In the increasingly complex and interdependent world of financial markets and products financial risk management has become essential to a company's strategy. Often a portfolio manager has a limited understanding of basic fixed income analysis, a quantitative analyst has little feel for daily movements of foreign exchange rates, or a treasurer doesn't know the relevant accounting rules for derivatives. The Financial Risk Manager (FRM) exam is designed to meet the needs of risk professionals and to allow them to make better decisions for their company and its investors.
The FRM exam is organized by GARP (Global Association of Risk Professionals). In 2017, the FRM Exams Part I and Part II will be offered on 20 May and 18 November. Each exam part lasts 4 hours, with a 120 minute break in between. The FRM Exam Part I consists of 100 multiple-choice questions, while the FRM Exam Part II has 80 multiple-choice questions. Candidates can sit for both FRM Exams (Part I and Part II) on the same day.
The exam center for Switzerland is in Zurich. The first FRM exam took place in 1997. Since then more than 30,000 individuals have successfully completed the FRM program. The exam requires basic analytical skills, general knowledge and intuitive capacity gained through ecperience in capital markets. It is based on the core body of knowledge which contains the following topics:
FRM Exam Part I
|Foundations of Risk Management Concepts||20%|
|Financial Markets and Products||30%|
|Valuation and Risk Models||30%|
FRM Exam Part II
|Market Risk Measurement and Management||25%|
|Credit Risk Measurement and Management||25%|
|Operational and Integrated Risk Management||25%|
|Risk Management and Investment Management||15%|
|Current Issues in Financial Markets||10%|
More information about GARP and the FRM exam can be found at www.garp.com.