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Home FRM Nuts & Bolts of FRM Exam

Nuts & Bolts of FRM Exam

June 15, 2015 by Jesal Shethna 59 Comments

Why FRM is one of the most sought after certifications for Risk Professionals?

Picture this

There have been more than 150,000 registrants for the FRM exam since 1997.
923 organizations had five or more registrations for the FRM Exam in 2014.

38 organizations had 100 or more FRM registrations in 2013.

In 2014, 11 organizations had 250 or more FRM registrations.

In 2014, graduate students from over 350 educational institutions enrolled in the
FRM.

90% of those who sat for the May 2014 FRM Exam would recommend that their
colleagues also sit for the FRM Exam.

More than 30,000 FRMs are practicing worldwide.

As you can note from these mind boggling numbers, FRM certification is one of the
best ways to boost Risk Management Careers (and ofcourse, salaries ). However,
you will have to invest a good amount of your time and money and also sacrifice a
lot of your social life.

Also, have a look at Important FRM exam 2016 dates and registration process

This comprehensive FRM article will give you nuts and bolts of FRM Examination,
pattern, study tips, exam resources etc.

About FRM Program

Why Pursue FRM?

FRM Exam Format

FRM Exam Weights / Breakdown

FRM Examination Fees

FRM Results & Passing Rates

FRM Study Material

Strategies: Before the exam

Strategies: During the exam

Scholarship Opportunities

Deferral policy
Useful FRM Exam Prep Resources

Please note that like the FRM exam, there are various other credentials from which
you could pick, subject to the area of finance you want to specialize in. It is very
important that you choose yours carefully as each one of them are exclusive and
provide certain paybacks, if not then it wont count. If you are confused on which
one to go for, you may look at a comparative analysis on CFA vs FRM. Also, to get a
deeper understanding of CFA examination, you can look at the Beginners Guide to
CFA Examination.

About FRM Program

The Global Association of Risk Professionals (GARP) came up with the Financial
Risk Manager (FRM) for those who are interested in getting certified as someone
serious about managing risks. FRM can really be a treasured certification which can
help you in career enhancement, stand out and get recognized among the
employers and give you an opportunity to improve your knowledge and expertise in
the area of financial risk management.

Roles: Financial Risk Consultant, Risk Management, Credit Management, Asset

Liability Management, Risk Appraisal, Risk Assessment. FRM may not be useful for
those looking for Investment Banking or Equity Research Careers

Exam: The FRM program consists of FRM Exam Part I and Part II which are pencil
and paper multiple choice exams.

FRM Exam dates: Both the FRM Exam Part I and Part II are conducted twice a year in
the month of May and November (usually third Saturday). Also both the levels can
be taken on the same day at once.

The Deal: The two-part FRM Exam tests advanced, cumulative knowledge, and the
concepts tested on the FRM Exam Part I are needed for Part II. The FRM programs
two parts concludes with a four-hour examination each. Both FRM Part I and Part II
can be taken on one single day. Although if you do not clear FRM Part I and clear
Part II, you will still have to appear for both the exams next time.

Eligibility: Anyone can enroll in order to take the FRM exams.

FRM Program completion criteria

Pass the FRM Exam Part I and Part II within 4 years

Candidates must take the FRM Exam Part I before taking Part II
Demonstrate 2 years of relevant work experience. This work experience cannot be
more than 10 years prior to having passed the FRM Exam Part II. Also the
experience earned for school will not be considered, including internships, part-time
jobs, or student teaching. A candidate has 5 years to submit their work experience.
After 5 years, the candidate will have to re-enroll in the program and pay the
required fees again.

Certified FRMs are strongly encouraged to earn 40 hours of Continuing Professional

Development (CPD) every two years to maintain the latest best practices in risk
management.

Recommended study hours: GARP recommends that FRM candidates dedicate

around 200 hours of study to prepare for each part of the FRM exams.

What do you earn? You become a certified Financial Risk Manager (FRM)

Why Pursue FRM?

