FRM Part 1 – Exam Pattern, Dates, Fees, Syllabus & Eligibility [2024 Update]

The Financial Risk Manager (FRM) is a certification provided by the Global Association of Risk Professionals (GARP). It is a globally recognized professional credential that aims to equip individuals with the necessary skills and expertise to identify, manage, and alleviate financial risks in diverse industries.

As an FRM Part 1 candidate, you are on the right path to gaining a globally recognized professional certification that can significantly boost your career prospects. This comprehensive guide will provide you with everything you need to know about FRM Part 1, from understanding the certification to exam preparation strategies and registration details. Let’s dive in!

FRM Part 1 Exam Overview

Exam Format

The FRM Part 1 exam is a computer-based test consisting of 100 multiple-choice questions to be completed within four hours.

Content Areas

The FRM curriculum is divided into four main areas. They’re listed blow along with their weightage:

  1. Foundations of Risk Management (20%): This section covers the fundamental principles and concepts of risk management, including the risk management process, governance, and various risk types.
  2. Quantitative Analysis (20%): Quantitative Analysis focuses on the statistical and mathematical techniques used in risk management.
  3. Financial Markets and Products (30%): This section delves into the financial instruments and markets that risk managers encounter, such as bonds, equities, derivatives, and foreign exchange markets.
  4. Valuation and Risk Models (30%): The Valuation and Risk Models section covers the techniques and models used to value financial instruments and measure risk exposure.

Preparing for the FRM Part 1 Exam

Proper preparation is the key to FRM Part 1 success. Here are some valuable resources and tips to help you create an effective study plan:

Study materials and resources

  • GARP official books: The FRM Learning Objectives and the FRM Handbook are essential resources provided by GARP. These materials cover the exam content in depth and should be your primary source of study.
  • Third-party study guides and materials: Providers such as Schweser and Bionic Turtle offer comprehensive study guides, summaries, and practice questions to supplement your preparation.
  • Online courses and webinars: Many online platforms offer FRM Part 1 courses, webinars, and video lectures, which can be helpful if you prefer a more structured learning approach.
  • Practice exams: Regularly taking practice exams will help you gauge your understanding of the content, identify weak areas, and improve your test-taking skills.

Tips for effective learning and retention

  • Active learning: Engage in active learning techniques such as note-taking, summarizing, and teaching others to improve your understanding and retention.
  • Review and revision: Periodically review and revise the content you’ve learned to reinforce your memory and minimize the chances of forgetting crucial information.
  • Importance of practice exams and mock tests: Taking practice exams and mock tests is crucial to understanding the exam format, identifying areas for improvement, and building confidence in your test-taking abilities.
  • Time management strategy: Develop a time management strategy for the exam, such as allotting a specific amount of time per question, and practice it during mock tests. This approach can help in preventing excessive time spent on challenging questions, enabling you to allocate enough time to finish the entire exam.
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Registration and Exam Dates for the FRM Part 1 Exam

  • Registration process – Register for the FRM Part 1 exam through the GARP website by creating an account, submitting the required information, and paying the exam fee. Early registration discounts are available, so plan accordingly to save on costs.
  • Exam dates and deadlines – FRM Part 1 exams are offered twice a year, in May and November. Make sure you’re aware of the registration deadlines and choose an exam date that allows you ample time for preparation.
  • Exam day requirements and guidelines – Familiarize yourself with GARP’s exam day requirements, such as the acceptable forms of identification and the items you’re allowed to bring into the testing center. Prepare these materials in advance to avoid any last-minute issues.

FRM Part 1 Exam Fees

The FRM Part 1 exam fees are structured in a tiered format, with costs varying depending on when you register for the exam. Here’s a breakdown of the fees associated with FRM Part 1:

  • Early Registration Fee: If you register during the early registration period, you’ll benefit from a discounted exam fee. The early registration fee for FRM Part 1 is typically around $600.
  • Standard Registration Fee: After the early registration period ends, the standard registration fee applies. For FRM Part 1, the standard registration fee is usually around $800.

