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    FRM Certification Notes

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    litee1983

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    © All Rights Reserved
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    FRM Certification Notes

    Uploaded by

    litee1983
    3 views2 pages

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    FRM Certification notes

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    3 views2 pages

    FRM Certification Notes

    Uploaded by

    litee1983

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Overview of FRM Certification

    1. Purpose:
    o The FRM certification is designed to equip professionals with the knowledge
    and skills necessary to identify, assess, and manage risk in financial
    institutions.
    2. Target Audience:
    o Risk managers
    o Investment professionals
    o Financial analysts
    o Credit officers
    o Regulatory risk analysts
    3. Global Recognition:
    o The FRM is internationally recognized and respected by banks, asset
    management firms, consulting firms, and regulatory bodies.

    Exam Structure

    1. Two-Part Exam:
    o FRM Part I:
     Focuses on the tools used to assess financial risk.
     Topics include Foundations of Risk Management, Quantitative
    Analysis, Financial Markets and Products, and Valuation and Risk
    Models.
    o FRM Part II:
     Emphasizes the application of risk management tools and techniques.
     Topics include Market Risk Measurement and Management, Credit
    Risk Measurement and Management, Operational Risk and Resiliency,
    Liquidity and Treasury Risk Measurement and Management, Risk
    Management and Investment Management, and Current Issues in
    Financial Markets.
    2. Exam Format:
    o Multiple-choice questions.
    o Both parts of the exam are typically administered twice a year, in May and
    November.

    Study Resources and Preparation

    1. Official GARP Materials:


    o GARP provides study guides, practice exams, and reading materials.
    o Essential readings from textbooks and articles specified by GARP.
    2. Third-Party Prep Providers:
    o Numerous third-party providers offer study courses, practice exams, and
    supplementary materials.
    o Popular providers include Schweser, Bionic Turtle, and Wiley.
    3. Study Time:
    o GARP recommends 200–240 hours of preparation for each part of the exam.
    o Actual study time may vary based on individual background and experience.
    Certification Requirements

    1. Passing Both Exams:


    o Candidates must pass both Part I and Part II to earn the FRM certification.
    o There is no requirement to pass both parts within a single year, but Part II can
    only be taken after passing Part I.
    2. Work Experience:
    o Two years of relevant work experience in risk management or related fields.
    o Experience can be obtained before or after passing the exams.
    3. Maintaining Certification:
    o Continuing Professional Development (CPD) is encouraged but not
    mandatory.
    o GARP provides resources and opportunities for CPD.

    GARP: The Global Association of Risk Professionals

    1. Role and Mission:


    o GARP is a leading organization for risk professionals, providing education,
    training, and a globally recognized certification.
    o Their mission is to advance the risk profession through education, training,
    and the promotion of best practices globally.
    2. Membership Benefits:
    o Access to a global network of risk professionals.
    o Discounts on educational resources and events.
    o Industry insights and updates through publications like the "Risk Intelligence"
    journal and newsletters.
    3. Events and Networking:
    o GARP hosts events, webinars, and conferences to facilitate networking and
    knowledge sharing among risk professionals.
    o Regional chapters provide opportunities for local engagement.

    Career Impact

    1. Enhanced Credibility:
    o Holding an FRM certification signals a high level of expertise and
    commitment to professional development in the field of risk management.
    2. Career Advancement:
    o FRM certification can lead to career advancement opportunities in risk
    management, including higher positions and increased responsibilities.
    3. Global Opportunities:
    o The FRM is recognized worldwide, opening up opportunities for international
    careers in risk management.

    In summary, the FRM certification from GARP is a comprehensive and globally respected
    credential that validates expertise in financial risk management. It requires rigorous
    preparation and provides significant career benefits for professionals in the financial sector.

    4o

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