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FRM stands for Financial Risk Manager, a professional designation administered by the Global Association of Risk Professionals (GARP). It targets professionals working in risk management, capital markets, asset management, and corporate treasury. The credential signals competence in identifying, analyzing, and mitigating financial risk across markets, credit, operational, and liquidity contexts.

Examination and requirements: The FRM program comprises two parts. Part I tests Foundations of Risk Management; Quantitative Analysis; Financial Markets and Instruments; Valuation and Risk Models. Part II emphasizes applying risk management concepts in practice, including Market Risk Measurement and Management; Credit Risk Measurement and Management; Operational Risk and Resiliency; Liquidity and Treasury Risk Measurement and Management; Risk Models; and Current Issues in Financial Risk Management. Candidates must pass both parts and have two years of professional work experience in risk management or a related field; they must also adhere to GARP’s Code of Ethics. Exams are computer-based, offered globally, and typically administered twice a year (May and November).

Maintenance and recognition: The designation is widely recognized in banks, asset management firms, insurers, and corporations with risk functions. It is not a license or regulatory requirement, but it is regarded as a strong credential for advancement in risk roles. After certification, holders maintain the credential through ongoing professional development activities and ongoing engagement with GARP.