FRM certification should be chosen and pursued because it is required in the current
economic and finance industry. But at the same time you need to consider your
career prospects which could vary according to your interests and current
professional experience if any.

FRM does not guarantee a job or a salary hike but yes it definitely gives you an
edge over your counterparts, provides with a reasonable advantage over your
colleagues at your workplace.

With this you get an opportunity to prove your worth which in turn could help you
with the salary hike and not just the certification.

Moreover, the focused knowledge and skills you learn in financial risk management,
the opportunity to network and access with financial risk professionals can provide
you with exposure to the industry.

This certification will give you a chance to indicate high value skill set in a niche
fragment of finance domain.
Have a look at the top 5 companies and the top 5 global banks employing the most
FRMs.

FRM Exam FormatFRM Exam FRM Part I Exam FRM Part II Exam

Focus on Basic tools and techniques used in risk management and various
theories that use them. Application of the tools and techniques learnt in Part I and
deeper insights into major sub-parts of risk management.

Exam formatMultiple Choice Questions (MCQ) Multiple Choice Questions

(MCQ)

Questions Equally-weighted 100 questions Equally-weighted 80 questions

Duration 4 hours 4 hours

Key highlights about the FRM exam format

FRM Part I Exam

This part of the FRM exam focuses primarily on critical tools and theories required to
gauge financial risk.

The broad area of study would include foundation of risk management, quantitative
analysis, financial markets and products, valuation and risk models.

The exam is in Multiple choice questions format which makes it easy but taking into
consideration the time aspect, the exam taker has on an average around 2.4
minutes per question.

Questions are aimed to relate theory to practical, real-world, problems to

understand risk management.

No penalties for incorrect answers

FRM Part II Exam

This part of the exam is a notch up then the Part I exam and focuses on market risk
management, credit risk management, operational and integrated risk
management, investment risk management and current issues in financial markets.

The exam is again Multiple choice questions format and the exam taker has on an
average 3 minutes per question.

Questions are practical in nature, wherein the candidates are expected to behave as
a risk manager and deal with risk management.

No negative marking for incorrect answers

FRM Exam Weights / Breakdown

FRM Part I Exam

Every particular aspect of financial risk management will weigh differently in the
exam (Breakup provided below). In order to clear the Part I exam you are required to
demonstrate extensive knowledge of all the areas laid down by the FRM curriculum.

You need to practice well for the quantitative section especially if you from
commerce background and have not worked on quantitative problems before.

One great news for you. There are NO SECTIONAL CUT-OFFS! Yes you can clear the
exam even in case you get a 4th quartile in one of the sections. Though it is highly
advisable to not screw-up the high weightage sections you see below.

FRM Part II Exam

The FRM Part II exam curriculum has been divided into five main areas (outlined
below with their individual weightage)

The maximum weightage and focus of the exam is for the sub-areas of risk
management such as Market Risk Management, Credit Risk Management
Operational & Integrated Risk Management.

Again there are no sectional cut-offs

FRM Examination Fees

The following is the information for FRM Part I November 2015;

You will have to pay a one-time enrollment fees of $300. Another aspect which
needs to be taken into account is the time of payment. The earlier you register for
the exam the cheaper it is. For instance, the payment during the third deadline will
cost you US $950 whereas the first deadline will cost you US $300 less that is US
$650.

The program enrollment fees are valid for four years which means that you need to
appear for the FRM Part I & II exam within this period.

Deadlines May 1 2015 July 31st 2015 Aug 1 2015 Aug 31st 2015 Sept 1
2015 Oct 15th 2015

Enrollment fee US $300 US $300 US $300

Exam fee US $350 US $475 US $650

Total US $650 US $775 US $950

source GARP

The following is the information for Returning candidate FRM Part 1 & FRM Part II
November 2015DeadlinesMay 1 2015 July 31st 2015 Aug 1 2015 Aug 31st
2015 Sept 1 2015 Oct 15th 2015

Enrollment fee US $0 US $0 US $0

Exam fee US $350 US $475 US $650

Total US $350 US $475 US $650

source GARP

FRM Results & Passing Rates

The FRM Exam results are declared through an email generally six weeks after the
exam is conducted. You are also provided with the quartile results which will
basically allow you to understand how you scored on the broad areas of the exam
with respect to other participants. Also the passing score is not revealed and is
determined by the FRM committee.

