FRM Exam Format- Structure & Content

FRM Exam Format- Structure & Content:- 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.

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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.

FRM Exam Format

The FRM program is divided into two parts. Both can be sat on the same day in May or November (although we recommend you only sit one part at a time). There are no penalties for incorrect answers.

Best Recommended FRM Part I Video Lectures

FRM Exam Format- Part I

The table below shows you a breakdown of the topics covered in this level.

FRM Exam Format- Part II

Candidates must pass Part I of the FRM exam in order to have Part II graded.  The table below shows the breakdown of the topics covered in this part.

FRM Exam Format- FRM Part I

• 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 Exam Format- FRM Part II

• 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 Format- FRM Part I

• 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.

Recommended Read:- All About FRM Exam – Preparation Study Materials

FRM Exam Format- FRM Part II

• 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

Best Recommended FRM Part II Video Lectures

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frm-exam-format

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