How to prepare for FRM
                     How to 
Prepare for 
FRM
An international professional 
certification offered by the Global 
Association of Risk Professionals 
(GARP) designation is the Financial 
Risk Manager (FRM). The candidate 
needs to complete two levels of 
practice-oriented exams which cover 
mostly topics in finance & risk 
management and demonstrate 2 
years' professional work experience 
in the same field in order to reach 
the FRM designation.
FRM Part I
Examination Pattern
FRM Part I is a four-hour long exam (starting 8 AM in the 
morning) held on the 3rd Saturday of May and 
November every year. The paper consists of 100 MCQs 
focusing on tools used to evaluate financial risk: 
fundamental risk management concepts, quantitative 
analysis, financial markets and products, and risk 
models and valuation.
Preparation 
Material
'Schweser Notes for FRM Exam' 
provides suffi cient material to clear 
the FRM exam in a compact way. 
But, the level of sample questions in 
Schweser is a little below that of the 
actual FRM examination. So, after 
going through the book, one must 
solve sample practice papers for 
FRM available on the GARP website. 
Most of the other sample papers are 
also available online for FRM exam 
preparation on websites like 
EduPristine and Bionic turtle.
Passing Marks
There are no fixed passing marks for the FRM 
exam. Passing scores are decided by the FRM 
committee and are generally based on relative 
performance.
Even though FRM does not announce the marks of 
the candidate, it declares a quartile for each of 
the four topics. It is generally recommended to be 
in the top two quartiles (i.e. above 50 %tile) in 
each subject. Else, scoring the 3rd quartile (i.e. 
25-50 %tile) in one subject should be 
compensated by a 1st quartile (i.e. 75 %tile 
above) in another. One must jot that this is not 
the real criteria, but a prediction based on 
historical results.
Topic-wise GuideFRM Level I contains four 
topics with the following weightage:
Fundamental Risk Management 
Concepts (20% weightage)
The topic verifies the 
candidate's understanding of 
the basic concepts of risk 
management, recent financial 
disasters and the US credit 
crisis (2007-08), standard 
models in finance (like CAPM, 
Arbitrage pricing, etc.), and 
GARP's Code of conduct.
Quantitative Analysis Valuation & Risk Models 
(20% weightage) (30% weightage)
This topic is totally mathematical 
covering the concepts of This topic 
regression, probability, and time introduces the 
series analysis. It should be easy aspirant to the 
to cover if you have done such use of various 
courses throughout college. risk models and 
Financial Markets & Products (30% 
valuation 
weightage)This topic deals with the 
mechanics of derivative products techniques used 
(options, futures, swaps, etc.) and for pricing 
markets. This book requires good options.
understanding & should take the 
majority of your preparation time. 
BENEFITS OF JOINING FINOMINAL 
EDUCATION
The FRM - Financial Risk Management, controlled by the 
Finominal Education Institute, offers an alumni-level 
educational plan and assessment program intended to 
extend your functioning information and down-to-earth 
abilities connected with investment decision-making This 
FRM Level 1 Training course (160+ hours of Live classes) 
provides you with an excellent opportunity to equip 
exceptionally well for the FRM  exam and pass the exam in 
your fi rst attempt. To know more call or WhatsApp us at 
9650353883.