Financial Risk Management
FRM Part - 1
Eligibility and/or Pre-Requisites
The FRM course welcomes candidates from various academic backgrounds, without any specific educational field prerequisites. There are NO ELIGLIBILITY CRITERIA for potential candidates; even those in the early stages of their undergraduate education can embark on the FRM journey by taking the Part 1 examination.
About the Exam - FRM Part 1
FRM Part 1 is the first level of the Financial Risk Manager (FRM) certification offered by the Global Association of Risk Professionals (GARP). It involves an examination that assesses candidates' understanding of foundational concepts in risk management This encompasses a comprehensive exploration of quantitative analysis, fundamental concepts in risk management, the intricacies of financial markets and products, and the application of valuation and risk models. The examination assesses candidates' proficiency in these core areas, laying the foundation for a solid understanding of risk management principles and practices in the financial domain.Various modules carry different weights in the exam, and to pass FRM Part 1, a minimum score is required in each module.
Topic Weightage for FRM Part 1
Foundations of Risk Management
Principles, governance, and lessons from past crises that shape modern risk management.
Quantitative Analysis
Probability, statistics, regression, time series, and ML primers for risk decisions.
Financial Markets and Products
Derivatives, rates, FX, commodities, and structured products across markets.
Valuation and Risk Models
Valuation methods plus credit, market, and operational risk models in practice.
Topic Deep Dives
Four building blocks of FRM Part 1 with quick anchors into the syllabus.
Foundations of Risk Management
This module is designed to impart fundamental knowledge of the basis of risk management. It introduces the principles and process of risk management. It also provides a primer for risk governance, risk measurement, and the roles, responsibilities and duties of a successful risk manager. Along with best practices for good risk management and governance, it also provides insight into past financial crises and business failures which were caused due to poor risk management.
Quantitative Analysis
The main focus of this module is to impart and equip candidates with crucial quantitative tools and techniques necessary for risk assessment and measurement. It deeply covers topics like probability theory, Statistics (Basic as well as advanced), Regression analysis, and time series analysis. It also provides a primer for the most recent technological developments being used in the industry such as machine learning and artificial intelligence.
Financial Markets and Products
This module attempts to provide a detailed overview of various financial instruments including derivatives, securities, and structured products. The module aims to provide a sound understanding of different types of financial assets such as fixed-income securities, money market instruments, FX products, commodities, derivatives (F&O and swaps, etc), and alternative investments such as CDOs, CLOs, ABS, etc. and introduces the concept of hedging as an important tool of risk management.
Valuation and Risk Models
This module is essential for understanding the valuation of various financial instruments including fixed income, equity, and derivatives (Swaps, Options, Eurodollars, dollar roll, etc.) valuation. It also provides a basic understanding of risk modelling, encompassing interest rate risk, credit risk, and operational risk. This module equips candidates with the essential skills to accurately value financial instruments and manage associated risks.
Exam overview
Composition and Exam Structure
FRM Part 1 comprises 100 equally weighted questions presented in a multiple-choice format on a computer-based test (CBT). In this modern and efficient testing experience, you have four hours to complete the exam by selecting the correct answers from the provided options. The objective is to evaluate your knowledge, application abilities, and decision-making skills within a defined timeframe. In both GARP FRM exams (Parts 1 and 2), no negative marking is applied. Candidates do not face penalties for providing incorrect answers.
Format
100 MCQs | 4 hours | computer-based test
Scoring
No negative marking across Parts 1 and 2
Coverage
Balanced weights across the four topic blocks above
Objective
Test knowledge, application, and decisions under time pressure
100 MCQs | 4 hours | no negative marking
Study plan
16-week Roadmap to Finish Part-1
Ideally, a candidate preparing for the FRM Part 1 exam should complete the whole curriculum in 16 weeks with 30-35 hours of study every week. This study plan provides a 16-week road map with relevant chapters that should be covered every week. It also provides a carefully researched chapter sequence that can be followed to ensure maximum understanding of the FRM Part 1 curriculum.
- 16-week pacing with 30-35 hours per week
- Sequenced chapter order for retention
- Video explainer + downloadable tracker
- Links to syllabus and practice questions
Preparation Tips
Practical checkpoints to keep your prep on track.
Preparation Window
Allocating a preparation window of at least 5 months for FRM Part 1 is advisable.
Time Required
To achieve thorough preparation, it is recommended to dedicate around 600 hours to FRM Part 1. Avoiding shortcuts is emphasized to ensure a deep understanding of risk management concepts and tools, facilitating ease in answering interview questions.
Material
Choosing the right study material is paramount. MidhaFin, as one of the first GARP Authorized Prep Providers for FRM, offers comprehensive study material, including over 200 hours of content videos, 85 plus hours of question-solving videos, and 100 plus hours of revision videos.
Questions
Solving a substantial number of questions is key to preparation success. MidhaFin provides question banks with over 3000 questions, closely aligned with recent exam trends. GARP sample paper questions from the past 15 years are also included.
Periodic Tests
Implementing regular quizzes is integral to the active learning philosophy at MidhaFin. Four monthly tests are conducted, focusing on the curriculum taught during the respective month. Graded tests enable students to monitor their performance consistently.
Mock Tests
MidhaFin conducts 5 mock tests towards the end of the preparation period, starting approximately a month before the exam. These full-length mock tests cover the entire syllabus and are graded, providing quartile analysis similar to the actual GARP FRM exams.
Frequently Asked Queries
The FRM (Financial Risk Manager) exam is a globally recognized certification offered by the Global Association of Risk Professionals (GARP). It is considered one of the most prestigious designations for risk management professionals. The FRM exam is divided into two parts, Part 1 and Part 2, and assesses a candidate's knowledge and ability to apply risk management concepts in real-world scenarios.
The FRM course welcomes candidates from various academic backgrounds, without any specific educational field prerequisites. There are NO ELIGIBILITY CRITERIA for potential candidates; even those in the early stages of their undergraduate education can embark on the FRM journey by taking the Part 1 examination.
Allocating a preparation window of at least 5 months for FRM Part 1 is advisable. It is recommended to dedicate around 600 hours for thorough preparation. MidhaFin offers a 16-week structured study plan with 30-35 hours per week.
As of 2026, The FRM Part 1 exam is offered thrice a year. Specifically, candidates have the opportunity to take the exam during two one-week exam windows, typically in May and November. And there is a single exam date in August. This schedule allows candidates to plan their preparation and choose a convenient timeframe to sit for the exam.
FRM Part 1 comprises 100 equally weighted multiple-choice questions presented in a computer-based test (CBT) format. Candidates have four hours to complete the exam. There is no negative marking in the FRM exam.
MidhaFin's study materials offer a comprehensive and detailed preparation experience tailored to meet the requirements of FRM Part 1. Our learning materials include lecture videos, complete study materials, revision videos, a doubt-solving forum, an interactive student group, a customized study plan, question bank PDFs, past sample paper questions, five mock tests, module-wise tests, and question-solving videos.