http://www.garp.org/frm/overview/frm-facts/frm-statistics-and-charts.aspx
It seems to be getting easier to pass; or people just studied better. Hope the pass rates will drop a bit in the future to give it more credibility (40-50% pass rates seem nice).
I think it would continue at this rate for sometime as GARP is trying really hard to enhance global FRM visibility.
Well, I think the full exam pass rate was down at mid-40s when I sat it (November 2009), but splitting the exam seems to have seen people do better even thought the curriculum has broadened out. For those of you worried about the credibility of this designation don’t. I have done the CFA, FRM and CAIA in the past three years and IMHO, the FRM is without a doubt the one with the most rigour. The one complaint I have about it is that, for all GARPs claims of raising awareness of risk in all areas, the operational failures vis its website etc, together with the mistakes that contiue to appear in exam questions etc, suggest that the governing body has yet to reach the maturity levels of the CFA Institute. That comes with time and obviously the CFA Institute has been around a lot longer and has a lot more influential patrons (at the moment).
Agreed. If I was in charge at GARP, I would permanently set the pass rate at 49% for both FRM1 and FRM2. This would achieve a good balance between: (1) maintaining the designation’s reputation for rigor (ie. “the majority of test-takers fail”), and (2) not making the exams so difficult that it discourages potential candidates from enrolling.
I agree with Millview. The perceived quality of the certification is dependent on many factors not only the passing rate. The CFA exams all the way until early 2000’s had passing rates of over 50% and in the case of level 3 over 70%. Still, it was a respected designation then and continues to be. Here are the reasons: the sheer size and quality of the required study material, the organization of the program, the involvement of the organization in the industry globally, the number of members, organized and quality seminars, and marketing campaign. GARP has a long way to go, but I don’t think the passing rate will dictate whether it is going to be a respected designation or not. As a matter of fact, many potential candidates will stay away from the FRM exams due to the quantitative nature of the materials, which was what attracted me to this designation in the first place. The study material is vast and includes great articles and studies written by top notch practitioners and academics, this is not the case with many other certications (e.g. CAIA). In addition, the risk management industry is growing and there will be a lot of highly qualified and educated folks that may be required by their employers or decide to take the exams themselves. This will increase the prestige, number of members, and recognition of the designation irrespective of the passing rates. Further, the passing rate is not stable over time. It will fluctuate as in any other designation refrecting the quality of the candidates and study subjects being tested in a particular year.