economics, or mathematics can be helpful. For FRM Part II , candidates must pass Part I before proceeding. Additionally, candidates must have two years of work experience in risk management or related fields to receive the FRM certification.

Who can do?

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.

Course Structure

FRM Part 1:

FRM Part 1 Overview:

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:

FRM Part 2 Overview:

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%

Lecture plan

FRM Part 1

FRM Part 1 "FRM Part 1 Lecture Plan

Foundations of Risk Management

Quantitative Analysis

Financial Markets and Products

Valuation and Risk Models

FRM Part 2

FRM Part 2 — Grid Cards "FRM Part 2 Lecture Plan:

Market Risk Measurement and Management

Credit Risk Measurement and Management

Operational Risk and Resilience

Liquidity and Treasury Risk Measurement and Management

Risk Management and Investment Management

Current Issues in Financial Markets

Learning Methodology

Berkeley Learning Materials:

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.

Lectures

Practice Session

Mock Examination

What are the Exam Information?

FRM Exam Information

Exam Format & Duration

■ 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

Exam Dates

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.

Passing Criteria

■ 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.

Exam Locations

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.

Success Stories

Read about our student's success stories as testimonials

Alumni Benefits

✔ Exclusive Networking Events: Access invitations to industry-leading events and thought-leadership gatherings featuring renowned speakers.
✔ Monthly Updates: Stay informed with a newsletter highlighting the latest research, events, and activities from the school.
✔ LinkedIn Community Access: Join the Executive Education LinkedIn group for networking and professional development opportunities.
✔ Educational Discounts: Enjoy a 20% discount on open-enrollment programs and access to workshops focused on emerging trends.
✔ Global Alumni Network: Connect with a diverse alumni community through the Berkeley School’s online network and engage in country and interest groups.

FRM Salary: Is It Worth the Investment?

FRM Salary Overview

Career Level (Global Averages)

■ 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+.

Regional Salaries

■ 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.

What you earn

FRM Benefits

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 Advancemen
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.

FRM - Financial Risk Manager