Financial Risk Manager [FRM] by GARP

Hi all,
Must say this is an excellent thread. I went through all the posts. Made me kinda nostalgic also as some 3 years back i use to read threads of MBA and CAT. Anyway without digressing, I want to add some more info to this thread and ask some questions.

FYI - There are around 92 core readings of FRM. 72 of them are available on garpdigital library. Some are paid and some are freely available. I guess somebody has already posted the links to free readings. I belive we all can go through atleast them (free ones). Rest 20 are basically Hull and "Probability and Statistics" by Spiegel, Schiller adn Srinivasan chapters. These books are easily availble in market.

I have few queries regarding exam:

- Are there any sectional cutoff (someone wrote that in earlier posts) but I am still skeptical about it. Please confirm. If yes and there are sectional cutoffs, then what are those sections. Are they the 5 sections we have in study guide or more than that as mentioned in AIMS. I guess, the section will be decided on the basis of scores given in each section in marksheet of results. Has anyone seen the marksheet of FRM results? In what all sections do they give marks or percentage?

- Whats the normal perception of passing marks. I know such things are not disclosed officially but just as for CFA the perception is that 70% marks in all sections make sure ur success, is there any cutoff known to us in FRM too?

I will keep writing on this thread !!



Thanks,
PJ

P.S. I am MBA in Finance and CFA Level 1, writing FRM 2007.

Hi

I just placed order(will reach in couple of hours) for Schweser FRM Notes (CFA fame) ,6 sets in all and for the latest (4th edition) of FRM handbook of Jurion for 2200/- at Laxmi Copy Centre.

The address is:
Laxmi Copy centre
Shop 1, VM Mehta Road
Opp. Rasraj Hotel, Near Mithibai College,
Vile Parle (West)
Mumbai - 56
Ph - 022 2613 4350/5051. Mob 9820541867

DooDeeDoo

Helloo dere,

i am a late joinee in dis grp..wud like to know abt Jorion book its 4th edition is available in Laxmi xerox..n also abt the question banks..to practice for???

Hey guys plzz help me which one to refer for practice exams...
I have still not completed my sylabii....but beleive as n when a topic completed we shud try for itss diff Q's to test frm q bank n all tht stuff.....

Nee idea abt the grading for the exam???

I'll apreciate further suggestions

Thanks
Naivya.
Hi guys!

I have been seeing the threads for more than a month and exceedingly grateful to read the posts of Tumtum, snowflake and others. I am also taking the FRM exam this november. though my initial strategy was to read the core readings followed by jorion and finally schweser notes, I could not sustain that and now it is mostly schweser all the way. I have completed market risk mgmt and quants. some of my thoughts are like this
- jorion book is not very reader friendly either in terms of the sequencing of topics, language being very cryptic,etc. where as schweser is clear and concise mostly but not very helpful on certain topics in derivatives. I would like to know the feedback on that
- Iam finding it extremely difficult to memorise formulae especially in quants, derivatives, fixed income math etc. if anybody has a better way of doing i will be grateful to know. also the notations used in various places vary slightly thereby making it all the more difficult to remember


May be it is right time for us to discuss specific isssues/ problems in each topic and share each others experience. Further, if any body wants pdf versions of most of the relevant books, they can let me know as I have them on my pc.

Cheers

rlkrao
Hi guys!
I have been seeing the threads for more than a month and exceedingly grateful to read the posts of Tumtum, snowflake and others. I am also taking the FRM exam this november. though my initial strategy was to read the core readings followed by jorion and finally schweser notes, I could not sustain that and now it is mostly schweser all the way. I have completed market risk mgmt and quants. some of my thoughts are like this
- jorion book is not very reader friendly either in terms of the sequencing of topics, language being very cryptic,etc. where as schweser is clear and concise mostly but not very helpful on certain topics in derivatives. I would like to know the feedback on that
- Iam finding it extremely difficult to memorise formulae especially in quants, derivatives, fixed income math etc. if anybody has a better way of doing i will be grateful to know. also the notations used in various places vary slightly thereby making it all the more difficult to remember
May be it is right time for us to discuss specific isssues/ problems in each topic and share each others experience. Further, if any body wants pdf versions of most of the relevant books, they can let me know as I have them on my pc.
Cheers
rlkrao

Hi Rao !

