In this article, we’ll help you figure out if the Financial Risk Manager (FRM) certification is worth pursuing. We’ll break down what the certification entails, its cost, and the requirements for earning it.
The world doesn’t always act the way we expect—even with all the data and research at our fingertips. With more businesses facing sudden challenges today, the demand for FRMs has grown significantly. In fact, according to the U.S. Bureau of Labor Statistics, risk management is among the fastest-growing fields in terms of employment.
However, breaking into the field can be a challenging endeavor. To build a solid reputation as a capable risk manager, you’ll need more than just interest—you need a credential that proves your skills and dedication. That’s where the FRM certification comes in.
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But the main question is, “Will an FRM certification match your personal and professional aspirations?” This field is filled with opportunities. Still, it’s not for everyone.
So, is the FRM certification worth it? Let’s find out.
What Is the FRM Certification?
The Financial Risk Manager (FRM) certification is one of the most sought-after credentials in the financial industry today. Offered by the Global Association of Risk Professionals (GARP), it’s awarded only to professionals who successfully demonstrate their expertise in key risk management topics by passing a challenging two-part exam.
Related Articles:
- Are Chartered Financial Analyst (CFA) Certifications Worth It?
- Are Certified Financial Planner (CFP) Certifications Worth It?
- Are Certified Treasury Professional (CTP) Certifications Worth It?
- Is a Finance Degree Worth It?
FRM Exam Part I:
Think of Part I as building your toolkit. Here, you’ll get familiar with the core concepts and techniques that risk pros use every day. It dives into:
- The basics of risk management and why it matters
- Crunching numbers and stats through quantitative analysis
- How different financial markets and products really work
- The models we use to figure out what something’s worth—and what could go wrong
FRM Exam Part II:
Part II is where it gets real. You’ll apply what you learned in Part I and see how it all plays out in real financial scenarios. It covers:
- Measuring and managing market risk (like sudden price swings)
- Understanding and controlling credit risk (when borrowers might not pay)
- Keeping a handle on operational risk (the “oops” moments inside a company)
- Applying risk management strategies in investment management
- Managing liquidity and treasury risk to keep the business running smoothly
- Staying on top of current issues shaking up today’s financial markets
But to take the exam, you need to have at least two years of relevant professional experience.
Is the process hard? Yes. Not only will you sit for a challenging exam, but you also need to prove that you deserve a seat. But is the FRM certification valuable? Absolutely!
What Are the Benefits of an FRM Certification?
Given the growing uncertainties in global finance, the benefits of FRM certification go way beyond just titles. As one of the leading certifications in the finance industry, you can expect a lot from the certification.
Here are the key reasons why you should consider the FRM certification.
Global recognition as a financial risk management expert
Getting the FRM isn’t just about passing an exam—it’s about being known, pretty much anywhere in the world, as someone who truly gets risk. Whether you’re in New York, Singapore, or Frankfurt, the FRM title tells people you speak the language of risk fluently. Right now, there are over 70,000 FRMs across 190+ countries, so it really does have a global stamp.
Enhanced career opportunities in the financial services industry
With more companies worrying about sudden market swings, economic shocks, and compliance changes, skilled risk managers are in high demand. Jobs with FRM certification include:
- Risk Analyst
- Credit Risk Manager
- Market Risk Specialist
- Chief Risk Officer
Higher earning potential
While exact numbers vary by region and role, earning a certification in risk management can lead to significantly higher salaries. According to the Global Association of Risk Professionals (GARP), FRM-certified professionals can make up to 25% more than those without the certification. Similarly, research from the Project Management Institute (PMI) found that certified project managers can earn up to 22% more than their non-certified peers.
Access to a network of financial risk management professionals
Once you’re an FRM, you join a worldwide community. That means events, meetups, webinars, and even online groups where people share insights, job openings, and real-world stories.
Improved credibility with employers, clients, and regulators
When you’ve got FRM on your resume, it signals to bosses, clients, and even regulators that you are very skilled and that you’ve proved it through a tough, globally respected process. In industries built on trust and precision, that credibility can go a long way.
So, what do you think? Is the FRM certification worth it? For many, it’s totally worth it. Yet, you need to understand that it also comes with a cost.
What Does the FRM Certification Cost?
Here’s a practical breakdown of the Financial Risk Manager certification cost.
Estimated Total Cost
For most candidates, the total cost of both Parts ranges from about $2,150 to $3,648. This estimate assumes you pass both Parts on your first try, register early, and don’t need to pay for travel or accommodation.
- Part 1 typically costs between $1,300 – $2,049
- Part 2 is about $850 – $1,599
Key FRM Cost Components
1. Enrolment & Registration (Required)
| Fee Type | Cost (USD) |
| One-time enrolment fee | $400 |
| Registration fee (per Part): Early | $600 |
| Registration fee (per Part): Standard | $800 |
2. Calculator (Required)
You’ll need a GARP-approved calculator:
| Calculator Model | Average Price |
| TI BA II Plus | $34 |
| TI BA II Plus Professional | $50 |
| HP12C | $56 |
| HP12C Platinum | $44 |
3. Study Materials (Required)
FRM exam fees don’t include study materials, so you have two choices:
| Option | Cost per Part |
| GARP eBooks | $250 |
| GARP physical books | $300 |
| Third-party self-study | $349 – $399 |
| Premium third-party courses (with videos/review) | $399 – $799 |
Many candidates combine the GARP curriculum with concise third-party notes to save time.
4. Other Costs (If Applicable)
| Item | Cost (USD) |
| Retake registration | $600–$800 per retake |
| Updated study materials | $349–$799 per Part |
| Deferral fee (postpone exam) | $200 |
| Travel/accommodation | Varies |
5. Membership (Optional)
| Item | Cost (USD) |
| GARP annual membership | $150 |
Membership isn’t required to use your FRM designation, but some choose it for networking and resources.
