Tips for Effective FRM Exam Levels Preparation

FRM certification is a globally accepted certification, which proves a certain level of expertise in risk management. To gain the FRM designation, the candidates need to pass two levels of exams. Given the rigour of the FRM exams, proper preparation is the key to passing these exams.

In this blog post, we will explain the levels of the FRM examination and provide tips on preparing with effectiveness. We shall engage in the structure of the exams, recommended study materials, what to study, the exam syllabus, the study schedule, and reasons why practicing sample questions is essential for passing the FRM journey.

How to Pass FRM Exams? 

FRM is the short form of Financial Risk Management, which is a globally recognised certification in the finance sector. Candidates passing the FRM exams will get a certification that will enable them to pursue a career in the field of risk management and analysis. 

The FRM course has two levels for which candidates will have to appear in two different exams. Both the level exams are conducted for 4 hours. Candidates will have to answer 100 objective questions in the Level 1 exam, while there will be 80 objective questions in the Level 2 exam. 

Understanding the exam structure is crucial for its preparation. Here are some essential tips that you can follow to prepare for the FRM exam better.

Plan Ahead and Space Out your Studies

The Financial Risk Management course duration is 12 to 18 months. Level 1 exam has four topics, and level 2 has six topics. You should create your studying plan accordingly so that you have enough time for both the level exams. Give yourself enough time to prepare because when you have proper time in hand for preparation, you will be able to complete the course properly and prepare for the exam better. 

Use a Study Plan for your FRM Exam Preparation

You should schedule a study routine so that you can ensure proper time allocation for each topic in the course. Make slots for revising every week so that you can touch every topic regularly. When you have completed the syllabus, also include a slot for practicing test papers along with revisions. 

Prioritize Your Studies According to Topic Weights

While completing the syllabus is crucial, it is also essential to understand which topic requires more attention. You should focus more on subjects that carry more weight and also on topics that you think are difficult to understand or memorise. 

 Use Third Party FRM Exam Prep Providers for More Practice

While the FRM board will offer appropriate modules for studying, it is always a great idea to get some extra help from third-party FRM exam module providers. If you enrol in good coaching for FRM, like with Zell Education, they will provide you with manuals and modules to offer extra study support. Also, you should practice as many mock test papers as possible from different sources. 

Don’t Skip Topics

The passing score for the FRM exam is 50%-60%, but aiming for 65% or more will offer you a good position. To get a good score, one of the most important ideas is to complete the whole syllabus. You never know which topics the objective questions will be based on. So, if you do not wish to regret it in the exam hall, you should not skip any topic from any level at all. 

Focus on Practice Questions a Few Weeks Before Exam Day

While you can start checking out mock test papers from the start of your preparation, you should practice the mock test papers rigorously a few weeks before the exam day. Practicing more test papers will help you in time management and also boost your confidence. When you appear in the real exam, you may find most of the questions familiar, and you can answer with great confidence. 

Take Some Time off Before the Exam

Exhausting your mind can cause blackouts and similar issues in the exam hall. So, make sure to take some time off just before the exam to relax your mind and appear fresh for the exam. 

 Watch your Exam Timing

While you are busy preparing for your exam, it is also essential that you watch your exam timing. Prepare yourself mentally according to the time to get better results. 

Exam Structure:

The FRM certification comprises two levels: FRM Part I and FRM Part II. Each level has a specific exam structure. FRM Part I consists of 100 multiple-choice questions, and candidates have four hours to complete the exam. FRM Part II comprises 80 multiple-choice questions, and candidates are given four hours to complete the exam. Understanding the exam structure is crucial for planning your study strategy and allocating time for each section effectively.

Tips for Effective FRM Exam Levels Preparation

Recommended Study Materials:

To prepare for the FRM exams, it is important to utilise comprehensive and reliable study materials. Gaining access to official FRM study guides, practice exams, and reference books is highly recommended. Additionally, reputable third-party study materials, such as review courses and online resources, can provide valuable insights and aid in understanding complex topics. Ensure that you select study materials that align with the exam syllabus and cover all the necessary topics in depth.

Exam Syllabus:

Familiarizing yourself with the FRM program syllabus is essential for targeted and effective preparation. The syllabus outlines the key topics and knowledge areas that will be tested at each level. It is advisable to create a study plan that aligns with the exam syllabus, giving appropriate emphasis to each topic. Breaking down the syllabus into manageable study segments can help you stay organised and ensure comprehensive coverage of all the required concepts.

Study Schedule:

Creating a well-structured study schedule is crucial for consistent and disciplined preparation. Allocate dedicated study time each day or week, depending on your availability and personal preferences. Set realistic goals and milestones to track your progress. A study schedule not only helps you manage your time effectively but also ensures that you cover all the necessary topics before the exam. Remember to include time for review and practice exams in your study plan.

By partnering with Zell Education, you gain access to expert guidance, personalised consultations, and a comprehensive study plan tailored to your needs.

Practice Questions:

Practicing with sample questions and mock exams is a vital component of FRM exam preparation. It helps familiarise you with the exam format, enhances your time management skills, and allows you to assess your knowledge and identify areas that require further attention. Utilise practice question banks, online forums, and official FRM practice exams to gain exposure to a variety of question types and assess your readiness for the actual exam.

You can read our blog post about “What Is the Scope of An FRM Certification” on which we have highlighted the full benefits of FRM Certification.

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Conclusion:

Preparation for FRM exams calls for rigorous studying and planned strategies. This, along with knowing how the exams are structured and recommended materials for studies aligned to the syllabus for the exams, a proper schedule in planning the study approach, and practice on sample questions, among other requirements, will make a positive impact for succeeding in the FRM certification journey.

Maintaining consistency and focus besides the involvement in study groups or professional networks during FRM exam preparation. Provided one prepares oneself well, a person could take the FRM tests with confidence and prove financial risk management expertise.

FAQs

Is FRM tougher than MBA?

An MBA is for two years, while an FRM will take 12 to 18 months. However, FRM is considered more difficult because of its tougher syllabus and exhausting exam structure.

Who earns more, CFA or FRM?

While FRM specialises in the risk sector, CFA offers a wider prospect to the candidates. So, CFA earns much more than FRM.

What is the highest package of FRM?

According to different sources like Ambition Box, the highest salary package of FRM-certified candidates is 21 lacs per annum to 24 lacs per annum.

Is FRM Level 1 difficult?

Both the levels of FRM are difficult in comparison to other exams like CMA. But the FRM Level 1 exam is less difficult than the FRM Level 2 exam.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.