First of all, we all know that the entry threshold of FRM is actually very low, and there are no restrictions on academic qualifications and majors. Anyone who wants to take the FRM exam can sign up. But you should also have an objective consideration of your own level before applying for the exam.
1, finance. The association does not explicitly require financial foundation, but in order to quickly understand FRM knowledge points, candidates should have a framework understanding of financial knowledge.
2. English. FRM will only provide American English exam questions. According to experience, only when candidates reach CET-4 and master financial English can they learn FRM well.
3. Mathematics. FRM exam mainly involves statistics and probability. If candidates can master the above contents well, it will be of great benefit to learn FRM.
Let's get down to business. Let's see how difficult the FRM level 2 exam is!
FRM level 1 exam difficulty:
The main subjects at FRM level are: risk management foundation, quantitative analysis, financial market and products, valuation and risk model. Among them, three or four subjects are the difficult points in the exam. The financial market and products are the focus of the exam, including various derivatives, interest rate futures, MBS and so on. It is very important to understand concepts and formulas. Every year, we also pay attention to options, bond valuation and market risk in valuation and risk models. The first two parts have more calculations and more quantitative analysis models, so we should understand them more.
Another difficulty of FRM level is calculation. Too much calculation is a headache for candidates. Candidates must pay attention when preparing for the exam.
FRM level 2 exam difficulty:
The second level of FRM is mainly composed of five parts: market risk management and measurement, credit risk management and measurement, operational and comprehensive risk management, investment risk management and financial market frontier topics. Market risk, credit risk and operational risk are the secondary concerns of FRM. There are still some calculation problems in this part of market risk management, so don't take it lightly.
Then credit risk can't escape calculation, and there are many models in PD measurement of default probability. Then there is operational risk, and the measurement method of operational risk is investigated. The Basel Accord is also in this part.
In addition, as an important financial examination in the world, FRM is not a static examination, and it will be optimized with social progress and institutional progress every year. So the difficulty of the exam is increasing every year. This is not the hardest, only more difficult. Bian Xiao suggested that you might consider signing up for a training institution, which will help you learn FRM.