How Does FRM Compare to Other Certifications Like the CFA?
Besides the FRM certification, there’s another popular credential competing for attention: the Chartered Financial Analyst (CFA).
Here’s a thorough FRM vs CFA comparison.
Topics Covered
- CFA covers 10 topic areas:
- Ethics and Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting & Analysis
- Corporate Finance
- Equities
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management
- FRM focuses on risk and quantitative analysis:
- Foundations of Risk Management
- Quantitative Analysis
- Financial Markets & Products
- Valuation & Risk Models
- Market Risk
- Credit Risk
- Operational Risk
- Liquidity & Treasury Risk
- Risk Management in Investment Management
- Current Issues in Financial Markets
Exam Structure & Frequency
- CFA:
- 3 Levels
- Level 1: 4x a year (Feb, May, Aug, Nov)
- Level 2: 3x a year
- Level 3: 2x a year
- Fastest possible completion: ~18 months
- FRM:
- 2 Parts
- Part 1: 3x a year (May, July, Nov)
- Part 2: 2x a year (May, Nov/Dec)
- You can take both parts on the same day, but most candidates don’t
Exam Format
- CFA:
- Level 1: Multiple choice
- Level 2: Item sets (case study format)
- Level 3: Item sets and written essays
- FRM:
- Both parts: Multiple choice
- Study Time
- CFA: ~300 hours per level
- FRM: ~200–250 hours per part
Costs (Approximate)
| Program | Enrollment Fee | Exam Fees |
| CFA | $350 (one-time) | $900–$1,200 per level |
| FRM | $400 (one-time) | $600–$800 per part |
Typical Salaries (estimates, vary by region & role)
- CFA charterholder (e.g., portfolio manager):
- Base: ~$126,000
- Total compensation: ~$177,000
- FRM-certified professional (e.g., risk manager)
- Base: ~$102,000
- Total compensation: ~$128,000
Career Paths
- CFA:
- Investment banking
- Portfolio management
- Research analysis
- Wealth management
- Corporate finance
- FRM:
- Market risk
- Credit risk
- Operational risk
- Treasury
- Risk consulting
Which Is Right for You?
- Choose FRM if you:
- Want to specialize in risk management
- Prefer roles in banks’ risk teams, treasury, or compliance
- Choose CFA if you:
- Seek broader finance knowledge.
- Aim for roles in portfolio management, investment analysis, or corporate finance.
- Do both if you:
- Aim to stand out with expertise in both investing and risk.
Is the FRM Certification Worth the Investment?
Let’s break down the possible return on investment of FRM certification.
Salary Expectations
On average, FRM-certified professionals do earn more than their non-certified peers.
- According to GARP, FRMs can make up to 25% more compared to similar roles without certification.
- Typical FRM certification salary potential varies by location and seniority:
- Risk Analyst / Manager: $80,000–$120,000+Market or Credit Risk Specialist: $100,000–$150,000+
- Chief Risk Officer or Head of Risk: Can go well above $200,000
Career Flexibility
The FRM credential doesn’t lock you into just one niche. Instead, it gives you skills that apply across many parts of finance, including:
- Banking (credit, market, operational risk teams)
- Treasury and liquidity management
- Asset management firms
- Consulting and advisory services
- Even non-financial sectors like energy, healthcare, and technology, where risk teams are growing
Here’s the honest bottom line:
- The FRM certification isn’t cheap. You might spend anywhere from $2,000–$3,600+ (including materials).
- You’ll invest serious time too — around 400–500 hours total if you study properly.
- Suppose your career goals involve moving into senior risk roles, specializing in risk analysis, or pivoting into banks and financial institutions where risk is critical. In that case, the FRM can pay for itself within a few years thanks to salary bumps, new job opportunities, and long-term earning potential.
If, on the other hand, your interests lean more toward broad investment research, portfolio management, or corporate finance, the CFA might deliver higher ROI for you.
Can You Get Financial Aid or Reimbursement for the FRM?
Good news—there are ways to offset the costs. Here are a few FRM certification financial aid options and tips to reduce certification expenses.
Employer-Sponsored Options
Many employers offer financial support for professional development. Some companies even pay for exam fees and study materials, especially if your role directly relates to risk management.
Tax Benefits or Education Deductions
In some cases, you might be able to deduct educational expenses related to your FRM certification on your taxes. Check with a tax professional to see if you qualify for any education-related deductions.
Scholarships
Unfortunately, there are limited scholarships specifically for the FRM exam. Most only cover FRM Part 1 registration fees.
Free Resources
Take advantage of free guides, calculator tutorials, and our FRM Study Planner, which has helped many candidates pass.
Discounts
Third-party study materials, such as those from 360Hours, can really help.
Who Should Consider Earning the FRM?
The FRM certification is designed exclusively for the following people:
- Risk managers and analysts seeking to formalize what they do every day
- Finance professionals who regularly deal with market, credit, or operational risks
- Consultants, auditors, and advisors specializing in risk and compliance
- People in investment banking, asset management, or treasury roles who want to level up their risk skills
Final Thoughts: Is the FRM Right for You?
One of the main questions people ask before pursuing the FRM is, “How hard is the exam?” and “How much will it cost?”
The truth? The FRM exam is challenging because it tests not only what you know, but also how well you can apply it under pressure. And while the total cost usually ranges from about $2,150 to $3,600, many candidates see it as an investment rather than just an expense.
In the end, only you can decide whether the FRM aligns with your career path. But if you’re up for the challenge and ready to invest the time and effort, the FRM could definitely be worth it. But if your interests lie elsewhere in finance, a different certification, like the CFA, might be a better choice.