Risk Career Resource Center | GARP (2024)

FAQs

How hard is it to pass FRM? ›

How difficult is the FRM^® Exam? The FRM exam is very quantitative, and the curriculum takes a lot of time to master. More people fail FRM Part I than pass it, and barely half of those who take the FRM Part II exam, pass it. As a result, only 25 percent of those who register for the exam end up passing both parts.

GARP books: Books provided by the Global Association of Risk Professionals are the most recommended worldwide. Its FRM Part I books features a comprehensive study guide, topic-wise questions, and study notes. The books are most useful for prepping for exams as GARP is the body that sets the FRM exams.

For anyone working in financial risk management, achieving the FRM status can be a great way to boost your career, provide the skills needed to land some of the best jobs in the sector, and potentially enabling you to earn a higher salary.

The question of whether FRM is better than CFA depends on your career goals and interests. Both certifications are highly respected in the finance industry, but they cater to different areas.

Which is more difficult CFA or FRM? Candidates who have done both CFA & FRM usually state that FRM is comparatively more difficult as the questions in FRM are all application based as there is very little theory in FRM. Although the course structure of CFA is lengthier and takes much more time to prepare.

Based on the difficulty level of the questions, both FRM Part 1 and Part 2 exams are considered a notch tougher than the CFA level 1 exam. But that makes the average scores of candidates higher in the case of the latter.

Historical pass rates for the FRM exams provide a window into its difficulty. Over the years, the pass rate for FRM Part I has hovered around 45%, and for Part II, it's been around 55%.

FRM Part 1 passing score estimates

That said, aiming for a score of 65% and above in practice exams is a good position to be in, since passing scores can vary by exam as they get recalibrated.

Steps that you can take for clearing the FRM Level 1 exam in First Attempt: Study Material to be used: Stick to only one material or Books for Preparation like either Schweser or BT or Wiley. Go through Schweser Books or any other material twice before the exam[ Schweser Notes is enough]

The key differences

The IMC focuses on investment management, while the CAIA is tailored towards alternative investments. The FRM offers more comprehensive coverage of risk management principles and practices. Overall, it is clear that the complex financial industry offers many opportunities for career advancement.

Is CFA equivalent to Masters? ›

Is the CFA Equivalent to a Master's Degree? Since both the CFA Program and an MSFA require an undergraduate degree in most cases and require about the same total amount of study, the CFA is generally considered to be equivalent to a master's degree.

There are two levels to the FRM and three levels to the CFA. Furthermore, the CFA requires a minimum of a bachelor's degree to obtain, while the FRM has no formal degree requirements.

The answer is yes; you can pursue both the CFA and the FRM simultaneously. A CFA and FRM combination can be an excellent choice as the competitive finance world demands you to have varied skill sets. However, the challenge of clearing the CFA and FRM exams together remains.

If you are interested in a more versatile finance career path that touches on both risk management and other investing concepts, the CFA charter may be more aligned with your needs.

Exam Pass Rates by Level

From 2012 to 2022, pass rates for the level 1 exam have averaged 41%. Since 2020, the average has been hovering around 37%.