The passing rates fall within a range of 30-60 % for both the parts of FRM exam.
Lets look at the passing rates for each of the levels;

FRM Part I Exam Passing rate is around 47%

Looking at the past 5 years (2010-2014) and 10 exams the FRM Part I Exam had the
pass percentage in the range of 39% to 54%, with an average passing rate of 47%.

Average passing rate for the May examination was 48%.

Average passing rate for the November examination was 46%.

FRM Part II Exam Passing rate is around 58%

Again considering the performance of past 5 years (2010-2014) and 10 exams the
FRM Part II Exam had the pass percentage in the range of 54% to 59%, with an
average passing rate of 58%.

Average passing rate for the May examination was 58%.

Average passing rate for the November examination was 57%.

It is interesting to note that the pass percentage for both Part I and II was seen
highest in the Year May-2011 at 53.1% and 61.6% respectively.

FRM Study Material

Here is a comparison between the study material that can be used to prepare for
your FRM Part I &II exams. It includes the study material available on the GARP site
and Schweser.Attribute FRM Books Schweser

Cost Part I Exam $250 + shipping $399

Cost Part II Exam $295 + shipping $399

Format Printed Printed

Practice Exams Yes, free on site Yes

End of Chapter Questions Yes Yes

Question Bank No Yes

Must-know quick sheet No Yes

Also you need to note that there are several packages that are available with
Schweser, you could choose the one with the features that suits your requirement.
Although for comparison purpose I have included the price and attributes of the
Essential Self Study Package. Further to decide whether to opt for the FRM
curriculum notes or the prep material will depend upon the time you are going to
invest in the preparation of the FRM exam.

FRM Exam Strategies: before the Exam

There is no magic, no short cuts but purely dedicated efforts that will get you
through. Lets look at a few points that you could consider including in your
preparation for the FRM Part I Exam.

Understand the curriculum- The first and the most important thing is to get a hang
of the entire syllabus that you are going to study. Take efforts to really understand
it.

Go through the GARP readings- It is important to go through the core GARP readings
at least once and also the FRM Handbook.

Find a study partner- If you can find a study partner. Look out for someone in similar
situation as your and a schedule. You can be good help to each other in case of
doubts and each partners strength in particular subject.

Start early- Get this straight, these are not your college exams wherein last minute
study could get you through. In order to prepare well start early and very well plan
the preparation schedule, accordingly decide how much time to dedicate for each
day. Especially if you are not someone from the finance and quants background you
will have to dedicate sufficient time for the preparation.

Stipulate your own hours of study- Though the recommended hours are somewhere
around 200 hours, doesnt imply you will clear the exam. These criteria are
completely subjective and requires sincere efforts ranging between 100-500 hours.

Prepare well for formulas and calculations- Important consideration for the exam
takers is that there is good amount quantitative aspect in the subject matter. The
mathematical difficulty of the Exam is similar to that of graduate level finance
course. Moreover, there are important formulas and calculations which need to be
known along with its correct application.

Prepare your own quick sheet- The syllabus involves hell lot of formulas (find them
at the end of every chapter) and methods to various measurement type. Mind you,
formula sheets are not provided with the exam. So you need to memorize them.
One way is to prepare your own formula quick sheet and keep referring to it
whenever you have free time during your work or while you are travelling.

Practice, Practice and Practice! Going through the notes, mugging up formulas is
only a part of the preparation. The key is going to be the amount of practice you do
on solving the problems. It might also happen that you practice today and might
forget after a week. So you cant do much here but just KEEP PRACTICING! Solve as
many practice exams which would give you a hang of how the real thing would be
like and make you confident for the final match.

Course is not a novel- You should not be reading whenever you get time only for 15-
20 minutes. Make a habit to study for hours at a stretch for 2-3 hours. Learn the
concepts and practice them immediately. If you do that right from day 1 you will not
feel the need to again and again read the concepts.

