The FRM (Financial Risk Manager Exam) is among the most intimidating tests that you will ever take. Preparation time is typically measured in months, not weeks, with multiple hours per day dedicated to prep. If you're feeling so overwhelmed that you don't know where to begin, Varsity Tutors can help you find an experienced FRM tutor to guide your study sessions.
The FRM is comprised of two exams that must both be passed to earn the certification. Part one consists of 100 multiple-choice questions focusing on the tools used to assess financial risk: quantitative analysis, fundamental risk management concepts, financial markets and products, valuations, and risk models. Part two contains 80 multiple-choice questions emphasizing the practical application of the tools discussed in part one. Topics include market, credit, operational, and integrated risk management; investment management, and current market issues. Each test has a time limit of four hours.
Students who have passed the FRE often credit their success to two things: a strong understanding of the concepts involved and a lot of practice. The FRM is too broad to try to memorize all of the answers, so your preparation should focus on the concepts at the core of the test. Your FRM tutor can help with this by identifying the most important concepts in every section, allowing you to focus your study time. Special attention can be paid to any areas that you are struggling with, giving you a well-rounded knowledge base as you sit for the exam. Any questions asked can also be answered in a timely manner, ensuring that you're confident with one topic before moving to another.
Both FRM exams are also known for deceptively worded questions that could trip you up even with a firm grasp of the concepts involved. The only way to feel more comfortable with them is to practice, so your FRM tutor can provide all of the practice questions you can handle. They may also administer practice exams to give a sense of how long you can devote to each question, helping you formulate a plan so you're not scrambling with five minutes remaining on test day.
Preparing for the FRM can feel all-encompassing, but we can help make the process as convenient as possible. We can refer you to an FRM tutor who knows everything about the test, ensuring that your academic needs are met. We also offer a Live Learning Platform that lets you study on your mobile device whenever and wherever you want. It has a variety of tools that make it just as effective as meeting up in person, including video chat capabilities and a virtual whiteboard. Reach out to us today for more information.