FRM Practice Test

Financial Risk Manager – FRM Practice Test

The Global Association of Risk Professionals (GARP) has a professional designation called Financial Risk Manager (FRM). The GARP FRM accreditation is widely regarded as the gold standard for GARP financial risk managers who work in financial markets. Candidates must pass two tough exams and work two years in the field of risk management to get the FRM Risk Management certification.

What are the Financial Risk Management jobs? FRM jobs for big banks, insurance companies, accounting firms, regulatory agencies, and asset management organizations, and have specific understanding in risk assessment. 

An FRM identifies threats to an organization’s assets, earning capacity, or success. FRMs operate in a variety of industries, including financial services, banking, loan origination, trading, and marketing. Many focus on areas such as credit or market risk.

The GARP FRM exam examines how risk management tools and strategies can be used to the investment management process. Market risk, credit risk, operational risk, and investment management are the major strategic disciplines of risk management that the FRM program follows. The Financial Risk Management exam, which is accepted in more than 90 countries, is meant to assess a certified financial risk manager’s competence to manage risk in a global setting.


FRM Practice Exams

The 2021 FRM Practice Exam includes sample FRM questions to help you prepare for the exam. The GARP FRM Committee reviews the FRM curriculum every year to ensure that the FRM Exam remains a legitimate assessment of the knowledge and abilities required to manage financial risk. The Practice Exam now has two sections: a full-length version and a shorter version for assessment reasons, with 25 questions in Part I and 20 questions in Part II.


The Financial Risk Manager (FRM) Program

The questions are practical in nature and are based on real-life job situations. Candidates must be able to apply risk management concepts and methodologies to the day-to-day tasks of a risk manager.

Part 1 of the FRM test consists of 100 questions covering the following four subjects (in order of importance):

       • Foundations of risk management (20%)
       • Quantitative analysis (20%)
       • Financial markets and products (30%)
       • Valuation and risk models (30%)

Part 2 of the exam consists of 80 questions (weighted as follows) on the following topics:

       • Market risk measurement and management (20%)
       • Credit risk measurement and management (20%)
       • Operational risk and resiliency (20%)
       • Liquidity and treasury risk measurement and management (15%)
       • Risk management and investment management (15%)
       • Current issues in financial markets (10%)

FRM Certification Requirements

       • Pass the FRM Exam Part 1
• Pass the FRM Part 2 by December 31 of the fourth year of passing the FRM Part I
• Submit two years of full-time relevant financial risk management work experience

FRM Study Books

Candidates are strongly advised to study straight from official GARP FRM books (Financial Risk Management books) in order to pass the FRM Exam. These best FRM study material, which are updated every calendar year to ensure that they remain current and reflect any curriculum revisions to the subject, cover all of the texts and themes that make up exam. You can also read the handbook of Financial Risk Management (FRM handbook). This Financial Risk Manager handbook gives readers the opportunity to gain a thorough grasp of financial products and the mathematical models that underpin them, as well as to learn how to manage risks.

FRM Syllabus 2021

The FRM exam 2021 will be computer-based, with numerous windows available throughout the year, according to GARP. The FRM exam syllabus has not changed or been updated in any way, and the FRM registration dates for the 2021 sessions have been released.

Here’s the dates for November FRM exam dates 2021:

                                                          FRM Exam November Session 2021
Early FRM Exam Registration May 1, 2021 – July 31, 2021
Standard Exam FRM Registration August 1, 2021 – September 30, 2021
Exam Window Part 1 November 13- November 26, 2021
Exam Window Part 2 December 4-10, 2021

FRM Prep Course

Here’s the best FRM training course (FRM course) and FRM coaching program:

       • Best Overall: Bionic Turtle
       • Best Learning Platform: Wiley FRM Efficient Learning
       • Best Comprehensive Premium Package: Kaplan FRM Schweser
       • Best Value Premium Package: AnalystPrep
       • Best Low-Cost All-Inclusive Package: ApnaCourse

FRM Passing Score

The FRM exam result passing score is expected to be about 70%. Part I of the May 2019 FRM Exam had a success rate of 42% and Part II had a pass rate of 60%. Part I passed 46 percent of the time, and Part 2 passed 59 percent of the time in the November 2019 FRM Exam. Since 2013, the pass rates have been around 40% to 60%.

