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Things You Need to Know about a Financial Risk Management Examination

You can get a financial risk management designation from the global association of risk professionals. A financial risk management designation is given to financial professionals to equip them with knowledge in risk assessment. A professional who has taken an FRM examination can work in accounting firms, insurance companies, banks and asset management firms.

Once a person passes an FRM examination, they become financial risk managers. As a professional in the financial field, it is therefore important to have the FRM examinations. Lack of enough information about financial risk management designation however limits people to pass in their FRM examinations. There are several facts you should know in order to pass your FRM examination.

It is good to know that two parts are involved in an FRM examination. You will be given some multiple choices whereby you are supposed to use a pencil. The first part of an FRM examination contains one hundred equally weighted questions. The second part of the FRM contains eighty equally weighted questions.

The area of concern in FRM part one is on the fundamental tools and techniques that are used in the management of risks and the theories that underlie it. The FRM part 1 usually takes a maximum of four hours. Quantitative analysis, key concepts on risk management, general knowledge on financial markets and valuation of risk modelling are some of the things focused in FRM part 1. There is the application of tools and techniques covered in FRM part 1 in the FRM part 2. The current market issues and investment management is also looked at depth in FRM 2. Four hours is given for the FRM part 2. FRM 1 and FRM 2 requires a pass mark of 40{bdcc069b23db8cb15678bb29c9e1c945edf790effe3af739082c851aee20c527} and 50{bdcc069b23db8cb15678bb29c9e1c945edf790effe3af739082c851aee20c527}.

A standard table with the cumulative distribution function values will be provided to you. You are thus saved from having to memorize the CDF values. Another thing that is provided during an FRM exam is a list of common abbreviations.

Since there has been low registered pass rates, you have to study hard in order to get a financial risk management designation. You should ensure that you study for at least two hundred and fifty hours for an FRM exam. You can take an FRM exam either in the month of May or November every year. You can have your financial risk management examination in any of the ninety sites that offer it. You can therefore have the chance to choose the site that is near you.

For a single day, you can sit for the two FRM examinations. You can however, get the FRM two grading after you have already passed FRM 1. Hard work pays and that’s why you need to take your FRM course seriously.

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