How Difficult Is The FRM Exam By GARP?

Want to take the leap in the world of financial risk management? You are not alone! FRM is highly sought after but nothing comes without its own challenges. Ever wondered just how tough the FRM exam is?

You have come to the right place. Let’s break this down and see what makes this certification a valuable asset and such a tough nut to crack!

What is the FRM?

What is FRM? Global Association of Risk Professionals (GARP) offers FRM. This certification is considered the gold standard in financial risk management professions. Certification indicates you possess mastery of practical concepts that will enable you to professionally evaluate and manage various types of risk factors available in finance. Whether an investment banker, a risk analyst, or an asset manager, the FRM credential will give you that competitive edge in securing that perfect job.

What is the FRM Exam Format?

The FRM exam format is divided into two parts, each designed to test different aspects of your risk management knowledge:

Part 1:

Format: 100 multiple-choice questions

Duration: 4 hours

Focus: Covers the fundamentals of financial risk management, including tools and concepts used to assess risk.

Part 2:

Format: 80 multiple-choice questions

Duration: 4 hours

Focus: This part emphasises the application of concepts and tools to real-life problems.

FRM Exam Difficulty Level

Generally speaking, it’s not easy to take the FRM exam. FRM is long known to be rather sharp in its approach.

Many consider it one of the toughest exams they have ever faced. The FRM exam is not just a set of memorised concepts. You need to apply risk management concepts to complex real-world problems and solve case studies in exams.

Often the time needed to master this material ranges from six months to one year. This challenging exam tests analytical skills. Thus candidates can pass only when they dig deep into learning rather than mere cramming. With the right strategy for preparation, a candidate can pass the exam easily.

FRM Pass Rate 

The following image showcases the historical pass rates of the FRM exams:

Source 

Here, you can derive the conclusion that candidates pass Part 2 more than Part 1 which means Part 2 is easier than Part 1. 

FRM Exam Syllabus and Topics 

The following table showcases the FRM exam topics and their weightage:

Best Study Tips for the FRM Exams

The following are some of the best study tips for the FRM exams: 

Plan in advance: Start studying right after you enrol. Target at least 200-240 hours of study per part; in that way, you will master the material.

Study Schedule: Have an agenda that guides you on dividing your study material into more manageable bits. With this, you are sure to be able to cover all your material without feeling overwhelmed.

Quality Study Material: Invest in the right materials which include textbooks, online courses, and practice question banks. Official materials at GARP are an excellent starting point.

Practice on Mock Exams: Simulate the test environment by taking a full-length timed mock exam. This will help manage time well and areas of improvement.

Focus on Weak Areas: Periodically analyze your knowledge and focus on topics where you think you need more attention. Use some extra time to strengthen that area.

Join a Study Group: Studying with friends can make even the most difficult topics accessible by helping one understand a concept better and providing the motivation to study. Discussing concepts helps one remember the knowledge better.

Maintain Calm and Confidence: Understand some techniques to manage the fear of exams, such as meditating or deep breathing. Confidence is a prime performer on the day of the examination.

How Does Zell Education Help You to Clear the FRM Examination?

Zell Education offers comprehensive support to students so that they prepare adequately for performing well in the FRM exam. The classes are conducted by experienced tutors and supported with well-structured study material prepared especially for the FRM syllabus. The instructors of Zell have ample experience in giving deep insights into complex topics to their students.

Zell Education provides students with ample opportunity to practice through mock exams and question banks so that they can put their knowledge to a practical test. Zell Education equips aspirants with the tools to achieve their dreams in the FRM journey.

Conclusion

The FRM exam is quite a challenge, but there are some ways of making the journey less stressful. Proper preparation, resources, and support can get you through your ordeal and earn you an FRM certification. FRM opens the gate for exceptional career opportunities in finance and risk management.

Institutes like Zell Education will provide you with proper study tips, tuition, and study material which will boost your chances of success. Hang in there, and remember, hard work always pays off!

FAQs on How Difficult Is The FRM Exam By GARP

Is 4 months enough for FRM Level 2?

Yes, four months are enough if you put in the number of hours that you need to study per week and adhere to a good study plan. 

Is FRM math-heavy?

The FRM exam is mathematical and requires a great deal of quantitative analysis and financial mathematics. To understand and solve these math problems you require a good understanding of basic concepts under your belt. 

How hard is the GARP exam?

The GARP exam is quite tough. It demands a plethora of practical application skills and a deep understanding of risk and financial concepts. 

Is a GARP book enough for FRM?

GARP books are a good source of information. However, you should use additional study materials and practice questions available online to be fully prepared.

Can an average student crack FRM?

Absolutely! Dedication, proper study strategies, and the right resources can make an average student pass the FRM exam. 

Anant Bengani, brings expertise as a Chartered Accountant and a leading figure in finance and accounting education. He’s dedicated to empowering learners with the finest financial knowledge and skills.