FRM Course Details & FRM Course Fees

If you want to test yourself by solving financial risks, becoming a qualified FRM holder is the right professional choice for you.

Course  FRM
Full form Financial Risk Management
Eligibility Minimum graduation
Duration Exams will be conducted twice in a year
Fee Offered for exam  $350
Course Type Certified Exam
Starting salary offered  INR 900,000
Advance Courses Advance Certificate in Financial Accounting, Advance Certificate in Financial Statement Analysis
Employment opportunities Market Risk Manager, Regulatory Risk Manager, Commercial Risk Manager

FRM Course Duration

It takes at least one year to finish both FRM tests, depending on the candidate’s dedication and focus. Candidates can take both Part I and Part II of the exam. The Part I exam is available in the months of May, July, and November. In addition, the Part II exam is administered twice a year, in May and December. The exams are computer-based tests (CBT).

The FRM test is valid for a period of five years from the date of registration. That is, during this time frame, the candidate must pass both tests, get two years of experience, and obtain the certificate.

Frequently Asked Questions


How Much Does the FRM Exam Cost?

Candidates who are new to the FRM must pay a $400 one-time enrollment GARP FRM fees. The typical registration fee or FRM exam fees for Part 1 is $750, and for Part 2 it is another $750. Candidates can earn a discounted pricing of $550 for Part 1 and $550 for Part 2 if they register early.

What is FRM Salary?

The FRM designation prepares you for career advancement as a financial professional. But how much money can you make? According to Payscale and Glassdoor, the salary of FRM might earn anywhere from $44,000 to $128,000 per year. A FRM certified professional can expect to earn between $55,000 and $211,000 per year, with managers and senior directors earning more.

Who can take FRM exam?

The exam is open to anyone who wants to take it. After passing two tough multiple-choice GARP exams (FRM Exam Part I and Part II) and demonstrating two years of relevant work experience, a candidate is awarded FRM certification. Part I of the FRM Exam must be completed before moving on to Part II. Certified FRMs are strongly urged to complete 40 hours of Continuing Professional Development (CPD) every two years in order to stay current with risk management best practices.

What is a vendor Financial Risk Assessment?

A vendor finance risk assessment, also known as a third-party risk assessment, is a method for assisting businesses in selecting and monitoring their business partners.

What is Bank Risk Management Certification?

This Certificate is designed to improve your knowledge, understanding, and skills in the area of bank risk management in the digital age, taking into account the different types of risks that arise from the nature of banking, the trends that are shaping emerging risks, and the implications for the future of bank risk management. You’ll improve your ability to see risk in a broader perspective throughout the bank, identify and manage risk in your personal function, and think forward and plan for the future.

What are the best Financial Risk Management course online?

       • DOT Compliance and Risk Management Control Systems by Udemy
       • Planning Risk Management by Udemy
       • Enterprise Risk Management 101 by Udemy
       • Advanced Risk Management by Udemy
       • Portfolio and Risk Management by Coursera
       • Risk Management for Supply Chain and Procurement Specialists by Udemy
       • Financial Engineering and Risk Management Part II by Coursera
       • Corporate Finance II: Financing Investments and Managing Risk by Coursera

Is FRM degree good?

FRM is an internationally recognized risk management designation without a doubt. It not only aids in the acquisition of necessary risk management skills and knowledge in certain areas.

Can FRM exam deferred?

What is the procedure for deferring? Log in to your account, navigate to “My Programs,” and select the Exam Setup option to delay an Exam until the following available exam month. To alter exam months, candidates must have a paid registration and may only do it once for a charge of USD 200.