Regarding whether FRM exam is suitable for self-study preparation or professional training, the president of GARP Shanghai Branch mentioned in a speech: "Frankly speaking, FRM is an international financial professional qualification exam that is difficult to complete through self-study." Choose to jump, worry-free throughout!
There is no full-time questioner in GARP, and all the FRM exam questions are completed by the selected global 5%*3FRM holders * *, so the key points, difficulties and questions of FRM exam change greatly every year.
The difficulty of getting started with FRM
According to the GARP Association, the entry threshold for FRM is actually very low, and there are no restrictions on academic qualifications and majors. Anyone who wants to take the FRM exam can sign up. Its potential threshold is still there. Inventory is as follows:
1, finance. The association does not explicitly require financial foundation, but in order to quickly understand FRM knowledge points, candidates should have a framework understanding of financial knowledge.
2. English. FRM will only provide American English exam questions. According to experience, only when candidates reach CET-4 and master financial English can they learn FRM well.
3. Mathematics. FRM exam mainly involves statistics and probability. If candidates can master the above contents well, it will be of great benefit to learn FRM.
In a word, the threshold for entering FRM is still very high. Although candidates can make up for it through the efforts of the day after tomorrow, it is a "threshold" that cannot be ignored.
FRM exam subject difficulty
From 20 10, FRM was changed from exam level 1 to exam level 2. Difficulty of FRM level 1 and level 2 exams.
FRM level 1 exam difficulty:
The main subjects at FRM level are: risk management foundation, quantitative analysis, financial market and products, valuation and risk model. Among them, three or four subjects are the difficult points in the exam.
The financial market and products are the focus of the exam, including various derivatives, interest rate futures, MBS and so on. It is very important to understand concepts and formulas.
Every year, we also pay attention to options, bond valuation and market risk in valuation and risk models. The first two parts have more calculations and more quantitative analysis models, so we should understand them more.
Another difficulty of FRM level is calculation. Too much calculation is a headache for candidates. Candidates must pay attention when preparing for the exam.
FRM level 2 exam difficulty:
The second level of FRM is mainly composed of five parts: market risk management and measurement, credit risk management and measurement, operational and comprehensive risk management, investment risk management and financial market frontier topics.
Market risk, credit risk and operational risk are the secondary concerns of FRM. There are still some calculation problems in this part of market risk management, so don't take it lightly.
Then credit risk can't escape calculation, and there are many models in PD measurement of default probability. Then there is operational risk, and the measurement method of operational risk is investigated. The Basel Accord is also in this part.
To sum up, there are many calculation questions in FRM Level 1 exam, and candidates should have a certain understanding of financial vocabulary. The application of FRM level 2 is more practical than FRM level 1, which is not simple.
It is impossible to cultivate good and effective test-taking skills and techniques simply by doing some old real questions and the so-called "full real question simulation questions" circulating in the market. Therefore, no matter what academic background or work experience FRM candidates have, it is very necessary to choose a training institution with strong teachers, R&D characteristics and serious service.