In addition to the exam fee, you’ll also need to pay a one-time enrollment fee of $400 when you register for your first FRM exam (Part 1 or Part 2).

Note – These fees are approximate and may change slightly from year to year.

FRM Part 1 Exam Results & Pass Rates

  • Passing Score and Pass Rates: FRM Part 1 pass rates have historically ranged from 40% to 60%. GARP does not provide a specific passing score, as it is determined based on the overall performance of all candidates.
  • Receiving and interpreting your results: Your FRM Part 1 exam results will be emailed to you approximately six weeks after the exam. You will receive a pass or fail status and a quartile ranking for each content area, which will help you understand your performance relative to other candidates.
  • Planning for FRM Part 2: After you FRM Part 1, start preparing for FRM Part 2 as soon as possible. It will help you maintain your zeal and maximize your chances of success.

FRM Part 1 Marking Scheme

Understanding the marking scheme for FRM Part 1 can help you better prepare for the exam and develop effective test-taking strategies. Here’s an overview of the FRM Part 1 marking scheme:

  • Negative Marking: FRM Part 1 consists of 100 multiple-choice questions, each with four answer choices, as discussed earlier in the blog. The exam duration is four hours, and there is no penalty for incorrect answers. Thus you should attempt to answer all questions.
  • Score calculation: GARP does not disclose the exact methodology used to calculate FRM exam scores. However, we know that FRM exam uses a reference based approach, which means that the passing score is based on the overall performance of all exam candidates, and not on basis of a predetermined percentage or fixed score.

Jobs and Salary after FRM Part 1

While passing FRM Part 1 alone does not grant you the full FRM certification, it can still signal your commitment to acquiring risk management knowledge and skills, making you more attractive to potential employers. Here’s a closer look at the job prospects and salary expectations after passing FRM Part 1:

  • Risk Analyst: Risk analysts identify and assess potential risks affecting an organization’s performance, develop risk mitigation strategies, and monitor risk management practices. Average salaries are –
    India – ₹6 lakh (Approx)
    Global – $60,000 to $80,000
  • Credit Risk Analyst: Credit risk analysts assess the creditworthiness of borrowers by analyzing financial data, credit history, and market conditions. Average salaries are –
    India – ₹7 lakh (Approx)
    Global – $65,000 to $85,000
  • Market Risk Analyst: Market risk analysts focus on potential losses from financial market fluctuations, such as interest rates or foreign exchange rates. Average salaries are –
    India – ₹8 lakh (Approx)
    Global – $70,000 to $90,000
  • Operational Risk Analyst: Operational risk analysts identify, assess, and manage risks from an organization’s internal processes, systems, and people. Average salaries are –
    India – ₹6 lakh (Approx)
    Global – $60,000 to $80,000
  • Risk Management Consultant: Risk management consultants provide expertise and advice on identifying, assessing, and managing financial risks. Average salaries are –
    India – ₹10-12 Lakh (Approx)
    Global – $75,000 to $100,000

Please note that the salaries provided are average estimates and can vary significantly depending on factors such as industry, job role, experience, and location. While the FRM certification is an asset in these roles, employers will also consider additional qualifications, experience, and skills.


Proper preparation for the FRM Part 1 exam is essential for success. By understanding the certification, dedicating sufficient time and effort to your studies, and employing effective exam strategies, you can significantly increase your chances of passing.

Use this comprehensive guide to help you navigate your FRM Part 1 journey and lay the foundation for a rewarding career in financial risk management. Good luck!

Frequently Asked Questions

How long does it take to prepare for FRM Part 1?

The recommended study time for FRM Part 1 is approximately 200-300 hours, depending on your background and familiarity with the topics

What is the passing rate for the FRM Part 1 exam?

The pass rates for FRM Part 1 have historically ranged from 40% to 60%.

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