Is the FRM exam the same as the CFA, an all English exam?

The FRM exam is an all-English test, but the requirements are not too high, but it is still difficult for us. This is an international exam, and we are not only competing with people at home, but also with people from other countries around the world. Therefore, for Chinese candidates who grow up in the Chinese environment, it is very difficult to learn FRM when facing the test papers and teaching materials in English.

In fact, the FRM exam is all multiple-choice questions, and the exam does not examine the use of grammar, as long as you read it smoothly, but there are a lot of professional financial vocabulary, coupled with the super long question stems in the FRM test paper, which tests the candidates' reading ability very much, so it is very important to improve the English reading speed and find the right keywords.

Both exams are in English.

Difference Between FRM and CFA:

FRM is a certification certificate for risk management, and CFA is a more authoritative certification in the financial industry.

The main differences are:

1. FRM is now divided into part1 and part2 exams, which can be taken together at one time, that is, you can complete the exam in half a year at the earliest; CFA is divided into three levels, Level 1 is tested twice a year, Level 2 and Level 3 are taken once a year, so you need to complete the test in 2 and a half years at the earliest.

2. FRM focuses more on risk management, and there are many very deep risk management models in it, which are still very biased.

CFA Level 2 Derivatives contains more pricing models, and the rest covers a wide range of financial statements, ** theory, valuation pricing (including secondary market and PE VC), corporate finance, asset management theory, etc.3, FRM certification in the United States is not as good as CFA, and GARP is not particularly famous.

4. CFA will be forced to purchase textbooks after registration, and FRM does not specify textbooks, but only specifies some books as bibliographies; However, when I take the exam, I generally buy notes, and the notes of FRM are poorly written, and many of the contents are not in-depth or unclear.

5. For master's students who are more mathematically oriented, if you are not doing risk management, then take the CFA exam first to make up for your financial knowledge. There is not much to learn to do quant in China, it is good to have a solid foundation in mathematics and science, and it is good to have strong programming, after all, there are no derivatives that need pricing, and it is basically doing some statistical work. If you are doing foreign pricing quant related work, you need to be familiar with the derivatives structure and market, including market data, etc., and you need to be familiar with it the fastest.

The FRM exam is conducted entirely in English.

The content of the FRM Level 1 exam is as follows:

1. The annual focus of the risk manager level of Jinwang Shanrong is also on the valuation and risk model of options, bond valuation and market risk (such as VAR). The first two parts have a lot of calculations, especially the quantitative analysis part, there are many models, and it is necessary to understand more.

2. Mainly examine the basic content of financial risk management, including the basic content of financial risk management, quantitative analysis, financial markets and products, valuation and risk modeling. This course examines candidates' valuation and risk control of financial markets and products, especially derivatives.

3. The first-level examination of financial risk managers mainly focuses on the relevant content of financial markets and products and valuation and modeling, accounting for 60% of the weight. To enable candidates to have a basic understanding of financial products and reasonable control of major financial risks.

FRM Level 2 Main Exam Content:

1. The Financial Risk Manager Level 2 exam focuses on the application of the tools obtained in the Financial Risk Manager Level 1. Among them, the key subjects of the second level of financial risk managers are: market risk, credit risk and operational risk.

In fact, in the part of market risk management, there are still calculation questions, so don't take it lightly.

2. Then the credit risk part cannot escape the calculation, and there is a large number of trapped models in the PD measurement of the probability of default. And then there's the operational risk, which looks at how operational risk is measured, and the Basel Accord is part of that. Click here for a free consultation with FRM Masters.