FRM Part 1 November 2025 Exam Format: A Complete Guide to Structure and Question Types

Kateryna Myrko
Oct 1
4 min read

The Financial Risk Manager (FRM) certification, administered by the Global Association of Risk Professionals (GARP), stands as one of the most prestigious credentials in the risk management field. For candidates preparing for the November 2025 FRM Part 1 examination, understanding the exam format, structure, and question types is fundamental to developing an effective study strategy. This comprehensive guide breaks down everything you need to know about the exam's architecture.

Exam Structure and Duration FRM Part 1 November 2025 Exam Format

The FRM Part 1 exam consists of 100 multiple-choice questions designed to test your foundational knowledge across four major risk management domains. Candidates are allocated four hours to complete the entire examination, which translates to approximately 2.4 minutes per question. This time constraint emphasizes the importance of not only mastering the material but also developing efficient time management skills.

The exam is computer-based and administered at designated testing centers worldwide during specific windows in May and November each year. For the November 2025 sitting, candidates should verify their local testing dates and centers through the GARP website, as availability may vary by location.

The Four Pillars: Exam Weightings

Understanding how questions are distributed across different topics helps candidates prioritize their study efforts effectively. The FRM Part 1 exam divides its 100 questions across four weighted categories:

Foundations of Risk Management (20%)

This section comprises approximately 20 questions covering the fundamental concepts that underpin modern risk management. Topics include the role of risk management in financial institutions, corporate governance frameworks, regulatory frameworks including Basel Accords, and enterprise risk management principles. Candidates also encounter questions about the history of financial disasters and lessons learned from risk management failures.

Quantitative Analysis (20%)

Another 20 questions focus on the mathematical and statistical foundations essential for risk measurement. This domain tests your understanding of probability theory, discrete and continuous probability distributions, hypothesis testing, regression analysis, time series analysis, and volatility estimation methods including GARCH models. The quantitative nature of these questions requires strong analytical skills and familiarity with statistical concepts.

Financial Markets and Products (30%)

As the heaviest-weighted section with 30 questions, this domain examines your knowledge of various financial instruments and market structures. Expect questions covering equity securities, debt instruments, derivatives (futures, forwards, options, and swaps), commodity markets, foreign exchange markets, and structured products including mortgage-backed securities. Understanding pricing mechanisms, hedging strategies, and the characteristics of different financial products is crucial here.

Valuation and Risk Models (30%)

Matching the previous section in weight, this category also contains 30 questions focused on methodologies for measuring and managing different risk types. Topics include Value at Risk (VaR) methodologies, expected shortfall, credit risk measurement using approaches like CreditMetrics and KMV, operational risk measurement, stress testing frameworks, backtesting procedures, and model validation techniques. This section integrates concepts from previous domains into practical risk measurement applications.

Question Format and Characteristics

Every question on the FRM Part 1 exam follows a standardized multiple-choice format with four possible answers labeled A through D. Only one answer is correct for each question. The questions are designed to test various cognitive levels, from basic recall of definitions to complex application and analysis of risk management concepts.

Calculation-Based Questions

A significant portion of the exam requires mathematical computation. Candidates may encounter questions asking them to calculate VaR using different methodologies, determine option values using the Black-Scholes model, compute bond duration and convexity, or analyze portfolio risk metrics. These questions test both conceptual understanding and computational accuracy.

Conceptual Questions

Many questions assess your grasp of theoretical frameworks without requiring calculations. These might ask you to identify the correct definition of a risk measure, explain the difference between various regulatory approaches, or determine the appropriate risk management response to a specific scenario.

Scenario-Based Questions

Some questions present realistic business scenarios requiring you to apply risk management principles to solve problems. These might describe a portfolio manager's situation and ask you to recommend the most appropriate hedging strategy or identify the primary risk exposure in a complex transaction.

Calculator Policy

Candidates are permitted to use only specific financial calculator models during the exam: the Texas Instruments BA II Plus (including the professional version) or the Hewlett Packard 12C (including the Platinum version). No other calculators, smartphones, smartwatches, or electronic devices are allowed in the testing center. Familiarity with your chosen calculator's functions is essential for executing calculations efficiently during the exam.

Scoring and Pass Standards

GARP does not publish a fixed passing score for the FRM exams. Instead, the organization uses a relative scoring methodology where the passing standard is determined based on candidate performance. Your results will indicate whether you passed or failed, along with quartile rankings showing your performance in each of the four major topic areas compared to other candidates.

Strategic Preparation Approach

Success on the FRM Part 1 exam requires comprehensive coverage of all four domains, with particular attention to the heavily weighted sections on Financial Markets and Products and Valuation and Risk Models. Candidates should allocate study time proportionally to the exam weightings while ensuring no area is neglected entirely. Regular practice with timed mock exams helps develop the speed and accuracy necessary to complete 100 questions within the four-hour timeframe.

Understanding this exam structure empowers you to approach your preparation strategically, focusing your efforts where they matter most and building the confidence needed to succeed on exam day.

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