Everything you need to know about FRM® certification

FRM stands for Financial Risk Manager . It is an international professional certification awarded by GARP (Global Association of Risk Professionals). It is recognized worldwide as the gold standard for professions related to financial risk management.

This is a very common question. The CFA is a generalist (asset management, overall financial analysis). The FRM is highly specialized in risk (market risk, credit risk, operational risk, Basel III).
Note: The FRM is often considered more quantitative (mathematical) than the CFA.

Yes, absolutely. In the French banking sector (BNP, SocGen, Crédit Agricole) and insurance, FRM is extremely valued for Risk, Compliance and Trading departments, as it guarantees mastery of international regulations.

There are 2 parts (Part I and Part II) .

• Part I (100 MCQs - 4h): Focus on quantitative tools, financial markets and valuation models.
• Part II (80 MCQs - 4h): Practical application (Market risk, credit, operational, liquidity, investment management).

The curriculum covers very technical subjects: 
- Foundations of Risk Management
- Quantitative Analysis (Probas, Stats, Time Series)
- Financial Markets & Products (Futures, Options, Swaps)
- Valuation & Risk Models (VaR, Expected Shortfall)
- Market, Credit, Operational & Liquidity Risk
- Current Issues (IA, Blockchain, Climat...)

No. As with the CFA, the FRM exam is conducted exclusively in English . International financial terminology is essential for success.

A unique feature of the FRM is that there are no academic prerequisites to register and take the exams (Parts I and II). Anyone can try.
However, to be *certified* after passing the exams, you will need to demonstrate two years of professional experience in the risk management field.

The fees are paid directly to GARP (in addition to the Top Finance training).

• One-time registration fee (Enrollment Fee): ~$400.
• Registration Fee: Between $600 (Early Bird) and $800 (Standard) per game.

The FRM is known to be difficult, especially for those without a mathematical background. The pass rate is approximately 45-50% for Part I and 50-60% for Part II . Time management (4 hours for 100 questions) is the main challenge.

The GARP recommends approximately 200 to 240 hours of revision per section . This is slightly less than the CFA, but the mathematical density requires intensive practice of the exercises.

Preparing for the FRM on your own can be daunting when faced with the very academic official textbooks. 
The Top Finance approach:

• Kaplan Schweser Partnership: We provide the SchweserNotes (the "bible" for candidates) which summarize the essentials.
• Intensive MCQs: Access to QBank (+3000 questions) to automate the solving of calculations.
• FRM Experts: Our professors explain complex models (Black-Scholes, GARCH, Copulas) in a pedagogical way.

There are numerous and rapidly growing career opportunities:
- Risk Manager (Market, Credit, Operational)
- Chief Risk Officer (CRO)
- Quantitative Analyst
- Compliance Officer / Basel III
- Portfolio Manager (risk side)

Since the financial crises and the tightening of banking regulations, risk experts have become indispensable. The FRM (French Risk Management Framework) is proof of your technical expertise. It's a powerful accelerator for reaching management positions in major banks and insurance companies.