If you have decided to pursue a FRM training program, you must develop the necessary knowledge to prepare for the FRM exam. You need to be able to apply theoretical concepts quickly and perform calculations. Moreover, you must be familiar with derivatives pricing. To prepare for the FRM exam, you should practice many calculations and revise key points. Additionally, it would help if you practiced exam-style questions to evaluate your understanding. Here are some tips to help you prepare for the FRM exam.
If you’re going to take the FRM exam, you need to be efficient with your time. Studying and answering questions as quickly as possible can help you avoid unnecessary stress, but it’s also important to have a well-rested mind before the exam. Last-minute cramming can make you tired and exhausted and likely lead to silly mistakes. To ensure you’re well-rested, get at least seven to nine hours of sleep before the exam.
Questions to expect on the exam:
The FRM certification is a very challenging exam. It consists of two parts. The first part is a quantitative analysis of financial markets and products, while the second is a more qualitative examination of risk models and different types of risk. It is highly recommended to take a prep course for the FRM exam. This will help you to maximize your time and minimize the chances of failure.
The quantitative analysis section covers one of four broad topics on the FRM exam. This section accounts for about 20% of the exam and assesses candidates’ knowledge of various quantitative techniques used in risk management. Thirteen chapters cover the topics. Aside from quantitative analysis, the exam also covers credit risk, quantitative analysis, and probability.
Avoiding repeating mistakes:
One of the most common mistakes candidates make on the FRM exam is delaying the start of their study schedule and overestimating their ability to catch up once they’ve already gotten behind schedule. They think they can cram the last few weeks before the exam, but this only works well sometimes.
The FRM exam consists of an extract from a real-world situation and a set of questions related to that situation. These questions need to be clarified and in order. As a result, there is no way to tell how many you’ve answered, and you must be given a chance to compare your performance to other candidates.