Solve sample papers by GARP- Going through the GARP core readings properly and
solving their practice exam (available for free once you register for the exam)
should give you a good confidence boost to clear the paper. Also, a few more
practice exams Schweser are never harmful. Although do not expect the same level
of questions to appear in your paper. Anticipate that the GARP guys will take you for
a ride. Simple- Prepare for the worst!

Prepare every section- Do not drop a few concepts and topics thinking that it is
unimportant. Such decisions could backfire. You just cannot afford to ignore any
formula from any corner of the books. STUDY EACH AND EVERY THING.

Dedicate at least 1 week before the exam- If you are working, try and take a week
off from before the exam and keep other commitments to the minimum. Use it to
stuff yourself with some concepts for that extra edge. Devote this time practicing
and rereading your material.

FRM Exam Strategies: During the exam

If you have prepared and done your homework well, the exam day should not be
much of a problem. Although I have listed down a few important suggestions that
could be important.

Keep difficult questions for the end- It has been observed by many exam takers that
last 10 or so questions were low-hanging fruits, which could be solved easily. This
can be unfortunate for those who because of lack of time cannot manage to get
that far and are forced to guess the answers. So it is always better to come back to
the difficult questions later on and keep answering the ones you know quickly.

Be quick and alert- Although you might feel you have enough time for each
question, keep one thing in mind the FRM questions are generally very tricky and
tough so u need to be alert and save time to solve the difficult ones.

Look for easy pickers- You will come across questions wherein you could quickly find
solutions. Look out for them as you will be able to solve them correctly within no
time. This will help you save time for other questions and also increase your
chances of clearing the sections.

Watch out for lengthy questions- Other type of questions that could be seen in the
exam are the ones that were quite lengthy in both words and in the number of steps
that were required to chalk out a solution. Plan out for them whether you want it
take it at the beginning or the end.

Scholarship Opportunities

Candidates that cannot afford and self-fund the FRM exam can access the
scholarship provided by GARP.

This scholarship would cover only the registration Fee for the FRM Exam Part I.

Also note that the scholarships are not available for the FRM Exam Part II.

The decision whether the scholarship has to be awarded to a particular candidate is

at the discretion of GARP and a candidate may be given only one scholarship with
no exceptions.

Although in order to avail the scholarship, the candidate will have to qualify. The
following are the guideline laid down by GARP;

Student must validate full-time enrollment in a graduate degree program at the

time of the Exam. So in case the student is currently enrolled in an undergraduate
or certificate program cannot qualify for the scholarship.

Faculty members would be eligible if they can validate full-time employment at their
institution. A complete application form which can be found on the GARP website
has to be submitted along with the documents.

FRM Exam Deferral policy

There could be situations wherein you cannot take the exam you have enrolled for.
In such cases a deferral may be considered. Here you are allowed to defer the exam
registration once to the next exam date. Although there are a few conditions;

The deferral has to be submitted by the last day of registration.

You will have to pay an administrative processing fee of USD 100.00 to defer your
Exam.

You will be automatically re-enrolled in the next Exam cycle and in case you decide
not to appear the next Exam, you will lose your Exam registration fee.
Useful FRM Exam Prep Resources

GARP Website

FRM Blog eduCBA

FRM vs PRM

FRM vs MBA

FRM vs CAIA

Conclusion

FRM certification should be chosen if you are keen on learning and pursing a career
in Financial Risk Management. FRM also provides opportunity to network with like
minded people and help you gain exposure in the Risk Industry. Though FRM does
not guarantee a job or a salary hike but yes it definitely gives you an edge over your
counterparts and provides with a reasonable advantage over your colleagues at
your workplace. Choose this credential keeping in mind the cost-benefit for yourself.
It requires good amount of commitment, discipline and hard work for it to be earned
successfully. All the very best!

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Comments

By yogesh agarwal on September 11, 2016 at 10:43 am

Hi,

First of all, thanks for taking the pain and passing a great piece of information, truly
appreciated.