This is precisely what I have stated in my previous posts. One good way of memorizing formulae is to write them down repeatedly. Dont worry much about notations because in the end, if you memorize the formula conceptually, then notations won't matter.

Regarding pdf versions of latest books, I would request you to post them as attachments on this forum for the benefit of all members. We would be indeed grateful to you if you do this.

Thanks and regards,

Tumtum.
Hi guys!
I have been seeing the threads for more than a month and exceedingly grateful to read the posts of Tumtum, snowflake and others. I am also taking the FRM exam this november. though my initial strategy was to read the core readings followed by jorion and finally schweser notes, I could not sustain that and now it is mostly schweser all the way. I have completed market risk mgmt and quants. some of my thoughts are like this
- jorion book is not very reader friendly either in terms of the sequencing of topics, language being very cryptic,etc. where as schweser is clear and concise mostly but not very helpful on certain topics in derivatives. I would like to know the feedback on that
- Iam finding it extremely difficult to memorise formulae especially in quants, derivatives, fixed income math etc. if anybody has a better way of doing i will be grateful to know. also the notations used in various places vary slightly thereby making it all the more difficult to remember
May be it is right time for us to discuss specific isssues/ problems in each topic and share each others experience. Further, if any body wants pdf versions of most of the relevant books, they can let me know as I have them on my pc.
Cheers
rlkrao



Hi Rao,

i really appreciate ur words...dis is the high time we all shud share our thougts for the prep n diff queries related for the same.

Heyy guyss i m basically dng the things frm jorion bk..as i didn't found Schwesser sounded on wht is actually required..we wont be able to catch the concepts deeply frm dis..but all dis actually depends upon one's background...
I m yet to start my Investment n Quanta section..
Still putting my eyeee again n again on the derivatives part...frm HULL.itss actually not easyyy..n takes alot of time...
bond section frm MKT sec iss vv assum..n vv interesting tooo..
As far as Regulatory sectioin is concerned i didn't complete it till yet...w'll try to finish in couple of the days...

but guyss i m actually worried for the grading n the type of Q's we have on exam..plzz sum one can help n guide me on tth part...I'll be highlyy thankful...
I m just trying to complete the things on time....n again Revision is tooo important den anyhting else...
w'll just stick to wht i learnt ..in all dis ....once i complete...wht all is required...

i 'll really appreciate Rao if u share the material with all us here...


Waiting for further suggestions.

thanks..
Naivya.

Learning Objectives mapping:

Quantitative Methods
1.1 to 1.9 Schaum's Chp 1
2.1 to 2.9 Schaum's Chp 3, 4, 5
3.1 to 3.7 Schaum's Chp 6
4.1 to 4.7 Schaum's Chp 7
5.1 to 5.6 Schaum's Chp 8
6.1 to 6.6 Schaum's Chp 9
Value at Risk
7.1 to 7.15 Linda Allen Chp 1 (7.1 to 7.6), Chp 3 (7.7 to 7.15)
8.1 to 8.7 Rene Stulz Chp 4 Firm wide approach to risk mgmt
9.1 to 9.11 Jorion Chp 7 portfolio risk
10.1 to 10.7 Jorion Chp 9 forecasting risk and correlation
11.1 to 11.10 Linda Allen Chp 2
12.1 to 12.6 Jorion Chp 10 Var Methods
13.1 to 13.9 Jorion Chp 11 Var Mapping
14.1 to 14.7 Jorion Chp 12 simulation methods
15.1 to 15.5 Jorion Chp 14 stress testing
16.1 to 16.3 Kalvyas Chp 4
17.1 to 17.13 Jorion Chp 17 budgeting in I/M

I would suggest everyone to go through the Learning objectives to be sure of what exactly one has to prepare in order not to miss out any topic and also not to waste time doing extra stuff which is not required for the exam.

