FRM Part 1 Details: Exam Format, Tips, Registration Fees, and Pass Rates
Last Update On 2nd December 2024
Duration: 5 Mins Read
The FRM is an International degree that endeavours to produce professional financial risk managers and is issued by the GARP. FRM Part 1 is the first step toward FRM certification and this portion comprises the ideas as well as the tools employed in evaluating risks in the financial sector. In this article, we will go through the general information regarding the FRM part 1 details, such as the exam format, the cost, the passing rates and the efficient study schedules.
FRM Exam Format
FRM Part 1 is a 100-question multiple-choice exam, with a duration of 4 hours. The test encompasses four primary subject areas:
FRM Subject Weightages in Exam
- Foundations of Risk Management (20%)
- Quantitative Analysis (20%)
- Financial Markets and Products (30%)
- Valuation and Risk Models (30%)
FRM Part 1 Exam Preparation: Tips and Strategies
Study Materials and Resources
The actual FRM Part 1 syllabus belongs to the GARP, limited outside materials. Additionally, other third-party study providers include Schweser and Kaplan Schweser that provide a large package of materials, questions, and other necessary materials to prepare for the exam intensively.
Effective Learning and Retention Tips
- Start studying early: FRM Part 1 preparation should take a minimum of 200 hours to a maximum of 240 hours, and you should start the preparation process immediately after registering for the exam.
- Prioritize understanding over memorization: Paying major concern to the rationale of the formulas or meanings to be learnt rather than just cramming the formulas or meanings
- Practice regularly: Solve sample questions and past papers so that you are well acquainted with the type of tests that are set and the areas that you need to work on.
- Manage your time effectively: You should create a study schedule and try to divide your time properly to study all the topics of the exam.
FRM Level 1 Registration & Exam Dates 2024
The FRM Part 1 exam dates for 2024 are as follows:
- May 11-17, 2024
- August 9-10, 2024 (AM session only)
- November 9-15, 2024
The early registration deadlines are:
- May exam: December 1, 2023 – January 31, 2024
- August exam: March 1 – April 30, 2024
- November exam: May 1 – July 31, 2024
The standard registration deadlines are:
- May exam: February 1 – March 31, 2024
- August exam: May 1 – June 30, 2024
- November exam: August 1 – September 30, 2024
FRM Level 1 Exam Fees
The registration fees for the FRM Part 1 exam vary depending on the timing of registration. The following is a breakdown of the fees:
Early Registration:
- Exam Registration Fee: Around $600
- One-time Enrollment Fee: $400
Standard Registration:
- Exam Registration Fee: Around $800
- One-time Enrollment Fee: $400
The $400 enrollment fee is paid only once and applied when sittingsit for your first FRM exam whether as a part 1 or part 2. This fee is for administrative purposes and relates to your FRM candidacy; it is non-refundable, and the figure is to be paid only once.
Of course, one may note that the given fees may slightly vary; that is why it is advisable to visit the GARP website and find out the current fees for FRM Part 1 examination.
FRM Part 1 Exam Result and Pass Rate
In general, the results of FRM Part 1 exam are announced in approximately one and a half month after the examination has been sat. A pass or a fail dDepending on the performance of the candidates, the assessing bodies provide them with either pass or a fail.
Quartile scores In each type of content, a quartile number is given to each candidate, which either allows or directs the assessor about the candidate’s situation among other candidates.
FRM Part 1 Certification Cost
The total cost for FRM Part 1 includes the one-time enrolment fee of $400 and the exam registration fee, which ranges from $600 (early registration) to $800 (standard registration).
Jobs after Clearing FRM Level 1
India
In India, FRM Part 1 holders can typically find roles as risk analysts, with average salaries ranging from ₹6 lakh to ₹8 lakh per annum.
Abroad
Globally, FRM Part 1 holders can explore opportunities as risk analysts, with average salaries ranging from $60,000 to $80,000 per year.
Salary after Clearing FRM Level 1
The average salary for FRM Part 1 holders can vary depending on the location and job role. Here’s a breakdown of the average salaries in India and abroad:
India
Currently, the annual remuneration of FRM part I certified risk analyst in India range from ₹600, 000 to ₹800, 000 per year. However, it should be noted that actual FRM salary may depend more on the candidate, and his or her experience, the industry the job is in, and the geographical area where the position is based.
Abroad
On an international basis, the average remuneration area of people who have acquired the FRM Part 1 certification is $60,000 to $80,000 per annum. Still, this can greatly depend on the country and the industry in which the employee is working.
FRM Parts 1 and 2: Should You Take Them Together?
While it is possible to take FRM Part 1 and Part 2 exams in the same year, it is generally recommended to focus on passing FRM Part 1 first before attempting Part 2. This allows you to build a strong foundation in the core risk management concepts and tools, which will then help you better understand and apply the more advanced topics covered in FRM Part 2.
Conclusion
FRM Part 1 is a crucial step in the FRM certification process, focusing on the fundamental tools and concepts of financial risk management. By understanding the FRM exam format, registration fees, and pass rates, as well as implementing effective preparation strategies, candidates can increase their chances of success in this challenging but rewarding certification program.
FAQ’s on FRM Part 1 Details
Is FRM Level 1 difficult?
The FRM Part 1 exam is known for its challenging nature, with historical pass rates ranging from 40% to 60%. The exam covers a wide range of topics, and candidates need to have a strong understanding of the core concepts to perform well.
Is FRM tougher than CFA?
There is no definitive answer as to whether FRM is tougher than CFA, as both certifications have their unique challenges. However, the FRM Part 2 exam has been benchmarked to be equally difficult as passing all three levels of the CFA program.
Is 6 months enough for FRM Part 1?
While it is possible to prepare for FRM Part 1 in 6 months, it is generally recommended to allocate a minimum of 200-240 hours of study time. The depth and breadth of the exam topics make it challenging to cover everything in a shorter time frame, and candidates may benefit from a more extended preparation period.
What is the average salary of FRM Part 1?
The average salary for FRM Part 1 holders can vary depending on the location and job role. In India, the average salary for risk analysts with FRM Part 1 is around ₹6 lakh to ₹8 lakh per annum. Globally, the average salary range is typically $60,000 to $80,000 per year.