My query is I have a 15 months of work experience in insurance company and 2

years of work experience in investment bank working in (interest rate
derivative,bonds and controls).

My question is whether frm will add value to my profile and whether the experience
is considered once I clear the exams?

Frm along with mba(finance) can support my career strongly?

Please reply asap.

Reply

By Dheeraj Vaidya on September 11, 2016 at 11:54 am

Hi Yogesh, My take is that FRM will add value to your current job and profile. Are you
an MBA or are you thinking of leaving your job and pursue MBA along with FRM.

You may have to weight all options including the opportunity cost of leaving your
current job and going ahead with FRM.

If you are in a good profile, MBA may not be totally required.

Do have a look at this post on FRM vs MBA

Reply

By asif on July 24, 2016 at 9:35 pm

I having general banking experience then which CFA and FRM is better for
me.otherwise I having

commerce background

Reply

By Dheeraj Vaidya on August 11, 2016 at 4:33 pm

Hi Asif,
Given your background in Commerce + General Banking, i think CFA will suit you
more. FRM is a bit mathematical in nature.

Reply

By sumanth on May 30, 2016 at 5:30 pm

Dear Dheeraj,

I have completd PGDBS(post grduation diploma in banking service) and presently i

am working in corporate credit department of Axis Bank. I want to enhance my
profile so, advice me which certification will help me whether it is CFA or FRM?

Reply

By Dheeraj Vaidya on May 30, 2016 at 5:53 pm

Hi Sumanth,

Since you are working for the credit department, FRM certification will suit you
more.

Thanks,

Dheeraj

Reply

By Naboshree Bhattacharya on May 9, 2016 at 6:20 pm

Hello Sir,

I have worked as an assistant professor and my area of PG is Economics with

specialization in Mathematical Economics and Econometrics. Statistics was also a
major subject.The subjects i have taught are Economics,Statistics and Banking.I
want to take up FRM exam this November.

Please advise.

Reply

By Dheeraj Vaidya on May 10, 2016 at 6:08 pm

Hello Naboshree,

With your credentials, It should be fairly easy for you to clear the FRM examination.

All the best,

Dheeraj

Reply

By Pratik on May 9, 2016 at 1:25 am

Hello Dheeraj

I have recently qualified as a Chartered Accountant and have experience in

advisory, internal and statutory audits. I want to pursue a career in risk
management and willing to appear for FRM part 1 in Nov 2016.
 Will my current experience and clearing FRM part 1 exam help me to get an entry
level job in risk management?

Thanks.

Reply

By Dheeraj Vaidya on May 10, 2016 at 6:14 pm

Hi Pratik, given you are CA with experience in advisory and audit, pursuing a career
in Risk Management should not be difficult. Once you clear FRM exam, you will
become eligible for such jobs.

Best of luck,

Dheeraj

Reply

By Chetna agarwal on April 10, 2016 at 3:24 pm

Thank u sir.. Your article is really good and proved helpful to me.. I wanted your
advise on my pursual on FRM as I would be giving my B.Com last year exams in this
month and I am also doing a course an capital market.. After this should I opt for
FRM ?

Reply

By Dheeraj Vaidya on April 20, 2016 at 2:20 pm

Hi Chetna,
If you are interested in Risk Management roles, then you can opt for FRM
examination. Please note that FRM contains is favourable for those who have
quantitative background and requires very limited/no accounting knowledge.

Best,

Dheeraj

Reply

By Anand kumar on November 17, 2015 at 12:40 pm

Hi

I am planning to give FRM I in Nov 2016,I am working as Manager-Credit Risk in one

of reputed financial services company and has more than 5 years of experience in
building statistical models such as Logistic Regression, Forecasting technique, score
card development using sas, sql and VBA in Insurance and Telecom industry.I am
also a CFA but last 5 years i have been working in Predictive analytics and my core
competency is statistics. I want to know that, does this experience will count after
FRM.

Reply

By Dheeraj on November 17, 2015 at 1:06 pm

Hello Anand, I guess your work experience may count. However, i think it is best to
check with GARP on the same.

