Themellion

The FRM Exam consists of two parts—Part I and Part II—that are both offered twice a year on the third Saturday of May and November. Part I is an equally-weighted 100 question multiple-choice exam offered in the morning of the Exam day and Part II is an equally-weighted 80 question multiple-choice exam offered in the afternoon of the Exam day. Both Part I and Part II each have a maximum allowable time of four hours for completion.

It is important to note that Part I and Part II of the FRM Exam must be passed sequentially. Therefore, while it is possible to sit for both parts of the examination on the same day, a candidate must receive a passing score on Part I before GARP will mark his or her Part II examination.

Part I of the FRM Exam covers the fundamental tools and techniques used in risk management and the theories that underlie their use. It consists of four modules, specifically: (a) Foundations of Risk Management, (b) Quantitative Analysis, (c) Financial Markets and Products, and (d) Valuation and Risk Models.

Part II of the FRM Exam further applies the tools and techniques covered in Part I and delves more deeply into major sub-areas of risk management. It consists of five modules: (a) Market Risk Management, (b) Credit Risk Management, (c) Operational and Integrated Risk Management, (d) Risk Management and Investment Risk Management, and (e) Current Issues in Financial Markets.