PRM Preparation:- PRM Exam schedule and tests are organized in a flexible manner. That is good news for everyone. Unlike, FRM (Financial Risk Manager) Exam, PRM Exam is offered four times a year. Also, the four exam parts can be taken in any order. Furthermore, CFA Chartered and Associate PRM Certificate holders are rewarded partial credit. University graduates who have completed certain courses approved by the PRMIA (Professional Risk Managers’ International Association) accredited degree programs are exempted from PRM Exams I and II.
Merely studying for PRM exams and the sample exam practice papers will not be sufficient for you to crack the PRM exams. You will be required to keep yourself updated by reading industry magazines, company policies and procedures, reading risk reports, attend risk management conferences, academic journals, attending PRMIA Chapter Meetings etc. activities will prepare you well for the PRM exams.
PRM Preparation- PRMIA Handbook Series
- The Professional Risk Manager Handbook Series, (Latest Edition) is the required study resource for the PRM exams.
- You can purchase this study resources by purchasing the voucher bundle from the PRMIA website.
- PRMIA provides the Study guides and training courses (Sample Question Papers) which will be helpful for you to prepare for the PRM exams.
- The PRM Handbook Series and supporting materials provided by PRMIA are designed for self-study.
PRM Preparation –PRM Handbook Series Details
|Exam||Exam Name||PRM Handbook Volume/Resources|
|I||Finance Theory, Financial Instruments & Markets||Volume I: Book 1 Financial Theory and ApplicationVolume I: Book 2 Financial InstrumentsVolume I: Book 3 Financial Markets|
|II||Mathematical Foundations of Risk Measurement||Volume II: Mathematical Foundations of Risk Measurement|
|III||Risk Management Practices||Volume III: Book 1 Risk Management Frameworks and Operational RiskVolume III: Book 2 Credit Risk and Counterparty Credit RiskVolume III: Book 3 Market Risk, Asset Liability Management and Funds Transfer Pricing|
|IV||Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws||Case Studies, PRMIA Standards of Best Practice, Conduct and Ethics, Bylaws|
- Preparing for PRM exams will greatly differ according to the knowledge, skills and understanding about the subject matter prior to your self-study.
- And the study time will also vary according to your ability to commit dedication for uninterrupted time to studies as well as for other factors too.
- Over-all if you are preparing for the PRM certification examinations you will be required to allocate 8 – 9 hours per week for 3 months for each exam.
- If in case you have a busy schedule, you can take the required exams at your own pace, in any order, over a period of up to two years. As each exam differ in length from one to two hours, so you can take 2-3 exams at once and save your time the time for the difficult exam.
- Once you are comfortable with readiness, it’s time for you to register for the exam.
The preparation time for each exam is different.
Exam I and Exam III are lengthiest as they have more topics. Both these exams will require approximately 150 to 200 hours of study time.
For exam IV, how much time you will spend completely depends on your educational background. If you have a math background, it may take very less time (less than 100 hours). Without math background, you will have to build your knowledge from scratch and it can take longer.
Exam IV is the easiest and the study material is very concise. In my view, you won’t need more than 30 hours of study time for this.
The best way to study is to spend maximum time is reading the material (about 70%), and the remaining time (30%), for solving the practice tests and revising the material.
Each exam provides plenty of time to answer the questions. Most likely, you will be able to complete the exam within 70% of the allotted time. So, you will have enough time to review the questions.
The best way to approach the paper is to not spend too much time on any question in the first run. Look at a question, and try to answer it. If you can answer it within reasonable time, say 2-3 minute, well and good. If you think you will take longer, just skip that question and move on to the next question. This way you would have gone through all the questions in half the time. In the remaining time you can come back to these unsolved questions and attempt them.
Another important point is that there is no negative marking for wrong answers. So, don’t leave any question unanswered, even if you are not sure of the answer.