Finance & Accounting
FRM (GARP)
Financial Risk Manager
Free FRM practice questions 81 questions with full answer explanations. No sign-up. Start practice →Overview
The FRM (Financial Risk Manager) from GARP is the leading dedicated certification for risk-management professionals. It validates the ability to measure and manage market, credit, operational and liquidity risk in banks, asset managers and corporates.
It is a two-part, multiple-choice exam. Part I covers the foundations, quantitative tools, financial products and valuation/risk models; Part II applies them to market, credit, operational, liquidity and investment risk, plus current issues in financial markets. There is no education requirement to sit, but certification requires two years of relevant work experience.
✓ Who it is for
- People working in or moving into risk management
- Bank, asset-management and corporate-treasury risk roles
- CFA candidates or holders who want a risk specialism
✕ Who it is not for
- General investment-analysis careers - the CFA is broader and better known there.
- Accounting or audit careers - CPA, ACCA or CMA fit better.
- People wanting a single short exam - the FRM is two demanding parts.
Exam structure
| Part I - Foundations of Risk Management (20%) | Risk-management concepts, the role of risk management, governance and ethics |
|---|---|
| Part I - Quantitative Analysis (20%) | Probability, statistics, regression and the quant toolkit for risk |
| Part I - Financial Markets and Products (30%) | Derivatives (forwards, futures, options, swaps), fixed income and markets |
| Part I - Valuation and Risk Models (30%) | Value at Risk, volatility, fixed-income valuation and model basics |
| Part II - Market, Credit, Operational, Liquidity Risk + Investment & Current Issues | Measuring and managing each risk type, risk in investment management, and current market issues |
Realistic study time
- Per part ~200-240 hours each
- Both parts 400+ hours, often about a year
Bars show relative effort, not a guarantee. Your time depends on background and study method.
Turn this into a week-by-week schedule with the Study Plan Generator.
What it really costs
Fees change and vary by region. Confirm the current amount on the official site before you register.
Want your full out-of-pocket figure? Try the Cost Calculator.
Salary & career value
Indicative ranges for orientation only - not surveyed data, and not financial or career advice. Sources and date below.
FRM holders in the US indicatively earn base salaries commonly ~$90k-150k depending on role and seniority, with total compensation higher once bonuses are included. Concentrated in financial centers.
Pass rate: Part I ~55-56% and Part II ~52% in 2024 (GARP). Recent ranges run roughly 45-55% (Part I) and 50-60% (Part II); 2025 figures not yet fully published.
Indicative annual pay (USD), each role's typical band on a shared scale.
Other markets (indicative)
| United Kingdom | ~£55k-110k |
|---|---|
| Canada | ~CA$90k-150k |
| Germany | ~€65k-110k |
Jobs that often ask for it:
- Risk Analyst
- Market Risk Manager
- Credit Risk Manager
- Risk Director
- Chief Risk Officer
Is it worth it?
Worth it for a career in risk management, where it is the recognised specialist credential and pairs well with a CFA or a quantitative background. It is less relevant if your target is general investment analysis (CFA) or accounting (CPA/ACCA/CMA).
Not sure this is the right exam for you? Compare your options with the Exam Finder.
Compare FRM with other exams
Independent, like-for-like comparisons to help you choose the right one.
What to do next
The FRM targets risk management. If you want broader investment analysis, compare it with the CFA; for corporate finance, with the CMA.
On exam day
Computer-based at test centres in a few windows each year. Part I is 100 multiple-choice questions in 4 hours; Part II is 80 multiple-choice questions in 4 hours.
Keeping your certification
The certification does not expire. GARP offers a voluntary continuing-professional-development (CPD) programme for certified FRMs.
FAQ
- FRM or CFA?
- The CFA is broader (investment analysis and portfolio management); the FRM is the specialist credential for risk management. If you want a risk career, the FRM is more targeted; many people in risk hold both, since the foundations overlap.
- How hard is the FRM?
- Demanding. Both parts are quantitative and historically only around half of candidates pass each part. The challenge is the breadth of risk topics plus the maths, not memorisation.
- How long does it take to study for the FRM?
- Most candidates spend roughly 200-240 hours per part. The two parts are often completed over about a year, since they are offered in a few windows each year.
- Do I need work experience for the FRM?
- Not to sit the exam. To be certified you must submit two years of relevant risk-related work experience within five years of passing Part II.
- Does the FRM expire?
- No. The certification does not expire, though GARP runs a voluntary continuing-professional-development programme.
- Can I take both FRM parts on the same day?
- Yes, Part I and Part II can be taken on the same day, but Part II is only graded if you pass Part I. Many candidates sit them in separate windows.
- What jobs does the FRM help with?
- Risk analyst and risk manager roles across market, credit, operational and liquidity risk, in banks, asset managers, regulators and corporates.
Related exams
- CFA Level I (CFA Institute) - CFA Institute
- CFA Level II (CFA Institute) - CFA Institute
- CMA (IMA) - IMA (Institute of Management Accountants)
Free study resources
- GARP FRM Candidate Guide - free overview of the FRM Program, curriculum and exam logistics ↗
- GARP FRM Learning Objectives and Study Guide - free documents listing the knowledge domains, required readings and individual learning objectives per topic ↗
- GARP Learning Platform (Part I) - complimentary for Part I candidates, with the curriculum, practice questions and performance tracking online ↗
- GARP official full-length practice exams - two complimentary practice exams included with registration (Part I and Part II) ↗