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FRM vs. PRM


In order to support you choosing one of the certification programs we have compared the certification programs of »GARP (Global Association of Risk Professionals) and »PRMIA (Professional Risk Managers' International Association) on the following table:


Certification »FRM »PRM
Philosophy "The Financial Risk Manager (FRM®) certification is the globally recognized benchmark and professional designation for financial risk managers. If you are in financial risk management, or considering a career in it, then earning the FRM designation is the natural next step. The FRM program is rigorous and is designed to measure a candidate's grasp of the latest technical and industry knowledge; successful completion of the program signifies a candidate's ability to keep pace with a rapidly changing financial landscape."

Certificates will be handed over only to candidates who have passed the FRM Exam and provided GARP with proof of their 2 years of work experience.
"The PRMIA Certified Risk Manager program sets the standard for assessing the knowledge, competence and integrity of risk professionals. It is the only Globally Endorsed certification program for risk managers. The exam tests a candidate's knowledge and ability to apply the essentials of financial risk management to everyday, real-life situations in the workplace."

"To meet with the needs of busy professionals, the program provides for great flexibility, offering one six-hour exam for those wishing to complete evaluation in one day, or four separate exams, varying in length from one to two hours, which can be taken in any order over a period of up to two years. Passing all four exams leads to the award of the PRM designation."

An online scientific calculator will be provided at the test center. No other calculators will be allowed.
Exam Structure Part I:
  • Financial Markets and Products
  • Foundations of Risk Management
  • Quantitative Analysis
  • Valuation and Risk Models

Part II:
  • Market Risk Measurement and Management
  • Credit Risk Measurement and Management
  • Operational and Integrated Risk Management
  • Risk Management and Investment Management
  • Current Issues in Financial Markets
4 exams, taken separately or complete:
  • Finance Theory, Financial Instruments and Markets
  • Mathematical Foundations of Risk Measurement
  • Risk Management Practices
  • Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws
Exam fees Part I:
early registration: $650
standard registration: $775
late registration: $950

Part II:
early registration: $350
standard registration: $475
late registration: $650

standard:
one exam: $195
all exams:$500

sustaining PRMIA members:
one exam: $175
all exams:$450
Discounts early registration; scholarship possible for groups of 10 or more candidates from the same organization; scholarship possible
Basic Readings Study Guide
free downloadable readings
Jorion: FRM Handbook, 6rd edition 2010
Readings CD
Self Study Guide
Exam guide
Professional Risk Managers' Handbook
Next Possible Exam Dates May 17 , 2014
November 15, 2014
new in 2014: 4 testing windows a year
Exam periods will be:
1st window: February 24 – March 14
2nd window: May 26 – June 13
3rd window: August 18 – September 5
4th window: November 24 – December 19
Testing Locations 90 cities worldwide
in Germany: Frankfurt, Munich
any of nearly 4,000 locations, operated by Pearson VUE, in over 140 countries; more than 150 locations in Germany (e.g. Berlin, Frankfurt, Marburg)
Format Part I:
100 multiple choice questions
2 sessions of 2 hours

Part II:
80 multiple choice questions
2 sessions of 2 hours
multiple choice; full exam: 120 questions; Exam questions are randomly drawn, according to the syllabus order and weightings, from the exam database
Recognition of Other Designations   candidates need only to pass the following exams:

CFA, CIIA, CEFA,CQF, Acturial Fellows:
exams III and IV

Acturial Associates:
exams I, III and IV

CSI Financial Risk Ma-nagement Graduates, CAIA-members:
exams II, III, and IV

Exam Results

six weeks after the Exam is administered 15 business days after the exam has been taken

Statistics

(as of December 2013)  

Certifications

> 28,000 n/a

Passing Rates

45.9%  (Part I), 56.8% (Part II) 49 % (exam I) -72% (exam IV)
last updated 24-01-2014

News


»PRMIA (Professional Risk Managers' International Association) has announced an »update of its certification program over the first months of 2015, including changes in syllabus, study material, and continuing education and membership requirements.

»GARP (Global Association of Risk Professionals) has published the list of candidates who were certified as Financial Risk Managers (FRM) in the fourth quarter of 2014, where as last year asian candidates again had an eye-catching percentage of over 95%. That arises the question why german participation is such as low?

Should the FRM Program be widely unknown?
We recommend to download the free available »FRM Candidate Guide.

Are the passing rates too low?
We make slides and excel-sheets of the preparation course - held  at Philipps University Marburg - for free »download available


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Why should I become a Certified Financial Risk Manager?

Dr. Helmut Siegert,
FRM + PRM:

"Working in an area of risk, it’s absolutely essential to have broad and deep skills in risk measuring and management, as well as in theory and in practice. By preparing for the FRM® it was guaranteed to check my professional skills and to get additional knowledge relating to all key areas of risk management.

Because every day risk management profession is more a craft than a science (i.e. finding data and developing solutions), I think obtaining FRM® certification is also an important benefit for IT-professionals. Mastering such interdisciplinary training courses in preparation for the FRM® exam leads to a better understanding of financial models and methods as well as data and processes.Goal of the program should be a realistic and sound education in the area of quantitative risk management..." [»more]


More information about GARP and PRMIA:
»comparison between the two international associations for Risk Professionals