Regards

Learning objectives mapping :
Market Risk Management:
18.1 to 18.4 Market Risk (Anthony Saunders Chp 10)
19.1 to 19.6 Foreign exchange risk ( A. Saunders)
19.7 to 19.15 Cash flow exposures ( Rene Stulz) Chp 8
20.1 to 20.6 Liquidity risk ( Christopher Culp )
Fixed Income Securities: ( Bruce Tuckman)
21.1 to 21.6 B.T Chp 1, 2, 3
22.1 to 22.7 B.T Chp 4
23.1 to 23.12 B.T Chp 5 , 6
24.1 to 24.7 B.T Chp 7
25.1 to 25.4 B.T Chp 9
26.1 to 26.6 B.T Chp 21
Derivatives:
27.1 to 27.9 John C Hull Chp 2, 3
28.1 to 28.6 John C Hull Chp 4
29.1 to 29.5 John C Hull Chp 5
31.1 to 31.8 John C Hull Chp 6
33.1 to 33.7 John C Hull Chp 8
34.1 to 34.7 John C Hull Chp 10, 12
35.1 to 35.7 John C Hull Chp 15
36.1 to 36.3 John C Hull Chp 9
37.1 to 37.12 John C Hull Chp 14
38.1 to 38.19 John C Hull Chp 19
Regs

hi everyone,

Learnt abt this thread while searching for FRM...I cleared CFA level 2 this june and was thinking if I should take FRM....

tumtum, rajatb, snowy and others please guide on how easy or difficult it is to clear FRM with such less time.....Also I have scheduled my GMAT on oct 1st ...so can i manage both of them?...

Hey rajat....I read ur post abt making switch to finance career from non - finance....that was reallly inspiring on how u broke into the industry....I am in similar situation today...I am wrking with a consulting firm(non finance) and want to break into finance industry...but having said that I am sure that the big I-banks with offices in india are mostly back offices!!...( since i am already in a non finance back office)....I want to make sure that I dont land up again in the finance version of backend....

Please let me know ur opinion ....any help will be highly appreciated

My background: 2 yrs in consulting,,Btech ELec IIT Madras, cleared CFA level 1 in dec 06 and level 2 in june 07....No contacts in the industry....

hi everyone,

Learnt abt this thread while searching for FRM...I cleared CFA level 2 this june and was thinking if I should take FRM....

tumtum, rajatb, snowy and others please guide on how easy or difficult it is to clear FRM with such less time.....Also I have scheduled my GMAT on oct 1st ...so can i manage both of them?...

Hey rajat....I read ur post abt making switch to finance career from non - finance....that was reallly inspiring on how u broke into the industry....I am in similar situation today...I am wrking with a consulting firm(non finance) and want to break into finance industry...but having said that I am sure that the big I-banks with offices in india are mostly back offices!!...( since i am already in a non finance back office)....I want to make sure that I dont land up again in the finance version of backend....

Please let me know ur opinion ....any help will be highly appreciated

My background: 2 yrs in consulting,,Btech ELec IIT Madras, cleared CFA level 1 in dec 06 and level 2 in june 07....No contacts in the industry....

Learning objectives mapping :
Capital Allocation
65.1 to 65.6 Dan Galai Chp 15
66.1 to 66.5 strategic capital alloaction, 6 methods of allocatinf EC, SW of RAROC and EVA for model

67.1 to 67.7 Banking Regulation
68.1 to 68.20 BASEL Readings (GARP)
69.1 to 69.8 GARP Reading(Risk Measurement, Risk Mgmt & Capital Adequacy

Here is the last module. Alas!
Happy studying guys... I know the course is humungous!!

Regards

Candidate for FRM 2007 exam!

Thanks for all the comments related to the exam. I have just started my preparation with Fixed Income readings.

Good luck with your preperation!

Hi everyone

Hope everyone is dng fine with their preparation .. For people who have started recently and do not belong to fin background, i think that the exam is preety much doable. Even i dnt belong to fin background but i am finding it interesting enough to keep up my spirits.. No doubt the syllabus is humongous but still doable -- just gotta work hard i guess...
One concern from my side is that - i was trying to register for the exam and wanted to have bangalore as the center - but the list shows only chennai, mumbai and delhi -- so wanted to know that are these the only options or am i missing something???? Guys plz reply early as u know that the daedline is prety close by.......

