FRM is a critical designation highly recognized in the management world as it is endorsed by the GARP. As FRM implies financial risk management, preparing for the FRM exam is too risky if you do not invest adequate time into the FRM syllabus. If you are too passionate about making a career as a financial risk professional, you need to take the first step of obtaining a certification in FRM.
To obtain the global gold standard certification, you need to pass two parts. Part 1 usually deals with fundamental topics, risk tools, and models and how they build on to contribute to the whole risk management process. An advantage of Part 1 is you would identify which companies comply with risk and keep governance in place. A turning point why FRM courses saw a rise is due to the financial crisis in 2007-08. On the other hand, FRM part 2 deals with the application of tools of part 1 and current challenges dealing with credit risk, operational risk, investment, and financial markets. To get a hang of the Part 2 FRM, we bring you an exciting map to help you become a successful risk manager of tomorrow.
As a primary requirement for doing your part 2 FRM, you must pass the part 1 FRM exam as a mandate. Secondly, time management is key as the FRM part 2 comprises 80 questions that are required to be answered within 4 hours, and scoring 60 out of that is considered safe to pass the FRM exam. Watch out, the questions in part 2 are more linked to a particular scenario, hence reading and comprehension ability needs to be mastered at this level.
The exam weight is over 20% for market risk, credit risk, and operational risk concepts more than liquidity & treasury, investment, and current issues. So it is better that you take a deep dive into these critical concepts to pass the FRM part 2. Don’t panic as the part 2 exam has no negative marking. So keep calm and confident while answering the questions.
Preparation strategy is yet another bottom line to pass the dreadful FRM part 2 as the pass rate stands only at 50%. One of the winning strategies is to subscribe to the original FRM study package introduced by the Schweser-Miles partnership that helps candidates with a first-hand world-class learning experience through a cutting-edge course curriculum designed and delivered by world-class FRM industry experts and frontline professionals. The study package also has mock tests, master classes, and performance metrics to assess and evaluate your exam-taking skills and gives you a passing commitment. The study package is greatly welcomed by professionals as it is more flexible and lifestyle oriented.
The most impressive side of getting an FRM certificate is the salary package. According to certain estimates, the average median salary that FRM professionals get in leading companies and firms is up to 10 LPA and beyond. But if you are aiming to go to the US, then the salary expectation may go up to $ 99,000 PA. However, earning potential differs with FRM professionals as it has much to do with the experience and profile that you hold.
According to a survey, 2.3% of the Indian population is trying to move their investment and savings into capital markets and hence widening the job opportunities for FRM professionals to analyze potential risks in the investment sector.