FRM: Course Details, Eligibility, Admission, Fees, Exams

Sakshi Chaudhary

FRM course is a year-long certificate course that deals with the management of financial, operation and commercial risk. Financial Risk Management is a globally appreciated symbol for those who manage risk. Upon the completion of the FRM course duration, the students can take up job roles such as Market Risk Manager, Regulatory Risk Manager, and Commercial Risk Manager.

About FRM Course 

FRM full form is Financial Risk Management. The FRM course is well regarded, one of the flagship certifications for financial risk professionals, along with the PRM offered by the Professional Risk Managers' International Association. FRMs possess specialised knowledge in assessing risk and typically work for major banks, insurance companies, accounting firms, regulatory agencies, and asset management firms.

Eligibility Criteria for FRM

There is no strict FRM eligibility for the students. As a matter of fact, even final-year graduation students are eligible for the FRM Part I exam. Along with clearing both levels of the FRM certification, students should also have a minimum of two years of work experience and be active members of the GARP.

For gaining FRM admission, it is vital that the students research the eligibility requirements. The FRM course eligibility requirements are very simplified making it easy for the students to pursue this stream. 

Who Should Pursue FRM Course?

The goal of the MBA in Sales and Marketing is that deals with the management of financial, operational and commercial risk. When selecting FRM Certification, those who wish to break new ground in their field should think about the following factors.

• Candidates must really be interested in the topic.
• Students having a Bachelor's degree in a relevant field should be able to enrol in the course.
• Candidates can enrol in the course to hone and improve their Sales and Marketing abilities after at least a year of relevant experience.

When To Do FRM Course?

FRM offered at both the national and international levels offers professional opportunities across numerous sectors. The following are a few elements that influence an FRM:

• It is best to have experience as a Risk Manager, Market Risk Manager, etc. for at least a year before pursuing an FRM. Gaining weight while being welcomed is a good thing, even if it is not required.
• If candidates want to pursue an FRM abroad, they must have between three and five years of work experience.
• Before enrolling in an FRM, it is advisable to have some resources on hand and job experience due to the high cost of the programme.

 FRM Certification Process

The FRM certification admission can be primarily done through online methods. The FRM course duration is a minimum of 1 year to complete both exams of the FRM course. The Part I exam is offered in May, July, and November and the Part II exam is offered in May and December.

Anyone can take this exam as there are no educational or professional requirements to appear for the FRM Exam. Given below are general methods for the FRM admission process:

• Candidates must enrol in GARP, create a registration ID, pay the FRM fees, and register for the FRM Exam Part I using the "new candidate" pathway.
• The applicants will have access to their GARP accounts and be able to book their tests once the FRM fees have been successfully paid.
• Candidates can select from more than 100 test locations worldwide for the specific exam date of application.
• The candidate's GARP account can be used to access online study materials for FRM. Sample papers, official texts, and study manuals fall under this category.
• In addition to the FRM fees, the cost of the FRM books contributes to the overall cost of FRM certification.
• To choose to take the FRM Exam Part II, candidates must pass the FRM Exam Part I. The Part II scores will only be computed if a candidate passes the Part I exam if they choose to take both tests on the same day.
• Candidates have up to 4 years to completely complete FRM Part II after passing FRM Part I.
• Candidates must provide documentation demonstrating at least two years of full-time employment. Within five years of the date of their Part II FRM exam, the candidate must finish this.
• Once the required work experience has been confirmed, candidates will be certified. Candidates can maintain the value of their FRM credential by continuing their professional development.

FRM Exam

Below listed are some of the general guidelines of the FRM examinations: 

Level 1

Candidates need to concentrate on the required Part I important tools and concepts to clear the exam. 

• There are 100 MCQs to be solved within 4 Hours.
• 20% of the questions are on the foundation of the risk management
• 20% of the questions are on quantitative analysis
• 30% of the questions are on financial markets and production
• 30% of the questions are on valuations and risk modes

Level 2

• The FRM Exam Part II centres on the practical application of risk management tools involved in Part I to particular areas of risk management like credit risk, market risk, and operational risk. 
• There will be 80 multiple-choice questions to attempt within 4 Hours of the exam duration. 
• 25% of the questions are on market risk measurement and management
• 25% of the questions are on credit risk measurement and management
• 25% of the questions are on the operational and integrated risk management
• 15% of the questions are on risk management in investment management
• 10% of the questions are on the current issues in the financial market

Study FRM in India

There are many institutes around the country that provide coaching for the FRM course. Listed below are some of the popular institutes in India, that provide FRM course coaching to aspirants. Aspirants have many options to choose from in terms of the best FRM course as per their preferences.

Below is the list of the 10 best FRM Institutes in the country:

Study FRM Abroad

FRM courses can be pursued in India and abroad. The certification is widely acknowledged all over the globe, making it possible for students to pursue it abroad. Students can enrol in universities to study FRM Canada, FRM London, Australia and more. Below are some of the top FRM colleges abroad and their duration:

The table below contains the list of some of the best colleges abroad for FRM:

Fee Structure for FRM

FRM course fees in India needs to be paid for registration for the exams. Candidates have to pay the FRM exam fees for registration and that would be included with the amount of the exam.

