I am enrolled for the FRM exam to be held on Nov. 17. Any helpful suggestions to help prepare for the exam would be welcome.

what is FRM?

The FRM (Financial Risk Manager) exam is conducted by GARP (global association of risk professionals). The next exam in India is to be held on Nov. 17 2007. The course curriculum covers topics on market risks, liquidity risk, credit and operational risk, Fixed Income, Derivatives, etc. The course is suitable for executives in the Banking, financial services industry, etc.

surfer, is it an online exam or one has to go to USA to take it or they have a centre in india.. and how many times is it held. moreover is it recognised by AICTE as i do not want to do any such course for which AICTE cancells the exam at the last minute.. like it happened with CFA..

will you be kind enough to tell me the cost and the benefits of this course. i would appreciate if you can also provide their website so that i can find out more information

The cost of registration for this exam is approx 650 USD. You can register on the website www.garp.com on which the curriculum, etc. is also provided.

Surfer,
I saw the content of FRM. it is very much similar to CFA level 1.. Would you say that if someone has passed level 1 of CFA then he can easily pass it? i mean what is the difficulity level of this exam

there are two programs in risk management - FRM and PRM. which one is
better in terms of industry relevance, recognition,cost, difficulty levels etc.



Edited 2 time(s). Last edit at 07/08/2007 04:15AM by indianstud.

I would say that the CFA program is more focussed on the asset management part of finance and the FRM program is more focussed on the risk management part of finance. FRM curriculum covers more of credit analysis etc whereas the CFA curriculum (especially level II) covers more of valuation related topics.

is there any basic qualificaation that a person must have to pursure fRM..
also whaat is the scope of FRM in indian context?

hi,
i have complied some info on FRM for the benefit of all of us... please let me know if you need any specific information.

Financial Risk Manager (FRM)


The FRMŽ designation, first awarded in 1997 by the Global Association of Risk Professionals (GARPŽ), is a globally recognized standard for professionals in the financial services industry, and indicates that an individual possesses the body of knowledge necessary for independent risk management analysis and decision making.


FRMŽ for Whom


The FRMŽ exam is designed to measure skills and knowledge acquired to a large extent through professional experience in financial risk management or a related field. This includes professionals who are involved in controlling, analyzing, or @#$%& potential market, credit, and liquidity risks as well as non-market related risks.

Benefits of being FRMŽ Certified


Recognized by your peers and employers as an expert in financial risk management

Expands your career opportunities
Enhances your salary leverage
Provides an Objective demonstration of your competency

FRMŽ Certification Requirements
In order to be certified as a Financial Risk Manager (FRMŽ) and be able to use the FRMŽ acronym after your name, the following is required:

A passing score on the FRMŽ Examination.
Active membership in the Global Association of Risk Professionals.
A minimum of two years experience in the area of financial risk management or another related field including, but not limited to, trading, portfolio management, academic or industry research, economics, auditing, risk consulting, and/or risk technology.
FRMŽ Exam Structure
The FRMŽ exam is based on the core body of knowledge that contains the following topics:

Quantitative Analysis (10%)
Market Risk Measurement and Management (25%)
Credit Risk Measurement and Management (30%)
Operational Risk Management and Legal, Accounting, and Ethics (25%)
Risk Management and Investment Management (10%)

FRMŽ Exam Registration & Fees
All individuals interested in sitting for the 2007 FRMŽ must complete and submit our on-line registration form. NO APPLICATION WILL BE ACCEPTED AFTER OCTOBER 15, 2007.
Click Here to Register for FRMŽ

GARP Individual Membership is required to sit for the FRMŽ exam. The FRMŽ fee noted below includes the Individual Membership fee. If you are currently an Individual GARP member and your membership registration will not expire on or before the FRMŽ exam date you do not have to include the membership fee with your FRMŽ exam registration fee.

Early Registration (March 1 - April 30, 2007): New Candidates : For Exam USD 400, USD 100 for GARP membership fee; Returning Candidate : For Exam USD 300, USD 100 for GARP membership fee
Standard Registration (May 1 - August 31, 2007): New Candidates : For Exam USD 550, USD 100 for GARP membership fee; Returning Candidate: For Exam USD 400, USD 100 for GARP membership fee
Late Registration (September 1 - October 15, 2007): New Candidates : For Exam USD 800, USD 100 for GARP membership fee; Returning Candidate: For Exam USD 600, USD 100 for GARP membership fee
Initial FRMŽ Examination Sites in India

New Delhi,
Mumbai/Bombay and
Bangalore

do visit [www.garp.com] for further information.....

Ravi: the scope of risk certifications is certainly increasing in India with all major I-banks seeting there back offices here....but a point to remember is that for risk (or any other quantititive profile) FRM/PRM is only going to be an icing on the cake...and the cake most of the time will be made of the solid masters degree in a quantititative discipline....

this does not take anything away from the certification....it is still the icing we would love to have.....

by the way, gained my FRM and PRM certification in 05 and 06 resp.....



Edited 1 time(s). Last edit at 07/27/2007 08:18PM by shweta.

Hi risk analytics
It is great to interact with a qualified FRM and PRM certification holder. I am registered for the November 2007 FRM and would appreciate if you could share some tips on the most effective way to prepare for the FRM exam.

Surfer:

first of all caveats: i passed in 05 and hav seen the new curriculum and can vouch that it has changed considerably in last 2 yrs....so everything i say must b taken with a pinch of salt.....

by the way....i really like these modifications and GARP's attempt to keep the cert as contemporary as possible.....

my tips to pass the exam (nothin to do necessarily with being a good Risk Pro) would be :

1. Follow Schweser: they r too good....if u hav time only for one thing then it must b their study mat....try to do everything including mock test...

2. Do mock test atleast 4-5 days before the exam so that u can identify ur weak areas and work on them accordingly...

3. try last few yrs of question paper....dont fret over question u donot understand at all....the syllabus has evolved over the years....

4. Jorian Handbook: Only for those who can confidently handle the study mat....

5. Know your calculator...sounds trivial but can wreak a havok on exam day....

6. Know what to leave in exam....anyone has studied hard can perform cholesky decomposition in exam....but is it worth the time....only if u r done with everyting else....

7. expect the exam to be quantitative.....CFA hangover will not work....

8. remember that the cert is supossed to become increasingly difficuilt to get every year to retain whatever value it command in the industry....so expect low pass rate, tougher question papers and prepare accordingly....

9. Finally take it seriously....I know IIT/IIMs grads fumbling in exam.....only their lack of seriousness can explain such failures....let go of ur epistemic arrogance...

wishin u all gr8 luck...

Hi Risk Analytics
Your advice is really useful especially the point no 7 about the CFA hangover. I just sat for the level III of the CFA exam and thought that the FRM exam would not be that taxing. But now I feel that I should not take it so easy. Which would you say is more quantitative - the FRM exam or the level II of the CFA exam?
Also your point about the certification becoming more difficult with the passage of time - I think the same applies to the CFA exams as well. With new enrollments from countries such as India reaching record levels the examining bodies will have no choice but to set tougher exams each year.