This year, the FRM program will undergo a transition from one exam to a two level format. This change is being made to accommodate the growing demands placed on financial risk managers and to supply FRM candidates with the necessary array of current and essential risk management topics. Since this is a transition year, candidates will have a choice to sit for either the Full FRM exam or the Level 1 FRM exam. The exam date for both is November 21.

Full FRM Exam

The Full FRM exam, offered this November, will be similar in format to previous FRM exams. It will be a 5-hour exam and contain 140 multiple choice questions. The topic areas will change slightly from the previous five module format, but the exam will still focus on key risk management concepts as it has in the past. The topic areas for the full exam will be as follows:

• Foundations of Risk Management
• Quantitative Analysis
• Financial Markets and Products
• Valuation and Risk Models 
• Market Risk Measurement and Management
• Credit Risk Measurement and Management
• Operational and Integrated Risk Management
• Risk Management and Investment Management
• Current Issues in Financial Markets

Level 1 FRM Exam

The Level 1 exam will also be offered this November and will be a 4-hour exam containing 100 multiple choice questions. This exam is basically the first half of the Full FRM curriculum and will test on material from the first four topic areas:

• Foundations of Risk Management
• Quantitative Analysis
• Financial Markets and Products
• Valuation and Risk Models

Going Forward

Starting in 2010, the exam will be offered twice a year, in May and in November. Candidates will need to pass the Level 1 exam before moving onto Level 2. In other words, after this year, there will no longer be an option to take the entire exam in one sitting. Candidates who pass Level 1 in 2009 can proceed to take Level 2 in May of 2010.

FRM Study Products

Kaplan Schweser will be offering 2009 study materials for both the Full FRM exam and the Level 1 FRM exam. Our product offerings and availability dates will be posted on our website soon. If you have any comments or questions regarding the changing exam structure, please reply to this blog post, and I will do my best to address your questions. There is also a long list of questions and answers on GARP’s website (www.garp.com/frmexam/faq.aspx).

Be sure to check back for further information about the changing FRM landscape. Best wishes.

Congratulations to all candidates who passed the 2008 FRM exam! This year, just over 42% of test-takers earned a passing score. GARP has provided a performance breakdown for all candidates, which illustrates quartile rank within each module. If you have not already viewed this information, your quartile rankings can be accessed by clicking on the following link:

http://www.garp.com/examanalysis/FRM2008.aspx

A majority of candidates agreed that the 2008 FRM exam was a challenging test of risk management knowledge coupled with a grueling exercise in time management. For FRM 2009, we look forward to offering new and enhanced study tools that will assist current and future candidates during their pursuit to become certified Financial Risk Managers.

Stay tuned to our website for more information on our 2009 FRM product offerings and product availability dates. Best regards.