6 months ago
Financial Risk Management (FRM) is hot these days. Many companies are seeking after credit risk, market risk, regulatory risk, and operational risk managers. What’s more, these companies are ready to pay lavish salaries to their FRM professionals.
So, what if you are or aspire to be one of them? You’ve got to pass the authoritative FRM exam offered by the Global Association of Risk Professionals (GARP). But first, you’ve got to prepare for it. Don’t worry! The Typical Student team has prepared 5 best FRM certification preparation tips for you in this article.
What Is FRM Certification?
FRM certification is a process that one undergoes to acquire FRM designation awarded by the Global Association of Risk Professionals (GARP). In general, the FRM certification process comprises three stages:
FRM Exam Trivia
So, if you want to earn the FRM designation, you’ve got to pass two consecutive FRM exams: Part I and Part II. Both are carried out twice a year: in May and in November. The price for one exam ranges from $750 to $1,500, depending on the time you register for an exam. Based on all FMR exams held in 2010 – 2017, around 46% of all who take the exam pass Part 1 of the certification, and around 57% pass the second part of the exam.
FRM exams come in form of multiple-choice questions. You’ve got 100 questions in Part 1 and 80 questions in Part 2. The exams cover five topics, weighed as follows:
FRM Certification Advantages
Needless to say, there are many gains associated with becoming a certified FRM professional:
Industries that Employ Certified FRM Specialists:
5 Best FRM Certification Preparation Tips
So, let’s say, you’ve decided to take an FRM exam in the nearest future. Then, follow these 5 simple tips to maximize your chances to pass it:
Tip #1: Don’t Pull It Off
To pass both parts of the FRM exam, you’ve got to study approximately 200-240 hours. You know what this means? FRM examination is designed to eradicate cramming fans. You won’t ever be able to digest such an amount of information if you cram.
Tip #2: Take Your Time To Practice
What’s more, FRM exam questions do not test your memory for terms and concepts. A number of exam questions consist of real-life cases, which make you analyze the questions and apply the theoretical knowledge you gained in practice. You can reach this level of risk management skills only if your study regularly, intermingle theory with practice and take your time to digest new knowledge.
Tip #3: Save One FRM Practice Exam For The Last Week
It’s smart to simulate taking an exam before you actually take it. To do this, spare one FRM practice exam for the final week. Don’t peek into it or read the answers. Then, start doing it with all the textbooks closed and appropriate timing. Once you’ve completed the entire exam, check your answers and see whether there are any last-minute gaps in your knowledge to fill in.
Tip #4: Drop By Exam Center Beforehand
It’s not a nice surprise if you can’t find the exam center or a parking lot on the day of the exam. So, you better visit the center before the exam and familiarize yourself with the area.
Tip #5: Keep Calm The Night Before
To pass the exam without silly mistakes, you’ve got to have the ability to concentrate and a well-rested mind. You won’t have any of those if you’re overcrowded with last-minute cramming having pulled an all-nighter. So, get some good rest and 7 – 9 hours of sleep the night before the exam and you’ll see that this pays off.
These were the tips for today. We hope they help you pass the upcoming exam and take you one step closer to FRM certification. Good luck!
Keep up with the Typical Student daily email