As a result of increasing regulations in Malaysia, 2017 will see risk professionals in high demand, according to recruiting experts Hays.

 

certified financial risk manager, GARP FRM

Candidates who are able to reduce financial institutions’ exposure to risk will stand out as employers step up their efforts to ensure they adhere to regulatory requirements.

‘Risk and compliance will be two hot areas where fierce competition will take place for the right candidates,’ says Tom Osborne, Regional Director of Hays in Malaysia.

As regulators introduce new rules and regulations for fintech firms, we will see greater demand for risk managers and compliance professionals to ensure adherence to new guidelines.

WHAT IS FINANCIAL RISK MANAGER (FRM®)?

The Financial Risk Manager (FRM®) is the internationally recognised certification program offered by the Global Association of Risk Professionals (GARP). It is the world’s most highly respected, widely recognized certification for financial risk management. FRM® certification sets you apart in the global marketplace and helps you move ahead.

To be awarded the FRM® designation, candidates must complete a challenging two-part, practice-oriented examination which assesses a candidate’s ability to manage and measure the most current real-world risk issues.

 

 

GARP FRM – WHO IS IT FOR?

 

The GARP FRM® certification is for those who have a keen interest on financial risk management. It has broad applicability in financial services, insurance, the public sector and academia. Candidates for the FRM® work in various industries, including:

  • Investment banks
  • Commercial banks
  • Central banks
  • Asset management firms
  • Corporations
  • Consulting firms
  • Hedge funds
  • Insurance firms
  • Credit agencies
  • Government/Regulatory agencies

 

WHY  FRM® CERTIFICATION? – Gain a Competitive Advantage 

 

As the financial industry becomes increasingly competitive and concerned about managing risk, distinguish yourself and your ability to add value to an organization. Earning the FRM signals to employers that you are serious about risk management – you have had your knowledge validated against international professional standards. By joining the FRM community, you will become part of an elite group of skilled professionals sought after and employed by the leading financial institutions in the world.

The FRM® designation is the world’s most highly respected, widely recognised certification for financial risk management.

Gain a competitive advantage by differentiating you from your peers

Stand out to top employers and make yourself more desirable for senior risk management jobs.

Objectively benchmarks your knowledge of the major strategic disciplines or financial risk management: Market Risk · Credit Risk · Operational Risk · Risk Management in Investment Management.

Gives you a holistic view and appreciation of the role risk management plays in an enterprise.

Personal satisfaction and achievement in conquering an examination developed by the best risk management practitioners in the world.

Provides an opportunity to join and network with an elite group of FRM®s across the globe.

Enhances your personal and professional opportunities within the world of finance.

Gratification of earning the only risk management certification recognised world-wide.

 

HOW DO I BECOME A FRM®?

 

Recommended Entry Requirement: a Bachelor’s Degree in any discipline. Those without a Bachelor’s Degree may also apply.

Enrol for the examination preparatory programme (recommended).

Register for the FRM® examination – 2 examinations per year, every May & November: Part I (100 MCQs) & Part II (80 MCQs). Candidates are recommended to attempt one part at a time.

Pass the examination – upon passing the FRM® Part I examination, candidates have to pass FRM® Part II examination within 4 years.

Experience and GARP Membership Requirement – candidates who successfully passed the examinations must demonstrate 2 years of professional full-time financial risk management work experience and maintain an active GARP membership in order to be certified as a Financial Risk Manager and be able to use the FRM® designation.

 

FRM Certification Process

 

For FRM Examination Guide, visit GARP FRM website.

 

 

WHAT IS GARP – Global Association of Risk Professionals

 

 

GARP

GARP enables the risk community to make better informed risk decisions through “creating a culture of risk awareness®”. We do this by educating and informing at all levels, from those beginning their careers in risk, to those leading risk programs at the largest financial institutions across the globe, as well as the regulators that govern them.

