FRM Exam Preparation – Part 2

Course Fee

7500

Class Duration

108 Hours

Sessions

36

No of Weeks

18 Weeks

Course Calendar

FRM P2 FASTRACK COURSE
(1 Full Week)

40 Hrs of Classroom Tutoring 2 Mock Tests

Timing: SUN, MON, TUE, WED, THUR(Fastrack Course)
08:00AM – 5:00PM

Course Fees: AED 3500

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FRM PART 2
(FULL COURSE)

72 Hrs of Classroom Tutoring 4 Mock Tests

Timing: FRI & SAT
(WEEKDAYS)
10:00PM – 12:00AM

Course Fees: AED 7500

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Overview

What is FRM PART 2?

FRM PART 2 – Financial risk management is a professional certification test. FRM PART 2 is the 2nd of the 2-part FRM exam. FRM is a highly sought-after certification by candidates who are keen on specializing in risk management in businesses.

Who Conducts FRM PART 2?

FRM PART 2 is administered by The Global Association of Risk Professionals (GARP), a private nonprofit organization in USA.

Who writes FRM PART 2?

FRM PART 2 is written by working professionals or college students or candidates who have qualified certain Professional Certification courses such as ACCA, CMA, CPA, etc.

What is the test duration of the FRM PART 2?

FRM PART 2 test is conducted on a single day for a total duration of 4 hours.

How many questions are there on FRM PART 2?

A total of 80 multiple choice questions are there on the FRM PART 2.

What is the score distribution of FRM PART 2?

The score distribution of FRM PART 2 in each section is as follows

· Correct Answer – 1 Point

· In Correct Answer / Unanswered – 0 Point

What is the General Test Structure and Time Allowed for FRM PART 2?

· Afternoon Session – 80 multiple choice questions – 4hr

What is the question pattern?

For the FRM PART 2, the question pattern is divided as follows

· 80 Questions – Multiple-choice Questions

What are the topics & its weightage in FRM PART 2?

FRM Part 2 syllabus is divided into 5 components:

1. Market Risk Measurement & Management – 25%

2. Credit Risk Measurement & Management – 25%

3. Operational & Integrated Risk Management – 25%

4. Risk Management & Investment Management – 15%

5. Current Issues in Financial Markets – 10%

What is the FRM PART 2 test environment?

FRM PART 2 is a Paper- based test.

When is the FRM PART 2 score published?

Since FRM PART 2 is a paper-based test, it requires time for scoring, the official test score would be available 6 weeks after the test date.

Can I cancel the FRM PART 2 test scores after taking the test?

No

How long is FRM PART 2 pass result valid?

Candidates should pass the 2 parts of the exam and complete 2 continuous years of professional experience in management accounting and/or financial management within 5 years from the date of passing the tests.

How many times is the FRM PART 2 administered in a year?

FRM PART 2 is a paper-based test administered twice a year in the UAE.

Test Date Early Registration Standard Registration Late Registration
18th May 2019 31st January 2019 28th February 2019 15th April 2019
16th November 2019

Eligibility criteria for FRM PART 2?

· There are no minimum eligibility requirements to appear in the FRM exam

How many times can the candidate take FRM PART 2?

In a span of one year, the student is entitled to take FRM PART 2 twice.

Should I write FRM part 1 first or FRM part 2 first or write both on the same day?

Candidates attempting to write FRM tests have 2 – options:

1. A candidate administers FRM part 1 only on the test day and awaits results. After a candidate clears part 1, he can write FRM part 2 afterwards.

2. Alternatively, a candidate can choose to write both FRM part 1 & part 2 on the same day. But, one should be aware that the test administrators will evaluate a candidate’s FRM part 1 paper first and only if he / she has cleared his part 1 paper, the test administrator will evaluate the part 2 paper.

What are the benefits of FRM PART 2?

Successfully completing FRM PART 2 is the beginning of your career in the field of management accounting. With the FRM PART 2 qualification, Candidates should be able to find an entry level job in the risk management division of banks, investment firms, insurance companies, commodity trading companies, brokerage firms, etc. But keep in mind that completing both parts and finally obtaining the FRM is the ticket for further growth and opportunities.

What is the FRM PART 2 Exams Fees Structure?

1. FRM Enrollment Fee: $400

2. FRM Exam Fee: $350 – Early, $475 – Standard, $650 – Late registration


https://www.garp.org/#!/frm/fees-payments

How to register for FRM PART 2?

Interested candidates may register for FRM PART 2 online. The candidate may follow the online registration process – · The candidate should create an account in the garp.org website

· Complete the registration form and pay the FRM Enrollment Fee

· Select the Date and Location for FRM PART 2 Test

· Make a payment for FRM PART 2 exam fee

Where is the test center for FRM PART 2 in UAE?

1) X

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Course Syllabus

Chapter 15: Advanced Risk Models: Univariate

a) Back testing
b) Extreme Value Theory
c) Coherent Risk Measures

Chapter 16: Advanced Risk Models: Multivariate

a) Risk mapping
b) Joint Distributions of Risk Factors
c) VAR Methods
d) Limitations of Risk Systems

Chapter 17: Managing Volatility Risk

a) Implied Volatility
b) Implied Correlation
c) Variance Swaps
d) Dynamic Trading
e) Convertible Bonds and Warrants

Chapter 18: Mortgage-Backed Securities Risk

a) Prepayment Risk
b) Securitization
c) Tranching

Chapter 19: Introduction to Credit Risk

a) Settlement Risk
b) Overview of Credit Risk
c) Measuring Credit Risk
d) Credit Risk Diversification

Chapter 20: Measuring Actuarial Default Risk

a) Credit Event
b) Default Rates
c) Recovery Rates
d) Assessing Corporate and Sovereign Ratings
e) Regulation of Credit Rating Agencies

Chapter 21: Measuring Default Risk from Market Prices

a) Corporate Bond Prices
b) Equity Prices

Chapter 22: Credit Exposure

a) Credit Exposure by Instrument
b) Distribution of Credit Exposure
c) Exposure Modifiers
d) Credit Risk Modifiers

Chapter 23: Credit Derivatives and Structured Products

a) Introduction
b) Credit Default Swaps
c) Other Contracts
d) Structured Products
e) CDO Market
f) Discussion

Chapter 24: Managing Credit Risk

a) Measuring the Distribution of Credit Losses
b) Measuring Expected Credit Loss
c) Measuring Credit VAR
d) Portfolio Credit Risk Models

Chapter 25: Operational Risk

a) Importance of Operational Risk
b) Identifying Operational Risk
c) Assessing Operational Risk
d) Managing Operational Risk
e) The Basel Operational Risk Charge

Chapter 26: Liquidity Risk

a) Sources of Liquidity Risk
b) Asset Liquidity Risk
c) Funding Liquidity Risk
d) Managing Liquidity Risk

Chapter 27: Firmwide Risk Management

a) Integrated Risk Management
b) Best Practices Reports
c) Organizational Structure
d) Controlling Traders
e) Risk-Adjusted Performance and RAROC

Chapter 28: The Basel Accord

a) Steps in the Basel Accord
b) Definition of Capital
c) The Basel I Credit Risk Charge
d) Illustration: Citibank
e) The Basel II Accord
f) The Market Risk Charge

Chapter 29: Portfolio Risk Management

a) Institutional Investors
b) Performance Evaluation
c) Risk Budgeting

Chapter 30: Hedge Fund Risk Management

a) The Hedge Fund Industry
b) Leverage, Long Positions, and Short Positions
c) Hedge Funds: Market Risks
d) Hedge Funds: Specific Risks
e) Dealing with Hedge Fund Risks