frm 1 and 2

Hi guys, Am a bit new to the frm world. Can I check if its realistic to take both level and level 2 frm in November 2019 if I start preparing now? I am expecting a change of country/location coming up in the next couple of months. Not sure if I am being ambitious by trying to attempt both level 1 and 2. I don’t know what the timelines to start studying are roughly. Any guidance would be very useful for me. Thanks!

Hi akrushn2,

The advantage for a CFA Level 3 candidate such as yourself is that you will find some overlap in the material. However consider exam day, you will need to travel to the exam centre and sign in by 7.30 am, return by 1.30 to finish at 6pm. That is a long day with fatigue likely to set in for the last few hours. Note after all that effort, should you be unsuccessful in Part 1 it is GARP policy to discard your Part 2 exam effort. If you have the intellect of a Ramanujan then no doubt you will be successful but for the rest of us mere mortals the prudent route requires a more measured approach.

I believe to be successful it is necessary to gain a deep understanding of the material, this will take time as the length and content of the readings is vast and detailed. I would estimate at least 400+ hours of study is required and just like the CFA Levels 2 and 3, one could easily spend considerably more time on the material. The Part 1 exam is highly quantitative with questions that are likely to be missing information and require the use of a second formula, rarely will you find an exam question that is a simple plug and chug. Memorization of the formulae will not suffice to answer most questions in this exam. The Part 2 exam has a different style with approximately 20%-25% calculate questions with 75%-80% qualitative questions. The qualitative questions tend to combine a number of readings and can be tricky even with a good grasp of the material.

To get the most out of the course I would encourage you to take Part 1 in May and Part 2 in November. Taking both exams can be done successfully, however the likely hood of success using this strategy is probably less than 10%, a high risk strategy to attain a risk certificate which I find amusing.

More importantly if you have an interest in risk management you should find the course most informative and enjoyable.

Good Luck to you

Thank you for your detailed response!!

You’re welcome!

Why taking both at once is a risky strategy?

You have 3 possible outcomes:

  1. Pass both

  2. Pass only P1

  3. Fail both

If you take separately you still can fail and even if you pass P1 you still have one level to do left.

If you take an exam in another country you might spare on accommodation and travel expense.

And taking both at once is more exciting. Trust me.

Hi Flashback.

Given the fact that you have recently taken both exams on the same day your experience would be much more relevant then mine. I am happy to trust you that taking both at once is more exciting. Excitement and risk tend to have a high correlation, probably one of the reasons people flock to Las Vegas. However if taking an FRM exam floats your boat then taking separate exams over two days would potentially provide you with double the enjoyment.

Flashback as a CFA charterholder and having studied for the FRM you should be well equipped with the knowledge to answer your own question "Why taking both at once is a risky strategy? " without any help from me.

As to costs, GARP fees are the same if you pass on the first attempt however two of your three options will result in higher fees to our GARP friends.

I commend you for having a go to successfully complete the exams on a single day and hope that you achieve your objective, but I believe it is a risky strategy for most candidates.

Good Luck next week please let us know how you get on.

Exactly it will not in my case if we are talking about all related costs. I have to travel at least 600 km to take this exam.

Flashback I want to acknowledge your wonderful achievement of passing Parts 1&2 on a single day. I am delighted for you, well done. One and Done excellent.

Passed L1 with aroudn 80 hrs prep. How much time needed to crack L2 FRM exam. I have passed CFA L3

@ Arbutus

Thank you. It was high adrenaline experience and I liked it.

@ Vicky

FRM Part 2 is, imo, quite different story than any CFAI exam. While, P1 was very closely related to CFA curriculum and I walked through it reading it like a poetry, I was studying very hard for FRM P2. I allocated 70 % effort to prepare P2 and only 30 % of total effort to P1 and I nailed P1 while in P2 did good only in risk areas in which I was familiar with like Operating and Investments risk. Market and Credit risk were really pain in the ass to study. I was marked only Fair in Market risk area and marked Good in Credit risk. I was marked as Excellent in all other areas with exception of Quants (P1) and Current issues (P2) where I was marked as Good.

Wow! I really take my situation for granted. Literally traveled 6 blocks from my apartment to the test center.