GARP sets the global standard in professional certification with the FRM®(Financial Risk Manager) and ERP® (Energy Risk Professional) certifications. These programs are rigorous and very well respected across the globe. By demonstrating expertise and commitment to better risk management practices, Certified FRMs and ERPs stand apart in their respective organizations.

GARP FRM - Financial Risk Manager

FRM Exam Part I

A 100 question multiple choice exam, the FRM Exam Part I focuses on the tools used to assess financial risk: quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models. Part I is always offered in the morning and must be completed in four hours or less.

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FRM Exam Part II

The FRM Exam Part II is an 80 question multiple choice exam, emphasizing the application of the tools acquired in Part I: market, credit, operational and integrated risk management, investment management as well as current market issues. Part II is always offered in the afternoon and must be completed in four hours or less.

Please note that if a candidate elects to take Part II on the same day as Part I, their Part II Exam will not be marked by GARP unless they first pass Part I.

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Scoring & Results

There are no penalties for wrong answers. Passing scores are determined by the FRM Committee. Exam results are pass/fail and are emailed approximately six weeks after the exam. Candidates will receive quartile results comparing their performance to other candidates.

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VALUATION & RISK MODELS (30%)

· Value-at-Risk (VaR)

· Expected shortfall (ES)

· Stress testing & scenario analysis

· Option Valuation

· Fixed income valuation

· Hedging

· Country & sovereign risk models & management

· External & internal credit ratings

· Expected & unexpected losses

· Operational risk

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FOUNDATIONS IN RISK MANAGEMENT (20%)

· Basic risk types, measurements & management tools

· Creating value with risk management

· The role of risk management in corporate governance

· Enterprise Risk Management

· Financial disaster and risk management failures

· The Capital Asset Pricing Model (CAPM)

· Risk-adjusted performance measurement

· Multifactor models

· Data aggregation & risk reporting

· Ethics & the GARP Code of Conduct

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QUANTITATIVE ANALYSIS (20%)

· Discrete & continuous probability distributions

· Estimating the parameters of distribution

· Population & sample statistics

· Bayesian analysis

· Statistical inference & hypothesis testing

· Estimating correlation & volatility using EWMA & GARCH models

· Volatility term structures

· Linear regression with single & multiple regressors

· Time series analysis & forecasting

· Simulation methods

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FINANCIAL MARKETS & PRODUCTS (30%)

· Structure & functions of financial institutions

· Structure & mechanics of OTC & exchange markets

· Structure, mechanics, & valuation of forwards, futures, swaps, and options

· Hedging with derivatives

· Interest rates & measures of interest rate sensitivity

· Foreign exchange risk

· Corporate bonds

· Mortgage-backed securities

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MARKET RISK MEASUREMENT & MANAGEMENT (25%)

· VaR & other risk measures

· Modeling dependence: correlations & copulas

· Term structure models of interest rates

· Discount rate selection

· Volatility: smiles & term structures

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CREDIT RISK MEASUREMENT & MANAGEMENT (25%)

· Credit analysis

· Default risk: Quantitative methodologies

· Expected & unexpected loss

· Credit VaR

· Counterparty risk

· Credit derivatives

· Structured finance & securitization

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OPERATIONAL & INTEGRATED RISK MANAGEMENT (25%)

· Principles for sound operational risk management

· Enterprise Risk Management (ERM) & enterprise-wide risk governance

· IT infrastructure & data quality

· Internal & external operational loss data

· Methods of determining operational risk capital

· Model risk & model validation

· Extreme value theory (EVT)

· Risk-adjusted return on capital (RAROC)

· Economic capital frameworks & capital planning

· Liquidity risk measurement & management

· Failure mechanics of dealer banks

· Stress testing banks

· Third-party outsourcing risk

· Regulation & the Basel Accords

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RISK MANAGEMENT & INVESTMENT MANAGEMENT (15%)

· Factor theory

· Portfolio construction

· Portfolio risk measures

· Risk budgeting

· Risk monitoring & performance measurement

· Portfolio-based performance analysis

· Hedge funds

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CURRENT ISSUES IN FINANCIAL MARKETS (10%)