The average FRM fees in India are given below:

Part 1 FRM Registration Fees

Part 2 FRM Registration Fees

Syllabus and Subjects for FRM

The two FRM courses in India have different syllabuses, with Part II covering themes related to the usage and application of these instruments, and Part I covering a variety of techniques used in financial risk assessment.

Listed below are some subjects that the students get a chance to study during the FRM course in India are:

• Backtesting VaR
• ES and other coherent risk measures
• Modelling dependence: correlations and copulas
• Term structure models of interest rates
• Volatility: smiles and term structures

How To Maintain FRM Certification

GARP FRM goes hand in hand, with the Global Association of Risk Professionals is a not-for-profit organisation and a membership association for risk managers. Its services include setting standards, training, education, industry networking, and promoting risk management practices.

GARP offers several foundational and certificate programs, the best known of which is the Financial Risk Manager (FRM) certification.

The FRM certificate is initially valid for a period of 2 years. In order to maintain the value of the certification, candidates are advised to participate in continuing professional development (CPD). FRM certificate holders are required to earn and document at least 40 credits of CPD every two years in order to maintain their FRM certification status and certificate value.

Read More: FRM Syllabus and Subjects

Why Choose FRM Course?

When students decide to pursue the FRM qualification, they should research FRM course details to ensure that they know the course they are enrolled in. Some of the common queries that students encounter are, “What is FRM meaning?”, "What is FRM" and "Why FRM?". To understand the answer to these questions, we can make it simpler by breaking it down into the following three short questions:

What is FRM All About?

The FRM course in full form is Financial Risk Management. The Global Association of Risk Professionals, or GARP, offers this certificate and offers exam locations in more than 100 cities worldwide. In terms of return on investment (ROI), the FRM certification is likewise regarded as one of the best in finance. It is also recognised to result in respectable FRM pay and highly sought-after employment opportunities.

What Does an FRM Graduate Do?

The financial risk manager certification programme is a top-tier designation that gives you specific knowledge and abilities in the field of financial risk management. It provides a wide range of employment choices in risk management, trading, structuring, and modelling, among other fields. 

Financial Risk Analyst: The formalisation of risk management inside an organisation is the responsibility of a financial risk analyst. This entails making business decisions and facilitating the process of taking risks. Credit risk analysts evaluate the company's exposure to the danger of its customers defaulting on loans or not paying for goods or services.

Reasons Why FRM Can Fetch You a Rewarding Career?

Because of their comprehensive expertise and high professional standards, FRMs are now required across all industries for managing risk, investments, and money. FRM certificate holders can work in a variety of organisations and sectors, and they will fill some of the key job roles in many organisations.

Demand: The FRM salary in India is generally in the range of 6 to 24 lacs per annum. Job roles that offer the top FRM salary include positions like risk manager, business analyst and associate VP of market risk, amongst others.

Read More: FRM Jobs and Scope

FRM Course Comparison

Below is a comparison of the FRM course with other courses:

FRM vs CFA

The table below showcases the differences between FRM and CFA:

Read More: CFA

FRM vs PRM

The table below showcases the differences between FRM and PRM:

Preparation Tips for FRM Course

There are many tips that students must note when deciding to pursue an FRM degree. Some important preparation tips are listed below to ensure that the students crack the course and pass the exams without any hurdles. 

Read and Practice More: Being up to date with the syllabus every day is very important. Practising and reading more will help the student be thorough with the syllabus and do well in the exams.

Have Intrinsic Knowledge and Interest in Subjects: Having intrinsic knowledge about the subject and having the same interest will keep the student motivated to learn more than what's in the syllabus.

Revise Methodically: Revising from time to time can be a key to scoring well in the final exam. Keep revising regularly and understand the subject properly. Revision is the key to scoring good marks.

Scope For Higher Education

There are many higher study options available for graduate students after an FRM degree, which can help them better understand the subject. Also, gaining more education can help students pursue a career in research if they are interested in it. Listed below are some of the popular higher education options available for students:

• MBA
• CFA
• CMA

Salary of an FRM Graduate

Factors that can affect FRM salary in India include experience, geography, and the industry they are working in. Graduates can increase their salary by doing internships and work placements as it would add to their experiences. The average FRM job salary for graduates is around INR 5-7 LPA [Source: Glassdoor].

Read More: FRM Salary

Career Options After FRM Graduation

There are plenty of jobs available for students looking for a career in Humanities and Social Sciences. The job roles will differ based on the specialisation that one has opted for. FRM course graduates have abundant job opportunities with good salary packages that include the following fields:

• Risk Quantification Manager
• Enterprise Risk Manager
• Risk Manager
• Market Risk Specialists
• Credit Risk Specialists

Skills That Make You The Best FRM Graduate

FRM full form stands for Financial Risk Management. There are many complex and soft skills that FRM course graduates need to possess to succeed in their careers. These are not necessarily skills that students can get in a classroom setting. Instead, these are skills that are learned through experience. 

Therefore, students should always put in the effort to go out of their comfort zone and gain as much experience as possible. Some of these skills include:

• Quantitative Analysis Skills
• Research Skills
• Analytical Skills
• The Ability to Work Under Pressure
• Interpersonal Skills