The Financial Risk Manager (FRM) certification is awarded by GARP, the Global Association of Risk Professionals. It covers how financial institutions measure and manage risk, and it is built for people working in or moving into risk teams at banks, asset managers, insurers, consultancies and regulators.
How the two FRM parts work
| Part | What it covers |
|---|---|
| Part I | Foundations of risk management, quantitative analysis, financial markets and products, valuation and risk models |
| Part II | Market risk, credit risk, operational risk, liquidity and treasury risk, risk management in investment management, and current issues in financial markets |
Both parts are computer-based multiple-choice exams. Part I is the more quantitative of the two. Part II is more about applying frameworks the way a risk team does day to day.
FRM fees in 2026
| Fee | Amount (USD) |
|---|---|
| One-time enrolment fee (new candidates, paid with Part I) | $400 |
| Part I or Part II, early registration | $600 each |
| Part I or Part II, standard registration | $800 each |
| Both parts, first attempt | $1,600 to $2,000 |
GARP's listed fees exclude local taxes such as VAT or GST, which are added at checkout based on your location. There is no late-registration tier, so missing the standard deadline means waiting for the next window. See the full budget in our FRM cost guide and calculator.
Exam windows and the four-year rule
The FRM runs in three windows a year: May, August and November. You can register for both parts in the same window, but Part II is only graded if you pass Part I.
The rule that catches candidates out: after passing Part I, you must pass Part II by 31 December of the fourth year. Plan your Part II date as soon as your Part I result arrives.
FRM or CFA if you want a risk career?
If your goal is a risk role specifically, the FRM is usually the better use of time: two exams instead of three, and every topic is directly about risk. The CFA is broader and carries more weight in investment roles such as portfolio management or research. Some professionals eventually hold both, but if you are choosing one to start, let the job title you want decide.
Practical check: Look at ten risk-analyst or risk-manager job listings in the city you want to work in. Note whether they ask for FRM, CFA or neither. That count is more useful than any general ranking.
Requirements to become FRM certified
- Pass Part I, then pass Part II within the four-year window.
- Show two years of full-time professional experience in financial risk management or a closely related field.
- Experience can be gained before, during or after the exams, and GARP reviews your submission.
How to plan your first attempt
- Choose a window five to six months away and register before the early deadline to save $200 per part.
- Refresh statistics and basic derivatives before starting Part I material.
- Book Part II for a later window unless you are confident on Part I, to avoid paying for an exam that may not be graded.
- Start recording your risk experience early so the certification application is ready when you pass.
Frequently asked questions
How much does the FRM cost in 2026?
A new candidate pays a one-time $400 enrolment fee, then $600 per part with early registration or $800 at the standard price. Passing both parts at the first attempt costs $1,600 to $2,000 in GARP fees, before taxes and study materials.
Can I take FRM Part I and Part II in the same window?
Yes, you can register for both parts in the same window. GARP only grades Part II if you pass Part I, so sitting both at once is a risk if you are not confident on Part I.
How long do I have to pass FRM Part II?
GARP requires you to pass Part II by 31 December of the fourth year after passing Part I. Missing it means paying the enrolment fee again, so confirm the current rule with GARP before planning a long gap.
Do I need work experience before the FRM exams?
No. You can sit both parts without experience. To be certified, you then need two years of full-time professional experience in financial risk management, which can be gained before or after the exams.
Are FRM fees refundable?
GARP only accepts refund requests within a short window after registering, so check the current policy on its fees page before you pay.
Official sources