How to Pass the FRM Exam on Your First Try: Complete 2025 Guide
- Kateryna Myrko
- Apr 6
- 4 min read
The Financial Risk Manager (FRM®) certification from the Global Association of Risk Professionals (GARP) is widely regarded as the most rigorous and globally respected credential in the field of financial risk management. Passing the FRM exam on your first attempt requires more than just time—it requires a focused strategy, a deep understanding of the content, and disciplined preparation.
This guide draws exclusively from the 2025 FRM Candidate Guide to walk you through everything you need to know to succeed, with a particular emphasis on exam content mastery.
Know What You’re Up Against: The Two-Part Structure
The FRM Certification is divided into two exams, each four hours long and computer-based.
FRM Exam Part I: Content Breakdown (100 Multiple-Choice Questions)
Topic Area | Weight | Key Concepts |
Foundations of Risk Management | 20% | - CAPM, multifactor models - Risk governance, credit risk transfer - Enterprise Risk Management (ERM) - Financial disasters and lessons learned |
Quantitative Analysis | 20% | - Probability distributions, estimation - Hypothesis testing, correlation - Regression and time series forecasting - Simulation methods, machine learning |
Financial Markets and Products | 30% | - Derivatives pricing (options, futures, swaps) - Hedging, interest rate risk, FX exposure - Bond types and mortgage-backed securities |
Valuation and Risk Models | 30% | - Value-at-Risk (VaR), expected shortfall - Economic vs regulatory capital - Option and fixed-income valuation - Stress testing, scenario analysis - Credit rating systems and operational risk |
FRM Exam Part II: Content Breakdown (80 Multiple-Choice Questions)
Topic Area | Weight | Key Concepts |
Market Risk Measurement and Management | 20% | - VaR methods (parametric, non-parametric), backtesting - FRTB, term structure models - EVT and volatility modeling |
Credit Risk Measurement and Management | 20% | - Credit analysis, credit VaR - Counterparty and default risk modeling - Credit derivatives and structured finance |
Operational Risk and Resilience | 20% | - Operational risk identification, mitigation - Cyber risk, model risk, AML, Basel compliance - Stress testing, capital planning |
Liquidity and Treasury Risk | 15% | - Liquidity risk metrics, stress testing - Funds transfer pricing, contingency planning - Cross-currency funding, balance sheet management |
Risk Management and Investment Management | 15% | - Portfolio construction, factor theory - Risk budgeting, performance attribution - Hedge fund risk management |
Current Issues in Financial Markets | 10% | - 2023 bank failures - Artificial intelligence in finance - Private credit, inflation, interest rate risk - Crypto regulation, digital resilience |
Master the Curriculum, Not Just the Practice
Unlike other exams, the FRM does not test general knowledge. Every exam question is mapped directly to a learning objective from the curriculum. GARP’s materials are the most authoritative preparation source.
Use the Right Study Tools
GARP provides a rich set of resources:
FRM Books (eBook included for Part I) – Core reading material for all topics.
Learning Objectives Document – Tells you exactly what you need to know for each reading.
Study Guide – Summarizes each topic with key concepts.
Practice Exams – Full-length mock exams with explanations.
GARP Learning (for Part I candidates) – An online platform with progress tracking, questions, and personalized plans.
Optional: Additional readings and regulatory texts (e.g., Basel guidelines) are available online for deeper insight.
Study Method: Structured, Focused, and Realistic How to Pass the FRM Exam , FRM Exam 2025, FRM
GARP recommends a minimum of 275 hours of study per exam part. Successful candidates follow a multi-phase approach:
1. Foundational Learning (2–3 months)
Read through all FRM Books and take notes.
Match readings to learning objectives and highlight key points.
Understand—not just memorize—formulas and models.
2. Application and Practice (1–2 months)
Work through questions at the end of each chapter.
Identify weak areas through GARP Learning’s performance reports.
Solve practice questions by topic, not just in order.
3. Exam Simulation (final month)
Take full-length practice exams under timed conditions.
Analyze mistakes in detail.
Revise high-weight areas: Quant, Valuation, and Markets in Part I; Market, Credit, and Operational Risk in Part II.
Registration and Scheduling Tips
Enrollment Fee: USD 400 (one-time, non-refundable)
Exam Fees: Early – USD 600, Standard – USD 800
2025 Exam Windows:
May: Part I (May 10–16), Part II (May 17–20)
August: Both parts (Aug 8–9, AM/PM)
November: Part I (Nov 8–14), Part II (Nov 15–19)
You must schedule your exam date and location at least 48 hours before your desired time. Deferrals are allowed once for USD 250, but materials are updated annually—so deferring may require purchasing new content.
Exam-Day Discipline and Tools
Bring: Government-issued ID (passport or license) and appointment confirmation.
Calculators Allowed:
HP 12C series
HP 10B II / II+ / 20B
TI BA II Plus (Standard/Professional)
No electronics, notes, or personal items allowed in the exam room.
Each part is 4 hours, and there’s no penalty for incorrect answers—so attempt every question.
Final Requirement: Submit Professional Experience
Passing both exams isn’t the final step. You must submit two years of full-time, risk-related work experience within five years of passing Part II to earn the FRM designation. Qualifying fields include:
Trading and portfolio management
Auditing and consulting
Risk research, technology, or academia
Experience up to 10 years prior to passing can be submitted.
Passing the FRM exam on your first attempt requires intense focus on the curriculum, use of official resources, and a disciplined study strategy tailored to the structure and content of each part. The program tests not just your ability to memorize formulas but your capability to apply them in real-world financial scenarios.
With over 90,000 certified professionals globally, the FRM credential opens doors in investment firms, consultancies, banks, regulators, and beyond. Start with the content, master it with purpose, and approach the exam with confidence. How to Pass the FRM Exam , FRM Exam 2025, FRM
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