GARP

FRM Part I

Financial Risk Manager Exam Part I

The first of two exams toward the FRM designation, the leading global credential for financial risk managers. Part I covers the tools of risk measurement: quantitative analysis, markets and products, and valuation models.

4 hours

What's on the exam

GARP FRM Part I Study Guide

Foundations of Risk Management

20%

Risk governance and risk management framework · Modern portfolio theory and CAPM · Enterprise risk management · Financial disasters and case studies · GARP Code of Conduct

Quantitative Analysis

20%

Probability and distributions · Hypothesis testing · Linear regression and time series · Volatility estimation (EWMA, GARCH) · Simulation and bootstrapping

Financial Markets and Products

30%

Structure of banks, insurers and fund managers · Futures and forward markets · Options markets and trading strategies · Swaps · Interest rates and bond fundamentals

Valuation and Risk Models

30%

Value-at-risk and expected shortfall · Option pricing (binomial trees, Black-Scholes-Merton) · Bond valuation, duration and convexity · Stress testing · Credit ratings and country risk

Frequently asked questions

How much does the FRM Part I cost?

Fees vary. Exam fee roughly $600–$800 depending on deadline, plus a one-time enrollment fee.

How long is the FRM Part I and how many questions does it have?

100 multiple-choice items — 4 hours.

What do you need to pass the FRM Part I?

Pass/fail; passing standard set by GARP after each administration.

Can you retake the FRM Part I?

May re-register for a subsequent exam window.

What is the best way to study for the FRM Part I?

Study the official blueprint, not random material: the exam is weighted by domain (Foundations of Risk Management 20%, Quantitative Analysis 20%, Financial Markets and Products 30%, Valuation and Risk Models 30%). Spaced-repetition flashcards built domain-by-domain against that blueprint are the most time-efficient way to cover everything the exam tests.

Program in development

We're building a blueprint-complete program for this exam. Meanwhile, explore live programs across 7 exam.

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