Is it useful to only take the FRM Level 1 exam?

To tell you simply, it is useful to have only passed the FRM level one.

FRM is a rigorous and highly recognized qualification in the field of financial risk management. Even if you have only passed Level 1, it can still play a corresponding role.

FRM Part 1 exam focuses on basic theoretical knowledge of financial markets, financial instruments and methods of measuring risk.

Main examination content of Financial Risk Manager Level 1 FRM

FRM is a rigorous and highly recognized qualification certification in the field of financial risk management. Even if you have only passed Level 1, it can still play a corresponding role.

(1) Fundamentals of risk management, role of risk management, basic risk types, measurement and management tools, value creation of risk management, modern asset portfolio theory, standard and non-standard capital asset pricing models, and indices Models, risk-adjusted performance measurement, enterprise risk management, financial disasters and risk management failures, case studies, ethics and ethics as codes for strategies

(2) Quantitative analysis, discrete and continuous probability distributions, population and sample statistics, statistical inference and hypothesis testing, parameter estimation of split treatments, graphical representation of statistical relationships, unit and multiple linear regression, Monte Carlo methods, correlation type estimation and volatility using EWMA and GARCH models, volatility term structure

(3) Financial markets and products, OTC market mechanisms, forward futures swaps and options, interest rate levels and interest rate sensitivity measures, fixed income securities derivatives, interest rates, foreign exchange, stocks, commodities Derivatives, foreign exchange risk, corporate bonds, credit rating agencies

(4) Valuation and risk models, risk levels, option valuation, fixed income securities valuation, country and sovereign risk models and management , external and internal credit ratings, expected and unexpected losses, operational risks, stress testing and scenario analysis

100 difficult multiple-choice questions, which must be completed within 4 hours, not counting the average time to fill in the answer sheet Each question is only 2 minutes and 40 seconds.

Being able to pass such a difficult exam is enough to prove that you have a solid understanding of financial instruments, derivatives, risk management, etc. These are things that can be transformed into actual work capabilities, and are naturally not useless.

Is it useful to take only Level 1 of FRM? For different groups of people, passing Level 1 of FRM has different uses.

Ungraduated college students:

Since the summer of their junior year, most students have been busy preparing for the fall recruitment for the next semester. But if you suddenly find that you don’t like the professional counterpart job, and you want to enter the high-paying financial industry, but it’s too late to accumulate experience, then the role of FRM level one will be highlighted.

The preparation time for Part 1 given on the official website is about 200-300 hours. In other words, students can prepare for the May exam in their junior year and participate in the autumn recruitment; or they can start reviewing for the November exam during the summer of their junior year. Results will be released in January to prepare for spring recruitment. FRM has the advantage that current students can sign up, making it a useful tool for finding a job before graduation.

Those who are already working but want to change careers:

For example, Cai from JINCHNG FRM’s class used to work in a financial information company, and later handled a financial risk case. Want to change careers. She was busy with work at the time and only had time to take the next level exam.

However, by virtue of passing the first level, she successfully received an interview and successfully obtained an offer from the risk control center of an Internet financial company. There are only a few thousand FRM certificate holders in China, and things are rare and expensive. Passing the first-level exam is also a shining point that can make HR's eyes shine.

Bank insiders:

It is undeniable that most of the FRM certificate holders have gone to banks. Needless to say, banks’ recognition of FRM. The Industrial and Commercial Bank of China has long become a major global employer of FRM certificate holders. Agricultural Bank of China, China Construction Bank, and HSBC are following closely behind. Passing the FRM exam can become what they need. Talent shortage.

Furthermore, banks have direct rewards for high-value financial certificates, thereby encouraging employees to take the exams.

For example, if FRM passes Level 1 or Level 2, you can directly exchange for high bonuses.

In addition, when there are vacancies for back-end risk control positions in banks, internal recruitment will be conducted. If you are the only candidate who has passed the FRM Level 1 exam and no one else has a certificate, you will have a huge advantage. For those who want to transfer internally within the bank, taking the FRM exam will be a very cost-effective option.

FRM, as the “gold certificate” in the financial risk control industry, can be of various help to different groups of people just by passing the first level exam.

Although FRM Level 1 is of great use, there are still many complete FRM certificates. Candidates should work hard to pass the FRM exam and get the FRM certificate as soon as possible before they can use the title of FRM Financial Risk Manager.