FRM Exam 2024: Exam Structure, Date, Exam Windows & GARP Sections Covered Understanding the Job Role of a Financial Risk Manager FRM: Eligibility, Exam Structure, And Requirements Exam Dates and Windows What is GARP in FRM certification? Conclusion Schedule a call These days, every business faces various risks, ranging from market to credit, operational, and investment management risks. While several factors, like the state of the economy, the level of technology, or the level of infrastructural development, can reduce the risks to a great extent, they can never be fully eliminated. However, constantly dealing with several risk factors does not mean that organizations will start making reckless decisions; rather, it calls for proper risk evaluation and ensuring that organizations only take calculated risks by factoring in potential profits and losses. Key Takeaways FRM Exam 2024 FRM: Eligibility & Exam Structure FRM Exam Dates and Windows Understanding the Job Role of a Financial Risk Manager The modern business environment is witnessing the rising globalization and merger of various sectors. While this expansion has opened up various opportunities for all, it has also greatly increased the risks a business organization faces daily. Therefore, the Global Association of Risk Professionals (GARP) instituted a new designation, "Financial Risk Managers," to help business organizations better handle their risks. A financial risk manager is a dedicated employee who can properly evaluate and handle risks and ensure stability and safety within the business organization. Their main job responsibility is to assess the organization's various risk factors and formulate a strategy that reduces risk based on their evaluations. The main goal of lowering risk is minimizing losses and maximizing profits within an organization. Career ScopeA professional financial risk manager is needed by all business organizations, irrespective of their niche, size, and industry, as risk is a constant factor in business. Therefore, financial risk managers have great career scope in various economies and industries. However, some industries and sectors are still more rewarding for a professional FRM than others. These include: BankingFRM professionals are required to make strategies to mitigate credit, operational, and market risks, safeguarding financial portfolios from market volatility. InsuranceIn the insurance sector, FRM-certified experts are pivotal in evaluating and managing risks associated with diverse insurance policies. Their expertise ensures the company's financial stability while offering competitive services. Regulatory BodiesRegulatory bodies increasingly engage FRM professionals to ensure stability and resilience against unforeseen factors. It reflects the increasing importance of risk management in maintaining robust regulatory frameworks. FRM: Eligibility, Exam Structure, And Requirements The number of registered students for the FRM 2024 examination is higher than in previous years. This could be due to the increased relevance of financial risk management professionals. As more companies look to hire them, the overall enrollment in the examination has also gone up. It is, however, critical that the standards of the examination are top-notch, and this is why FRM 2024 has been divided into three major segments. The first two are academic examinations. On the other hand, the third and final segment relates to practical (compulsory) training to ensure that the students are able to apply the theoretical knowledge in real-life situations. Let’s talk about each of the parts in brief: Part IPart I can be best defined as a computer-based MCQ (Multiple Choice Question) examination that a student is expected to complete in a period of four hours. The exam is currently administered in American English and has three windows per year (May, August, and November). There are numerous test centers around the world where the test is conducted. Part I of the FRM exam in 2024 will primarily evaluate students' proficiency in risk management tools, covering:Fundamentals of risk management conceptQuantitative analysisFinancial markets and productsValuation and risk modelsStudents should be aware of complex math problems similar to those in UG or other graduate-level finance courses. In addition, a conceptual understanding of different topics is necessary. Candidates are expected to know about different formulas and calculations, and their application has to be impeccable. The examination format does not allow for formula sheets during the exam. Part IIThe FRM Exam Part II is also a computer-based assessment; however, this has 80 multiple-choice questions, which is lower than Part I. Other than that, the language, time frame, and exam windows for Part II of the FRM exam 2024 are similar to those of Part I.Part II of the FRM exam in 2024 will primarily evaluate students' proficiency