Thanks

Hi everyone

Hope everyone is dng fine with their preparation .. For people who have started recently and do not belong to fin background, i think that the exam is preety much doable. Even i dnt belong to fin background but i am finding it interesting enough to keep up my spirits.. No doubt the syllabus is humongous but still doable -- just gotta work hard i guess...
One concern from my side is that - i was trying to register for the exam and wanted to have bangalore as the center - but the list shows only chennai, mumbai and delhi -- so wanted to know that are these the only options or am i missing something???? Guys plz reply early as u know that the daedline is prety close by.......

Thanks


Even I had this question. I am from Madras .I was about to book my tickets for Bangalore after registering for this exam.The drop down menu (while registering) did not show Bangalore but listed Madras. The list of test sites on their website lists Bangalore but not Madras.
Madras as my test centre is incredibly convenient though.

regards
Ram
hi everyone,

Learnt abt this thread while searching for FRM...I cleared CFA level 2 this june and was thinking if I should take FRM....

tumtum, rajatb, snowy and others please guide on how easy or difficult it is to clear FRM with such less time.....Also I have scheduled my GMAT on oct 1st ...so can i manage both of them?...

Hey rajat....I read ur post abt making switch to finance career from non - finance....that was reallly inspiring on how u broke into the industry....I am in similar situation today...I am wrking with a consulting firm(non finance) and want to break into finance industry...but having said that I am sure that the big I-banks with offices in india are mostly back offices!!...( since i am already in a non finance back office)....I want to make sure that I dont land up again in the finance version of backend....

Please let me know ur opinion ....any help will be highly appreciated

My background: 2 yrs in consulting,,Btech ELec IIT Madras, cleared CFA level 1 in dec 06 and level 2 in june 07....No contacts in the industry....


Since you have done L2 and given your background it will not be difficult for you to prepare for FRM even if you start now.
Your perception that most of the I banks are back offices is not correct while a majority of the workforce does back office ,the Knowledge outsourcing arms of Lehman,DB ,JP Morgan and BoA are doing some exceptional work .I know of a team in BoA Mumbai which is composed mainly of Phds and IIT B.tech which designs neural network algo's to trade on the NYSE .A batch mate from IIT Kgp joined DB in their Exotic Equity Derivatives and did so well that now they have transferred him to London to be a Derivatives trader all at the age of 23!
You have to be careful about the profile and the team you join ,initially they offer the same starting packages to all the teams but later on the there is a big difference in bonus time .Last year for the teams in DBs Global Markets Center the minimum bonus was around 60% with the median bonus around 80% .Many of my batch mates received bonuses of 100%.
You should start of by activating your IITM contacts in Lehman/DB ,I am sure even now with the L2 you can mave a good move.

hi rajat,

Thanks for replying..that was really useful...I will definitly do the stuff u mentioned...having said that I would need to interact more with u in order to identify what the profile really is and break into the finance industry..,..please pm me ur phone number or email Id ..

thanks once again

Even I had this question. I am from Madras .I was about to book my tickets for Bangalore after registering for this exam.The drop down menu (while registering) did not show Bangalore but listed Madras. The list of test sites on their website lists Bangalore but not Madras.
Madras as my test centre is incredibly convenient though.

regards
Ram



Just a quick update. I have learnt that Madras (Chennai) has been added as a test centre.
All the best to everyone.

regards
ram

Friends,

Just to supplement the mapping effort of Snowflake, attached is the xls file containing all the mappings.

keep striving!

rlkrao

Hi Guys,

Following this thread for so long but never replied in this forum. It was a great help in my preparation so far. I am a Business Analyst in a Investment Banking software firm. And appearing for the FRM this year.

Thanks to Snowflake and TumTum for all the Knowledge Sharing so far.

Regards
Raja

Although this thread is for FRM.....but still see some CAT/MBA questions 😃 seems like every PG threads are biased towards CAT or other MBA exams.....

well all I can suggest you at this point in time is that......if you are really serious to get into some MBA college in the coming academic session then you can give up your job. But once you have given up your job....be ready to face an extra pressure of performing well..........

And also, I would suggest that you might have to compromise with the colleges........you might have to increase the number of applications.

thats it!

Hi guys, just seen this FRM thread, really rocks. I have got a situation, Guys need help.

