Why does the GARP Association divide the FRM exam into 2 parts?

The GARP Association has improved its FRM certification program in response to changing global markets and increasingly complex financial risk management. The purpose of the revised FRM exam syllabus is to more fully gauge candidates' understanding of the necessity of financial risk assessment tools and their ability to use them in practical models. With the implementation of the revised FRM Certification Program, the FRM Committee and Board of Directors of the GARP Association have agreed that FRM will continue to evolve with the times and represent high standards recognized worldwide.

In order to cope with the changing global market and the increasingly complex financial risk management, the FRM exam is divided into two parts.

In the FRM level, some basic knowledge is introduced, such as common financial derivatives, models and calculation formulas. In FRM Level 2, candidates are tested on their use of these basic knowledge. The FRM Level 2 exam consists of 80 multiple-choice questions, which is less than Level 1, but the difficulty is not reduced.

In preparing for the exam, it is necessary to understand the knowledge points, not rote memorization, and combine concepts with practice.

FRM (Part 1) focuses on basic theoretical knowledge of financial instruments, basic knowledge of financial markets and their detailed definitions, and methods of measuring risk. The objective of this part of the exam is to ensure that FRM candidates have a better understanding of the basic financial instruments that are required to be successful financial risk managers. Exams focus more on conceptual understanding than practicality.

FRM (Part 2) emphasizes the relevant concepts of financial risk management application, and focuses more on testing candidates' ability to apply financial instruments on the basis of FRM Part 1. and extend the risk measurement approach beyond the value-at-risk approach. Compared to the first part of the exam, the second part of the exam is more about case analysis and is more practice-oriented.

In 2008, the volatile global financial markets brought the world to a new understanding of the financial crisis. As a result of the upheaval in global financial markets over the past 24 months, financial risk management has once again attracted significant attention from industry and non-industry players around the world due to its importance and complexity.

FRM certification is extremely lacking in practical content, still in the theoretical stage, and somewhat lags behind the changes in the global financial market, but the CFA itself focuses more on financial analysis than on global financial markets and risk management. Otherwise, in the first-level exam, it will be very stressful for both the candidate and the FRM teaching to be examined.

As a result, at the end of February 2009, the GARP Association published the latest FRM Study Guide, which introduced important changes to the FRM exam. In order to adapt to the changing market and the current requirements for a qualified Risk Manager, the FRM Examination Board of the GARP Association has officially announced that the FRM exam will be divided into two phases: Level One and Level Two.

The Level One exam mainly covers the basic concepts of risk management, quantitative analysis and valuation and analysis of financial products in the global financial markets.

The Level Two exam mainly examines the practical content of market risk, credit risk, operational risk and comprehensive risk management, focusing on the measurement and management of risk. At the same time, some of the current hot issues in the financial market have been added.

Hello classmates, I'm glad to answer for you!

In order to adapt to the development of global financial markets and to better understand the complexity of financial risks, GARP has revised the examination method of the FRM certificate. In order to meet the needs of the market, this year the GARP has put the revision on the agenda. Garp believes that risk management is a dynamic discipline that must constantly change with changing market conditions.

What has happened in the past year has deepened our desire for experienced risk managers. The purpose of the FRM revision is to enable risk managers to ensure that their skills are adequate to cope with this ever-changing, interconnected financial environment, and to better test whether the referee has mastered the skills of risk management and is better able to apply the knowledge they have in practice. This revision is to ensure that FRM is constantly updated and remains a globally recognized test standard.

Hope mine can help you solve the problem, if you are satisfied, for yo.

Gordon wishes you a happy life!

If FRM is found out, there is nothing to be done, so let's give up this exam for the time being.

However, you don't have to worry about the CFA exam, because the FRM and CFA exams are conducted by independent institutions, and the information is not exchanged, and the FRM has little impact on the CFA regardless of the result.

But don't do this kind of thing in the CFA, the CFA official agency is much larger than the FRM Garp agency, and once you are investigated or documented for cheating or non-compliance with professional ethics, it will have a great impact on you.

Hello classmates, I'm glad to answer for you!

If FRM is found out, there is no way, just give up this exam for the time being, but you don't have to worry about the CFA exam, because the FRM and CFA exams are hosted by independent institutions, and the information is not exchanged, and FRM has little impact on CFA no matter what the result is.

But don't do this kind of thing in the CFA, the official CFA agency is much larger than the FRM's GARP agency, and once you are investigated or recorded for cheating or non-compliance with professional ethics, then the impact on you is unprecedented. In fact, FRM is getting colder and colder now, and in 2010, there were only more than 9,000 people in the world taking the exam, which can be said to be worse than a year, and there is no comparison with CFA. You focus on CFA, CFA is also a certificate in finance, but many non-finance majors are also examined, and the pass rate is not low, so work harder, or apply for a training course, I believe you have no problem.

Gordon wishes you a happy life!

Hello, happy with your question.

Learning materials available on the official website.

1、frm learning objectives

This learning objective is a detailed and clear framework for the FRM exam published by the association for the majority of FRM candidates. Candidates can learn about the points to be examined in each section, and if they have enough time, they can also look at the content of the original book according to the reference books given in this document.

This document includes the weighting of each section, a clear course reading, and the main points of each section. The association also recommends that candidates use it as a guide throughout their preparation process.

To put it simply, it is a simple syllabus for candidates, and candidates should review according to the syllabus when revising, and do not omit anything. Most students will choose to use Notes and this material at the same time to make up for the lack of Notes.

This is the syllabus, it is worth noting that this syllabus includes the content of the syllabus of level 1 and level 2, and it is not separated, but most people will choose to use FRM study gaide changes, and it is more convenient to see the syllabus changes with study changes.

Official textbooks

On the official website, we can see that there are FRM official textbooks for sale, but everyone has seen that the price is relatively expensive, even if it is an electronic Sentong book, it is not cheap. Moreover, most candidates will not use this textbook too much when studying, because there are too many knowledge points contained in this textbook, so many students who are just for the examination will not have the energy to read it.

exam

The GARP Association also gives FRM practice exams for previous years. This set of practice questions, the question type is exactly the same as the actual test, and candidates can know their speed when doing this set of questions, and know how much time they should spend on each question to complete the test questions in 4 hours. For candidates, this is a must-have question before the exam, and this information can be used for free on the official website of GARP.

The notes and handbooks that we are more familiar with are produced by Kaplan, a third-party publisher, and we can't find resources on the official website of Garp. Thank you!

For such an official website, there is such a special material for learning, but you need to pay a fee.

If you want to go on the official website like this, there will be three kinds of learning materials, and you can choose according to your requirements.

For FRM holders, the GARP Association has a continuing education program, but it is a recommended and not mandatory program.

GARP is a not-for-profit, independent organization that is one of the leading advisory bodies to the Bank for International Settlements (BIS) on risk management, with the aim of facilitating the exchange of information on risk management, conducting qualification examinations for risk management, and developing technical specifications and evaluation standards in the field of financial risk management. It is not the function of the GARP Association to provide continuing education.

However, in order to prepare FRM holders with the ever-evolving knowledge of financial risk management, the GARP Association has been introducing a continuing education program to all FRM holders since 2010. However, unlike many other associations that require a certain number of hours of follow-up education each year after obtaining a certificate, FRM holders are willing to participate, and continuing education is not a mandatory indicator of the GARP Association.

In the first quarter of 2010, the GARP Association will introduce a voluntary continuing education program to all FRM charterholders.