What Is an FRM Exam? (Pass Rates & Salary)
The Financial Risk Manager (FRM) exam is a professional credential from the Global Association of Risk Professionals (GARP). It has two four-hour multiple-choice exams. Recent pass rates often fall near 45% for Part I and 55% for Part II, but vary by sitting. Certification also requires relevant work experience; it does not guarantee a job or salary increase.
If you are weighing study time against work, family, or other costs, it helps to know exactly what the FRM involves before you register. The key questions are practical: Can you take the exams? How hard are they? What does certification require? And what does the credential mean for pay?
I recommend treating the FRM as one part of a career plan, not as a promise of higher earnings. Below, I explain the exam structure, pass-rate context, study decisions, and ways to assess salary using evidence from the job market.
FRM Exam Overview: Eligibility, Format, and Pass Rates
The FRM is a professional risk-management credential, not a college degree. GARP sets its exam and certification rules. You do not need a specific major or college degree to sit the exams, but you do need to pass both parts and meet the work-experience requirement to earn the certification.
What are the two FRM exams like?
Part I tests the tools and ideas used to understand financial risk. Part II tests how those tools apply to risk types and financial institutions. Both exams use multiple-choice questions and last four hours, so you need both subject knowledge and the ability to work at a steady pace.
| Exam | Questions | Time | Main focus |
|---|---|---|---|
| FRM Part I | 100 multiple-choice questions | 4 hours | Risk foundations, quantitative analysis, financial markets and products, and valuation and risk models |
| FRM Part II | 80 multiple-choice questions | 4 hours | Market, credit, operational, and liquidity risk; treasury; investment risk; and current issues |
The question counts and topic outlines are set by GARP. Check GARP’s current curriculum and exam information before you plan, because exam details and materials can change.
What do FRM pass rates tell you?
Pass rates show the share of candidates who passed a particular exam sitting. They are useful context, but they do not predict your result. GARP publishes results by administration, and historical rates commonly fall around 45% for Part I and 55% for Part II. The rate can change from one sitting to another.
Do not read those figures as a fixed passing score or your personal chance of success. A pass rate describes a group of candidates, not your preparation, background, or exam-day performance. It also does not mean that the exam has a permanent pass mark equal to that percentage.
A sound way to use pass-rate data is to see the exams as demanding, then build a study plan around the official learning objectives and timed practice. Avoid choosing a test date based on a single past result.
FRM Curriculum, Exam Sequence, and Certification Requirements
The FRM has two exam parts and a separate work requirement. Passing both exams is not the same as completing certification. Candidates must also document relevant full-time professional work and meet GARP’s deadlines for passing Part II and submitting their experience.
What does each part cover?
Part I builds a base in risk measurement and financial concepts. Its curriculum includes quantitative analysis, which uses tools such as probability and statistics, and models used to value financial products and assess risk. Familiarity with finance, accounting, and math can help, but no particular degree is required.
Part II focuses on applying risk ideas in practice. Its areas include market risk, or the risk of loss from market changes; credit risk, or the risk that a borrower or counterparty fails to pay; and operational risk, or loss from failed processes, people, systems, or outside events. It also covers liquidity and treasury topics, investment risk, and current issues.
Use the current GARP curriculum as your study map. A course provider’s outline can help organize learning, but it should not replace checking the official topics and learning objectives.
What must you do to become certified?
To earn the FRM certification, you must pass both exam parts and submit two years of relevant full-time professional work experience. GARP must accept the experience as meeting its requirements. Passing the exams alone does not complete certification.
The timing rules matter:
- Pass Part II within four years of passing Part I.
- Submit the qualifying work experience within five years of passing Part II.
- Keep clear records of your role, duties, and dates so you can describe your experience when you apply.
If you are unsure whether a job counts as relevant experience, check GARP’s current guidance before relying on it. Do not assume that any finance job automatically qualifies.
Preparing for the FRM: Study Strategy, Costs, and Candidate Experience
Preparation works best when it starts with your target date, current knowledge, and available study hours. Review the official exam calendar and curriculum, check your background in quantitative topics, and budget for all likely expenses before registering. Fees and materials can change, so confirm current costs with GARP and any provider.
How should you plan your study?
A practical plan starts with the official learning objectives. Divide topics into weekly blocks, leave time for review, and use timed practice to find gaps. Candidates with less experience in statistics, probability, finance, or accounting may need more time with those basics before tackling harder applications.
Try this sequence:
- Assess your baseline. Review the topic list and try sample questions or a diagnostic test.
- Choose a realistic sitting. Compare the exam calendar with your work, school, and family commitments.
- Study by objective. Track which topics you understand and which still need practice.
- Practice under time limits. Use timed sets to build pacing and check your ability to apply ideas.
- Review errors. Write down why an answer was wrong, then revisit the related concept.