My name is Jeenit having an Engineering background(BE IT)(poor acads as i was keen not gettin into it), Graduated in 06 and working at a KPO since 5 months in Mumbai where i am exposed to basic finance . Also i have done some derivative trading and keen interest in Stock Markets..thats it in finance.
I have been preparing for cat since last year(didnt end up gettin a top 10 B-school last yr) and very much done with the prep for CAT 07 which is on 18th NOv a day after the FRM exam. The job i am doing is now gettin a little and at the same time i am done with wat i had to learn.(its now almost a waste of time around 10 hrs a day) Now my obvious focus is CAT 07 and i have a good chance of gettin calls for the interviews at the IIMs. But the issue is that i dont have a strong profile, forget profile the biggest problem is they cannot ascertian whether i will be able to handle the rigourous IIMs as my engg acads are very poor. So this exam i believe will will definitely be a boost and having deep interest for finance will make it interesting for me.Also ill have better job prospects for next 6 months and at the placements at B-School.(i want to make a career in Inv. banking in INDIA )
So should i leave the job rite now and start preparing for FRM??? IS it possible??
also i have to devote 10 hrs weekly for CAT too. I am sure to do an MBA this yr and also ill be gettin good backin for FRM from my CAT teacher who is also givin FRM this yr.
Please reply fast as i need to take a decision b4 30th Aug
Hi guys, just seen this FRM thread, really rocks. I have got a situation, Guys need help.

My name is Jeenit having an Engineering background(BE IT)(poor acads as i was keen not gettin into it), Graduated in 06 and working at a KPO since 5 months in Mumbai where i am exposed to basic finance . Also i have done some derivative trading and keen interest in Stock Markets..thats it in finance.
I have been preparing for cat since last year(didnt end up gettin a top 10 B-school last yr) and very much done with the prep for CAT 07 which is on 18th NOv a day after the FRM exam. The job i am doing is now gettin a little and at the same time i am done with wat i had to learn.(its now almost a waste of time around 10 hrs a day) Now my obvious focus is CAT 07 and i have a good chance of gettin calls for the interviews at the IIMs. But the issue is that i dont have a strong profile, forget profile the biggest problem is they cannot ascertian whether i will be able to handle the rigourous IIMs as my engg acads are very poor. So this exam i believe will will definitely be a boost and having deep interest for finance will make it interesting for me.Also ill have better job prospects for next 6 months and at the placements at B-School.(i want to make a career in Inv. banking in INDIA )
So should i leave the job rite now and start preparing for FRM??? IS it possible??
also i have to devote 10 hrs weekly for CAT too. I am sure to do an MBA this yr and also ill be gettin good backin for FRM from my CAT teacher who is also givin FRM this yr.
Please reply fast as i need to take a decision b4 30th Aug



Hey Jeenit,

There are several things you could do. Here are some suggestions.
Try for all CAT, MAT, ATMA, XAT. CAT and XAT provide you the chance of getting into the top B-schools in India.But MAT and ATMA will provide you a many options, just to play safe. MAT and ATMA are relatively much easier to crack. There are people who don't even prepare and yet cross 90 percentile in these exams. That said one does need to put in effort. There are colleges like Alliance business academy and ITM mumbai which accept candidates with a high score on these exams and are ranked pretty high is most surveys. Keep your options open!
If you do multiple things, the likelihood of one excelling is less but getting a decent score/passing is quite possible.
As far is FRM is concerned, first thing to note is NO CAT/XAT preparation can match up to it. I can say this as I have an exposure on both grounds. CAT and other entrance exams test your aptitude not knowledge. Here you need to slog really to understand the concepts. You having been a derivatives trader would definitely find many topics easier as compared to those who don't. Still there is alot to read. And as the days approach the FRM exam one does have to put in more hours. 10 hours for CAT + min 4-5 hours for FRM + >=8-10 hours of work....when do you sleep, eat etc?? unless you try to overlap work and studying...which is quite tough.

Well this is a third person view of ur position. you can weigh things better and try and figure out whats best for you.
For suggestions and encouragement all FRM buddies are anyway there!!

Cheers and best wishes

Snowflake