Tips for Effective FRM Exam Levels Preparation

The Financial Risk Management (FRM) certification is a globally recognized credential that demonstrates expertise in the field of risk management. To earn the FRM designation, candidates must successfully pass two levels of exams. As the FRM exams are renowned for their rigor, proper preparation is essential for success.

In this blog, we will demystify the FRM exam levels and provide valuable tips for effective preparation. We will delve into the exam structure, recommended study materials, exam syllabus, study schedule, and the significance of practicing with sample questions to excel in the FRM certification journey.

How to Pass FRM Exams? 

FRM is the short form of Financial Risk Management, which is a globally recognized certification in the finance sector. Candidates passing the FRM exams will get a certification that will enable them to 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 plan your studying plan accordingly so that you have enough time for both the level exams. 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 for each topic in the course. Make slots for each topic every day 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 for you. 

 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 modules. If you enrol in good coaching for FRM like Zell, they will offer such 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 the objective questions will be from which topics. 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 at 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 utilize 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 organized 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, personalized 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 familiarize you with the exam format, enhances your time management skills, and allows you to assess your knowledge and identify areas that require further attention. Utilize 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.

Conclusion:

Preparing for the FRM exams requires diligent effort and strategic planning. By understanding the exam structure, utilizing recommended study materials, aligning with the exam syllabus, following a well-structured study schedule, and practicing with sample questions, you can enhance your chances of success in the FRM certification journey. Remember to maintain consistency, stay focused, and seek support from study groups or professional networks. With effective preparation, you can confidently approach the FRM exams and demonstrate your expertise in financial risk management.

FAQs

Is FRM tougher than MBA?

MBA is a two-year course while the FRM course duration is 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 specializes 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 CFA. 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.