All the very best!

Dheeraj
Reply

By Ashish on November 3, 2015 at 9:49 pm

Hi Dheeraj,

Currently Im preparing for actuarial exams and i have done my MBA in insurance
and risk management,I am working as business analyst in IT consulting firm from
last 6 months. Do you think FRM will help me to get a Job in Financial Risk
Management Industry..? As i have completely unrelated work experience.

Regards

Ashish

Reply

By Dheeraj on November 23, 2015 at 4:39 pm

Hi Ashish,

the answer to your question is a BIG YES!. please go ahead and take FRM exam, it
will add lot of value to your profile.

Thanks,

Dheeraj

Reply
By Gaurav Solanky on October 31, 2015 at 2:30 pm

Hi Dheeraj,

Thanks for insight on FRM exam pattern and things we should consider before
writing the exam. I am working as analyst in Derivatives and planning to write it in
May-2016, is it okay if I start studying with 2014 Schweser material as latest one
will come in next year Feb.

let me know your thoughts upon this. Thanks.

Reply

By Dheeraj on November 23, 2015 at 5:05 pm

Yes Gaurav,

the curriculum does change a bit but normally the changes are not earth shattering.
You can refer to your 2014 Schweser notes and make note of changes when they
come with the new material.

all the very best for your FRM exam,

Dheeraj

Reply

By sulley samo on October 28, 2015 at 2:10 pm

I have a degree in actuarial science from Ghana and want to know how easy/
difficult it might be for

me as am coming from the production field.

Reply

By Dheeraj on November 23, 2015 at 5:11 pm

Hi Sulley, if you are actuarial science student, then you will not find FRM to be very
difficult.

All the very best,

Dheeraj

Reply

By Khushbu Dubey on October 16, 2015 at 12:44 pm

Hi,

I am planning to give FRM I in May 2016,I am working as Relationship manager-

Equity at HDFC Securities and has 1 year of experience. I want to know that, does
this experience will count after FRM.

thanks.

Reply

By Dheeraj on October 19, 2015 at 5:32 pm

Hi Khushbu,

I am not sure if this experience would count or not. The best way to check is to drop
GARP a question on the same.

Best,

Dheeraj

Reply

By s.jain on September 17, 2015 at 3:07 am

i have cleared my ipcc exam of ca .and i have already registered for frm part1
exam for november attempt also i have taken classes in edupristine choaching
classes(video) i have a less knowledge about the quants..sir can u tell me how i
can well prepare for frm part 1 in a short period of time i have the material of
swcheccer and edupristinesir please tell me how many hours i have to devote for
frm part 1 exam

Reply

By Dheeraj on November 25, 2015 at 3:07 pm

Hi Subham,

Unfortunatley, no short cuts to success here! You need to devote the number of
hours required to go through the material first and atleast do one revision. Cant be
sure of how much time you may take in this process.
All the very best,

thanks,

Dheeraj

Reply

By Riaz on September 11, 2015 at 9:21 am

Hello Dheeraj,

I am planning to take on FRM level 1 in 2016 but I do not have any experience in
Risk Management side. I am working on the Banking Operations with no knowledge
of Financial Risk.

If i go through the GARP Books or Schweser Notes by myself. Will I be able to pass
the exam as I could not find any tuition or coaching available. I have educational
background of MBA Finance. I also intend to take up CFA but I have decided to take
it after FRM.

Reply

By Dheeraj on September 11, 2015 at 6:09 pm

Hi Riaz, if you are MBA Finance, then you will not have much problem with FRM. The
GARP books and Schweser notes cover the curriculum extensively.

All the very best,

Dheeraj
Reply

By Maarika on September 5, 2015 at 12:31 pm

I would like to appreciate you for the help provided through this blog post. Can you
guide me as to how difficult is FRM L1 compared to CFA L1 in terms of the
preparation level required?

