FRM course | A comprehensive guide to knowing all about it!

FRM Course | An overview

The Financial Risk Manager (FRM) is a well-known professional title authorized by the Global Association of Risk Professionals (GARP) for professionals specializing in risk evaluation in banks, insurance companies, and accountancy firms. The FRM course assists you in gauging your skills such as controlling, assessing, and managing market risk, credit risk, and other financial hazards. Read the blog to know more if you are starting fresh in this field with an FRM course.

What is Financial Risk Management (FRM)?

Candidates who complete their FRM Certification Program are certified FRM professionals by the GARP authorities. The FRM course is recognized by organizations on a global scale.

Because of the rapid pace with which the industry continues to transform, the need for specialists who manage risk, money, and investments is on the rise. The FRM test is a practice-oriented exam with two sections. The questions in the FRM course connect theory to practice, which equips the professionals to handle real-world situations.

FRM course eligibility

The council holds a certification test for financial risk management twice a year. You, too, can achieve this certificate depending on your qualifications and exam scores. Interested candidates can take the FRM Certification Exam in May and November. There are no educational or professional criteria to take the FRM course, making everyone eligible to take the exam.

Candidates who fulfill the FRM Exam’s general requirements can be eligible for certification. The only way to complete the FRM certification is to follow the instructions below.

• You should have passed Part I of the exam.
• Post that, you should complete the FRM Exam Part II within four years of completing Part I.
• You must have two years of full-time professional financial risk management experience.

FRM course syllabus

The syllabus of the FRM course is into two parts. 

FRM Part I	FRM Part II
Risk Management Foundation	Credit Risk Management
Quantitative Analysis	Integrated Risk Management
Valuation and Risk Models	Risk and Investment Risk Management
Financial Markets and Products	Market Risk Management

Exam format of FRM course

The exam format of the FRM course is as follows – 

• The FRM Test includes multiple-choice questions with four response options.
• The language of the paper is English, and the exam is held at 90 testing centers throughout the world.
• The FRM part 1 and part 2 tests are on the third Saturday in May and November.
• There are no penalties for incorrect responses.
• The FRM committee decides the passing marks for each year.

The scope of an FRM course

Banks, consultancy firms, asset management firms, insurance firms, technology businesses, and non-financial firms are all looking for Financial Risk Management professionals. 

Candidates can enroll in an FRM course from any nation and begin their careers anywhere in the world. We have listed the many jobs that an FRM professional can opt for. They are as follows – 

• Risk Management Consultant
• Operational Risk Analyst / Manager
• Enterprise Risk Analyst / Manager
• Commercial Risk Analyst / Manager
• Credit Risk Analyst / Manager
• Market Risk Analyst / Manager
• Regulatory Risk Analyst / Manager
• Chief Risk Officer

Key takeaways

• The FRM accreditation provides you with an edge over your financial domain competitors.
• The FRM designation might be difficult to attain, but it can help you advance in your profession.
• Employers worldwide are looking for qualified FRMs because of their experience and abilities in financial risk management. 
• The FRM course provides students with cutting-edge skills in high demand in today’s industry, given the pace of company growth.
• If you can take calculated risks regularly, you can choose a career as a financial risk manager. Such expert professionals are skilled at working smoothly despite working under high stress and taking successful financial deals.
• Financial risk managers must also be comfortable with financial software, given the improvements in the industry operations. You must also have a thorough awareness of both the market’s current situation and how they are expected to function in the times to come.

That’s all for now! If you have any more questions about which program to choose, you can drop a comment below on reach out to us.

Liked this blog? Read: Chartered accountant | 7 Easy steps on how to become one!

FAQ’s

Q1. How many times can you attempt the FRM course?

Answer: There is no limit to the number of your FRM attempts.

Q2. What is the validity of an FRM certificate?

Answer: The validity of an FRM certificate is five years from the date of passing the exam.

Q3. Is there an age limit to opt for the course?

Answer: No, there is no age limit to opt for an FRM course.