The FRM (Financial Risk Manager) is the financial risk management certification awarded by GARP (Global Association of Risk Professionals). The exam has two computer-based parts: Part I (100 multiple-choice questions in 4 hours) and Part II (80 questions in 4 hours), offered in May, August and November.
What is the FRM certification?
The FRM demonstrates mastery of the tools used to measure and manage financial risk: market risk, credit risk, operational risk, liquidity risk and portfolio management. It is aimed at risk analysts and managers, professionals in banking, insurance and asset management, and students targeting these careers.
No degree is required to register. The FRM designation is only awarded after passing both parts and proving professional experience (see below).
Exam format: Part I and Part II
Both parts are multiple-choice exams taken on a computer at an approved test centre:
- Part I: 100 questions in 4 hours, about 2 minutes 24 seconds per question. It covers the core tools (statistics, financial products, valuation models).
- Part II: 80 questions in 4 hours, 3 minutes per question. It covers how these tools are applied to each type of risk.
There is no negative marking: a wrong answer costs nothing, so you should answer every question. Only certain financial calculators are allowed, including the Texas Instruments BA II Plus (and its Professional version) and the HP 12c (and its variants).
Both parts can be taken in the same exam window; Part II is then only graded if Part I is passed. Most candidates prepare for them one after the other.
Syllabus and topic weightings
Part I topic weightings (2026 syllabus):
- Foundations of Risk Management: 20%
- Quantitative Analysis: 20%
- Financial Markets and Products: 30%
- Valuation and Risk Models: 30%
Part II topic weightings (2026 syllabus):
- 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%
The syllabus is updated every year. In 2026, Current Issues covers topics such as artificial intelligence in risk management, private credit, geopolitical risk, crypto-assets and tokenisation.
Exam dates, registration and fees
GARP runs three exam windows a year, in May, August and November. Within each window, candidates choose their date and test centre.
Fees in 2026, in US dollars:
- programme enrolment fee: USD 400, paid once, when first registering for Part I;
- registration for each part: USD 600 during early registration, USD 800 during standard registration;
- deferral to the next window: USD 250.
In total, expect USD 1,600 (early registration) to USD 2,000 (standard registration) for both parts, excluding study materials. Registration deadlines for each window are published on the GARP website.
Results and pass rates
Results are released within eight weeks of the end of the exam window. They show whether you passed, with a quartile ranking in each topic compared with other candidates. GARP does not publish a fixed pass mark.
In November 2025, the pass rate was 47% for Part I and 50% for Part II. Over the long term, it is around 45 to 50% for Part I and 55% for Part II.
After the exam: becoming certified
After passing Part I, candidates have four years to pass Part II; after that, they must retake Part I.
To be awarded the FRM designation, they must then prove two years of full-time professional experience in a risk-related field (risk management, trading, portfolio management, audit, consulting, research…). This experience may have been gained before the exam or within ten years of passing Part II.
Sources
Information taken from GARP’s official website (garp.org, FRM section), checked in October 2026. Fees, dates and the syllabus change every year: check them on garp.org before registering.