Reply

By Dheeraj on November 25, 2015 at 3:33 pm

Hi Maarika,

It depends on your background. If you have an accounting background, then you

may find CFA easier. If you have quant background, then you may find FRM L1
easier.

thanks,

Dheeraj

Reply

By Benson on August 29, 2015 at 2:37 pm

Dear dheeraj
I work as a credit risk analyst. I wish to appear for both the levels together in may. Is
it advisable or should I concentrate on one level at a time?

Reply

By Dheeraj on August 31, 2015 at 1:08 pm

Hello Benson,

It totally depends on you only. If you have sufficient time for preparation, then you
can go for both the levels at once. However, if you think that you may not have
enough time to invest, my advise would be to take one level at a time.

Hope it helps.

Thanks,

Dheeraj

Reply

By Isana on September 2, 2015 at 7:27 pm

Dear Benson,

As a past FRM student who did attempt both levels at once, I do not recommend
it.

As Dheeraj has rightly pointed out, this is not a college level exam and requires a
lot of preparation. Also, the exam itself is exhausting for your brain and body.
Imagine 8 hours of sitting stiffly and staying alert!
Yes, it is possible but why do it? you just have to wait 6 months for the next level
and it can be covered at a decent pace.

Good luck!

Isana.

Reply

By Pj on August 13, 2015 at 12:00 am

Hello Dheeraj

I am hoping to take the november exam, i am currently working as a quantitative

analyst, will the FRM add any value to my role. i would also like to know how
possible is it to pass the FRM with just the GARP notes and practice tests, as I see
on most people recommend the schweser as thee best notes.

Thank you.

Reply

By Dheeraj on August 13, 2015 at 4:04 pm

Hi, FRM will definitely add lot of value to your resume. It is possible to pass the FRM
exam with just the GARP notes provided you have read and understood those
thoroughly. Advantage of Schweser kind of notes is that they are great time savers
and help you to focus on the important topics from examination point of view.

Eitherways, if you study and plan well, you should pass FRM exam!

All the best,

Dheeraj

Reply

By Anish on July 11, 2015 at 3:56 pm

I am working in a trade surveillance role at an investment bank under the

compliance division . Will the frm certification help

Reply

By Dheeraj on July 14, 2015 at 6:54 pm

Yes Anish, this FRM exam focuses on all kinds of risks including operational, credit
and financial risks. Taking FRM will definitely boost your career.

Reply

By yash on June 28, 2015 at 8:25 pm

Hi Sir,

Article was very helpful. I am currently working as a financial analyst and i am

specialized in performing equity valuation of privately held companies. I am
confused whether my experience will be counted for FRM or not.Please help

Reply

By Dheeraj on June 30, 2015 at 11:08 am

Hello Yash, you can try. I think your experience would get counted.

thanks,

Dheeraj

Reply

By Omkar Mehta on June 23, 2015 at 12:53 pm

I have completed the CFA Level 1 and Level 2 a year back. Now I am considering
appearing for both levels of the FRM in November 2015 and was wondering how
many study hours I should estimate. Will the CFA preparation help?

Reply

By Dheeraj on June 23, 2015 at 5:58 pm

Hi Omkar, your CFA preparation may not help much here as FRM is all about Risk
management and quantitative stuff. You may have to put anywhere between 150-
200 hours for each FRM level.

thanks,

dheeraj

Reply

By Namit Shah on June 22, 2015 at 12:03 pm

Thanks for this post. I have been following your blog from quiet sometime now and
find it really interesting. So please continue doing this cz it really helps. I am now
preparing for my FRM Part 1 November exam and want to know which would be the
best financial calculator for the exam?

Reply

By Dheeraj on June 22, 2015 at 6:42 pm

Hi Namit, many thanks.

The financial calculators permitted by GARP are Texas Instruments BA II Plus,

Hewlett Packard 10B II,10B II+,20B and Hewlett Packard 12C. You may use either of
them. I bought the Texas BA II and found that it was very easy in usage.

Thanks,

Dheeraj

Reply

By Namit Shah on June 23, 2015 at 12:46 pm

Thank you Sir!

Reply

By Dheeraj on June 23, 2015 at 5:58 pm

Thank you Namit!