- Plan for contingencies. Consider the cost and schedule impact of a retake before registering.
I would not build a plan around a claimed universal number of study hours. Your prior knowledge, pace, and available time differ from another candidate’s. Use practice results and your weekly progress to adjust.
What costs should you include?
The total cost can include registration, exam materials, optional prep courses, travel if needed, and a retake. The exact amount depends on current GARP fees and your choices. Check the official registration information for the sitting you plan to take, and keep a budget buffer if your schedule or result could change.
Avoid financing preparation on the assumption that certification will produce a specific pay rise. The credential may support a career move, but employment and compensation depend on more than exam results.
Candidate scenarios: how the rules affect your plan
These examples are hypothetical and show how the requirements work; they are not reported candidate outcomes.
| Candidate situation | What to consider |
|---|---|
| A student with strong math skills but no finance job | They may sit the exams without a degree or specific job. They still need two years of qualifying full-time work to complete certification. |
| A working analyst planning both exams | They should map Part II within four years of passing Part I and check that their duties may meet GARP’s experience rules. |
| A candidate who passed both parts but has not submitted experience | They have not finished certification. They should review the five-year submission deadline and GARP’s instructions. |
The useful takeaway is to track exam deadlines and experience separately. Passing exams moves you forward, but it does not erase the work requirement.
FRM Career Pathways, Salary Evidence, and Employment Outcomes
FRM salary is not a set figure. GARP does not publish an official salary for certified professionals or promise a pay premium. Pay depends on factors such as location, experience, role, sector, employer, and total compensation, so compare local evidence rather than treating the credential as a salary quote.
What jobs can the FRM support?
FRM knowledge may be relevant to roles such as risk analyst, credit-risk analyst, market-risk analyst, and market-risk manager. The credential is one signal of knowledge; employers may also look for relevant experience, communication skills, data skills, and familiarity with tools used in the role.
A credential does not guarantee that an employer will hire you. Read current job postings in your target location. Note the required experience, technical skills, and whether the FRM is required, preferred, or not mentioned. That can show whether the exam matches the jobs you want.
How can you estimate salary responsibly?
Use several current sources and compare like with like. A salary range for a senior manager is not a fair comparison for an entry-level analyst, and a national average may not reflect your city. Also check whether a figure refers to base pay or includes bonus and other compensation.
| Evidence to compare | How it helps | What to check |
|---|---|---|
| Local job postings | Shows pay offered for specific roles | Location, seniority, required experience, and posted range |
| Occupational salary data | Offers a broader view of pay for a job type | Date, geography, job title grouping, and data method |
| Employer or recruiter surveys | May show pay patterns in a sector | Sample, year, role level, and whether figures are reported or estimated |
| Your current offer or compensation | Shows your personal outcome | Base salary, bonus, benefits, and work conditions |
Compare similar roles across these sources, then ask how your experience and skills fit the requirements. Do not attribute a pay difference to the FRM alone unless the evidence supports that claim.
Is the FRM worth the time and cost?
The answer depends on your target roles and your current position. The credential may make sense if risk jobs you want value the knowledge or list the FRM as preferred. It may be a weaker fit if those roles require experience or technical skills you have not yet built.
Before you commit, compare the full cost and time with the job evidence you find. A useful next step is to review several local postings for risk analyst or credit-risk roles, then identify the gaps the exam can address and the gaps that require work experience or other skills.
Frequently Asked Questions About the FRM Exam
Is the FRM exam a degree?
No. The FRM is a professional certification from GARP, not an academic degree.
Do I need a college degree to take the FRM exam?
No specific degree or major is required to sit the exams. Certification still requires passing both parts and meeting the work-experience requirement.
How many parts does the FRM exam have?
There are two parts. Part I has 100 multiple-choice questions, and Part II has 80. Each exam lasts four hours.
What is the FRM Part I pass rate?
Historical Part I pass rates commonly fall around 45%, but the rate changes by exam sitting. It does not predict an individual candidate’s result.
What is the FRM Part II pass rate?
Historical Part II pass rates commonly fall around 55%, with variation by sitting. Check GARP’s published results for the relevant administration.
How long do I have to pass Part II after Part I?
You must pass Part II within four years of passing Part I.
What work experience is needed for FRM certification?
GARP requires two years of relevant full-time professional work experience. Candidates must submit experience details for review.
How long do I have to submit work experience?
You must submit qualifying experience within five years of passing Part II. Check GARP’s current instructions and deadlines.
What salary does an FRM make?
There is no official or guaranteed FRM salary. Pay varies by role, location, experience, employer, and total compensation.
Does the FRM guarantee a job or raise?
No. The credential can support a relevant application, but it does not guarantee employment or higher pay. Compare job requirements and local salary evidence before deciding whether to pursue it.
(This article was written by one of our staff writers, Nathan Sterling. Visit our Meet the Team page.)