in risk management tools, covering:Market risk measurement and managementCredit risk measurement and managementOperational and integrated risk measurement and managementLiquidity and treasury risk measurement and managementRisk management and investment managementCurrent issues in financial marketsLike Part I of the FRM exam 2024, Part II's mathematical complexity resembles advanced undergraduate or introductory graduate-level finance courses, requiring students to be proficient in essential formulas and calculations and apply them accurately. And here, too, no formula sheets will be provided during the exam.However, students taking Part I and Part II exams on the same date should know that GARP will assess their Part II Exam only when they pass Part I. Practical TrainingThe last step in becoming a financial risk manager (FRM) is two years of professional work experience, including two years of pertinent work experience in finance. After successfully completing both Part I and Part II exams, candidates undergo this training as the concluding step toward attaining professional FRM status. Exam Dates and Windows The FRM exam in 2024 will take place three times during the year. While both Part I and II exams will be conducted during these windows, their dates may differ. Further, in instances where Part I and Part II will be conducted on the same date, the time or session for the attempt will vary. In such situations, Part I is generally conducted in the morning or AM session, while the Part II exam is conducted in the evening or PM session. Here is a tabular description of the various FRM exam 2024 dates for your knowledge:ParticularsFRM Part 1 exam dates: 2024FRM Part 2 exam dates: 2024May Attempt of FRM Exam 2024Exam Dates:May 11-17, 2024May 18-22, 2024Registration Opens:December 1, 2023December 1, 2023Early Registration Deadline:January 31, 2024January 31, 2024Registration Closes:March 31, 2024March 31, 2024August Attempt of the FRM Exam 2024Exam Dates:August 9–10, 2024 (AM session only)August 9–10, 2024 (PM session only)Registration Opens:March 1, 2024March 1, 2024Early Registration Deadline:April 30, 2024April 30, 2024Registration Closes:June 30, 2024June 30, 2024November Attempt of the FRM Exam 2024Exam Dates:November 9-15, 2024November 16–19, 2024Registration Opens:May 1, 2024May 1, 2024Early Registration Deadline:July 31, 2024July 31, 2024Registration Closes:September 30, 2024September 30, 2024 What is GARP in FRM certification? The Global Association of Risk Professionals (GARP) administers the Financial Risk Manager (FRM) certification, a globally recognized credential for risk management professionals. To achieve the FRM designation, candidates must pass two exams: Part I and Part II, with a recommended passing score of at least 70%.Exam registration is done through the GARP candidate portal, where candidates can select exam dates, and locations, and pay the registration fees. Early registration offers discounted fees, and it's advisable to register early to secure a spot. The 2024 update may include changes to exam content and structure, which can be tracked on the GARP website or the candidate portal.The FRM designation signifies expertise in risk management, enhancing career prospects in the finance industry. Registration fees vary, with Part I typically costing less than Part II. The GARP candidate portal also provides access to study materials, practice exams, and results tracking, making it an essential resource for FRM candidates.Staying updated with GARP's guidelines and utilising the portal effectively is crucial for success in the FRM certification process. Conclusion The number of students taking FRM courses has significantly increased recently. This is mainly due to the high demand for professional FRMs in various industries. However, given the extensive and rigorous nature of the course, students need a trusted learning partner to qualify for it. NorthStar Academy can be your perfect learning partner. NSA is a leading institute for commerce students pursuing professional courses like FRM. The academy has a record-breaking passing percentage, significantly higher than the industry average. It has also excelled at getting amazing results more promptly than others. For more information, contact NorthStar Academy on WhatsApp. Frequently Asked Questions How many times are FRM exams held? The FRM exam occurs three times a year. Can FRM be done in 3 months? FRM can be completed within three months as the exams are held three times a year, with each attempt having a three-month gap. Is FRM tougher than CFA? FRM and CFA are commerce-related exams, but they are still very different from each other. FRM focuses on risk management, while CFA's area of operation is managing assets and investments. So yes, their work is related; however, it is still very different. Therefore, the difficulty level of these two exams cannot be compared.
