2012 Financial Risk Manager (FRM®) Exam Preparation Handbook© 2012 Global Association of Risk Professionals. All rights reserved.
Suggested Study Strategies for theFRM Examination
The purpose of this handbook is to assistFinancial Risk Manager (FRM®) candidatesin their preparation for the FRM Examina-tion by suggesting strategies for completingthe reading material outlined in the FRMStudy Guide and FRM AIM Statementsdocuments, which together form the blue-print for exam topic coverage.
About the FRM Examination
The FRM Examination is a practice-orientedexam offered by GARP (the Global Associa-tion of Risk Professionals) and designed toassess a candidate’s knowledge and under-stand-ing of the skills necessary to functioneffectively as a financial risk manager.GARP is governed by a Board of Trusteescomprised of top risk professionals andacademics from around the world. As aprofessional association with global mem-bership and an extensive professional andacademic chapter network, GARP is in aunique position to ascertain standards andassess evolving trends in risk managementpractices. To calibrate and benchmark itsunderstanding of the demands of the globalrisk management community, GARP alsoconducts formal job task analysis surveys todetermine the knowledge, skills and abilitiesrequired to function effectively as a finan-cial risk manager around the world.On an annual basis, GARP’s FRM Commit-tee, comprised of leading risk managementprofessionals and academics, establishesthe topic areas to be tested in the FRMExamination. The topic areas so determinedare then published in the FRM Study Guide.More detailed Knowledge Points associatedwith these topic areas are contained in theFRM AIM Statements, which are also pub-lished and made available to registeredFRM candidates.
Preparation for the Exam
The FRM Exam is a self-study program.In past exams, the typical successful FRMcandidate reports to have studied between200–400 hours. The exact amount of timethat is appropriate for any specific candi-date will, however, vary from candidate tocandidate depending on factors such aswork experience and knowledge base ofrisk management and finance.Due to the sizeable amount of materialcovered in the exam, it is important that acandidate create a weekly study schedulethat is designed to spread out learningof the material over an extended period.Cramming for the exam in the few weeksleading up to it is not recommended. In thispreparation handbook, we recommend astudy plan for each part of the FRM Exami-nation. Each plan is split into 20 sessionsintended to serve as a blueprint for thecandidate in structuring their own scheduleand pacing themselves for the exam.
The purpose of this handbook is to assist FRM candidates in their preparation for the FRM Examinationby suggesting strategies for completing the reading material outlined in the FRM Study Guide and FRM AIM Statements documents, which together form the blueprint for exam topic coverage.