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Everything You Ever Wanted to Know about Frm Part I

Updated on March 09, 2017

The Financial Risk Manager (FRM) designation, offered by Global Association of Risk Professionals (GARP) is the most respected and widely recognized certification for financial risk management. FRM certification is awarded after a candidate has passed two rigorous multiple choice exams (FRM Exam Part I and Part II) and demonstrated two years of relevant work experience. Candidates must take the FRM Exam Part I before taking Part II. Both the exams can be taken on the same day.

Exam Format

The FRM exams are intended to thoroughly assess a financial risk manager’s ability to measure and manage risk in a real-world environment.

  • The FRM exams are administered on a single day twice a year, on the third Saturdays in May and November.
  • The FRM exams are administered on paper.
  • All questions are multiple choice; each question has four answer choices.
  • There are no penalties for wrong answers.
  • The questions in the exams are structured in the context of situations that financial risk managers face every day.
  • The information needed to answer each question is contained within the question or vignette.

FRM Part 1 Exam

The Part I exam is administered on FRM exam days in a single four-hour session from 8:00 am to 12:00 pm.

The exam consists of 100 multiple-choice questions, and tests a candidate’s knowledge base in four main topic areas, weighted as follows:

  • Foundations of Risk Management 20%
  • Quantitative Analysis 20%
  • Financial Markets and Products 30%
  • Valuation and Risk models 30%

Important Dates & Fees

  • Enrollment (payable once on initial registration)- $400
  • Early registration Jan 31, 2017- $350
  • Standard registration Feb 28, 2017- $475
  • Late registration Apr 15, 2017- $650
  • Scholarship Deadline Feb 29, 2017
  • Deferral Deadline Apr 15, 2017
  • Change Exam Site Deadline Apr 15, 2017

Exam Date May 20, 2017

Important things to know

  1. Review curriculum changes of FRM Part 1.
  2. Prepare a study plan. We recommended Study Plan for FRM Part 1 May 2017.
  3. Review GARP Exam Policies.
  4. Download the 2017 FRM Learning Objectives.
  5. Review GARP Frequently Asked Questions.

Study Material

  1. FRM Exam Part I Books
    We highly recommend this collection of gems collated by GARP itself. This beats every other study material on the market hands down, except the next one.
  2. FRM Exam Part I eBooks
    Only thing better than the FRM Exam Part I Books are the eBooks - easy to carry anywhere on your phone or tablet, easy to highlight, easy to review your highlights and they're way cheaper.
  3. Options, Futures, and Other Derivatives by John C. Hull
    This is required reading in most B-schools and is a must have for any CFA/FRM candidate or finance practitioner.
  4. Financial Risk Manager Handbook by Philippe Jorion
    This book used to be what FRM Exam Part I books are.
  5. Wiley Study Guide for FRM Part I
  6. Schweser Study Package
  7. Bionic Turtle

Practice Material

Successful candidates cite Practice as more important than studying. Too many smart and hard-working candidates fail these exams due to lack of adequate practice. Regular practice is the biggest differentiator between successful and unsuccessful candidates.

  1. 2017 FRM Practice Exam Part I
    Based on a sample of questions from previous FRM Exams, this full-length practice exam is representative of the questions candidates will see in the 2017 FRM Exams. Highly recommended.
  2. PrepSmarter
    PrepSmarter is the most advanced, continuously adaptive, learning engine for CFA and FRM exams. It is a great supplement to your favorite instructor or study material while preparing for these tough exams.

My take: Enrol in daily practice with PrepSmarter and take GARP's 2017 FRM Practice Exam Part I

Prep Providers

While the FRM is a self-study program, some candidates may prefer more hands-on guidance in their studying. Exam Preparation Providers are third-party services that assist with exam preparation. Here is a list of 2017 Exam Preparation Providers

My take: To conquer FRM, all you need is great study material and grit. GARP has compiled a list of great study material. You need to have your own grit. No prep provider can help you with either of these.

FRM is a great credential to have and it is very straightforward to obtain. Just get the books and enroll in a practice platform and you're good to go.

Best of luck.

© 2017 Abhimanyu Katoch

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