Reply

By Sahil Khandelwal on June 22, 2015 at 11:45 am

Thank you Sir for this amazing article. My question is: What is the value of having
both the CFA and the FRM?

Reply

By Dheeraj on June 22, 2015 at 6:46 pm

Hello Sahil,

Apart from the knowledge in both the fields Risk Management (through FRM) and
Investment management (through CFA), its a great resume bullet point. It will be
easier for you to get shortlists in the company of your choice.

All the very best,

Dheeraj

Reply

By Shrimay on June 18, 2015 at 10:54 am

Many thanks for sharing such good information..I wish to pursue both CFA and
FRM..Will it advisable to appear for CFA and FRM Level 1 simultaneously?
Reply

By Dheeraj on June 18, 2015 at 11:30 am

Hi Shrimay,

taking the exam simultaneously is technically possible as the exam dates dont
clash. However, I hope you understand that the efforts required would double up. If
you are willing to go that extra mile to prepare for both the exams, nothing like it.

All the very best,

Dheeraj

Reply

By Amit Banerjee on June 18, 2015 at 10:46 am

I thoroughly enjoyed this extremely well equipped article about FRM. I am a huge
fan of wallStreetMojo, and have found a place that will answer my questions. I have
gone through all the articles on this site and found that all are superb in their own
ways. Keep up the good work.

Reply

By Dheeraj on June 18, 2015 at 11:33 am

Thanks Amit. I am glad you like the FRM article.

Reply

By ARINJAY on June 17, 2015 at 10:48 pm

Super excellent,

very finely differentiated and presented. I hope very soon you will start a course
that would be sub-FRM and it will cover all types of risks and its different Matrices of
Modeling with practical examples.

Thanks for update !

Reply

By Dheeraj on June 18, 2015 at 11:31 am

Thakn you Arinjay!

Reply

By Neeraj on June 17, 2015 at 3:43 pm

Excellent Article Quite Insightfull

Reply

By Dheeraj on June 17, 2015 at 3:44 pm

Thank you Neeraj

Reply

By Noor on June 16, 2015 at 4:06 pm

Dheeraj,

Thanks for your wonderful article. I am FRM aspirant. I am working for UKs largest
bank as technology lead under Risk domain. My main responsibility involves
delivering changes to BASEL III Credit grading/decision application. Though i am
not involved at risk model analysis, etc., but i have application knowledge as how
whole things work together. Not sure whether this is appropriate knowledge to be
considered for FRM?

Reply

By Dheeraj on June 17, 2015 at 3:46 pm

Hello Noor,

Many thanks for the appreciation. Your experience on Basel III and risk application
knowledge will definitely get counted!

All the very best for your FRM examination. When do you plan to take this?

Best,

Dheeraj
Reply

By Shreyans Garge on June 15, 2015 at 5:48 pm

An Excellent article for anyone who wants to know about FRM!!!

My query is- I work in a non banking financial institution and my job involves
performing basic analysis to clients creditworthiness like calculating some simple
ratios and ensuring that they meet the lending criteria. Would basic analysis like
this be considered as appropriate experience?

Reply

By Dheeraj on June 15, 2015 at 7:02 pm

Hello Shreyans, thanks for your query. If you are involved in measuring the
creditworthiness of the company, then you do have a relevant experience.
Remember that FRM has one of the core topics as Credit Risk.

Best,

Dheeraj

Reply

By Shalmali Desai on June 15, 2015 at 5:47 pm

Thanks for the great info. I was wondering if the CFA LEVEL 1 notes that i already
have with me would suffice for the FRM exam 1 preparation and if yes, in which
subjects.

Reply
By Dheeraj on June 15, 2015 at 7:00 pm

Hello Shalmali,

CFA Level 1 notes are different from FRM notes in many ways. I think the best
approach for you is to get teh FRM exam prep notes and study directly from the
those.

Best,

Dheeraj

Reply

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Dheeraj Vaidya, CFA, FRM

worked as JPMorgan Equity Analyst, ex-CLSA India Analyst

edu qualification - Mech Engg, IIT Delhi + MBA, IIM Lucknow

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