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FRM® Enrolment & Examination Fees (payable to GARP)

New Candidate – FRM® Exam Part I
Early* USD $750 (Enrolment: USD$400, Exam: USD$350)
Standard* USD $875 (Enrolment: USD$400, Exam: USD$475)
Late* USD$1050 (Enrolment: USD$400, Exam: USD$650)

Returning Candidate – FRM® Exam Part I / Part II
Early* USD $350 (Enrolment: USD$0, Exam: USD$350)
Standard* USD 475 (Enrolment: USD$0, Exam: USD$475)
Late* USD 650 (Enrolment: USD$0, Exam: USD$650)
* Please check at www.garp.org for the latest fees & application deadlines

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FRM® Examination Preparatory Program Fee (payable to KMDC)

Application Fee (for new learning members only): RM 318**

Examination Preparatory Program Fee
Part I  RM 5830**
Part II RM 6890**

  • ** All fees inclusive of 6% GST
  • 64 contact hours minimum
  • Inclusive of course notes & mock examination papers
  • Classes will be conducted at KDU University College Utropolis Campus during the weekends
  • Fees may vary every intake
    Excludes financial calculator

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Is there a minimum eligibility requirement for the FRM exam?

No, there is no requirement for appearing in the FRM exam. However, in order to be FRM certified, candidates must:

  • Upon passing FRM Part I, candidates must pass FRM Part II within 4 years.
  • Demonstrate 2 years of professional full-time financial risk management work experience (within 5 years upon passing FRM Part II) and maintain an active GARP membership.

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What is the format of the FRM exam?

FRM Part I Exam is a 4-hour exam containing 100 multiple-choice questions whereas FRM Part II exam is a 4-hour exam containing 80 multiple-choice questions.

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Are study materials included in the price of the exam registration?

No, the study materials are not included in the price of the registration. However, GARP has prepared several materials in order to assist you in successfully preparing for the FRM Exams, including a number of materials that are offered free of charge. A list of all study materials offered by GARP include the following:

 

  • FRM Exam Part I Books (in print and/or digital)
  • FRM Exam Part II Books (in print and/or digital)
  • Practice Exams
  • Learning Objectives
  • Study Guide
  • Changes to the Study Guide from the year prior
  • Candidate Guide
  • 15-Weekly Study Plan

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How many hours are required to prepare for the FRM Exam?

Candidates’ preparation times will vary based on their professional experience, academic background, and familiarity with the concepts tested on the curriculum. On average, individuals devoted approximately 240 hours to Exam preparation according to a survey conducted.

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When should I register and pay for the FRM exam?

Payment must be received by GARP no later than midnight (New York time) on the closing date of each registration period. Registration period includes Early, Standard and Late.

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If I fail the FRM Part I exam , do I have to re-sit the exam within a certain period of time?

No, there are no restrictions. When you re-register for FRM Exam Part I, you are required to pay the exam fee only.

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I have passed the FRM examinations but I do not have relevant work experience. How can I get certified?

Please note that upon passing FRM Part II examination, candidates will have a time frame of 5 years to demonstrate 2 years of professional full-time financial risk management work experience. In the meantime, GARP will issue a letter stating that the candidate has passed the FRM exam. The candidate will be considered as “FRM Holder” but not “Certified FRM Holder”.

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I am being offered an internship position. Does this count towards my two years of experience?

No, an internship position does not meet the requirement. FRM Certification requires 2 years of professional experience.

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Where can I find more information about FRM?

Please visit GARP FRM’s “Frequently Asked Questions” web page here:

http://garp.org/#!/frm/frequently-asked-questions

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CFP & FRM Enquiry Form

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Disclaimer: GARP does not endorse, promote, review or warrant the accuracy of the products or services offered by KDU Management Development Centre Sdn Bhd of GARP related information, nor does it endorse any pass rates claimed by the Exam Prep Provider. Further, GARP is not responsible for any fees or costs paid by the user to KDU Management Development Centre Sdn Bhd, nor is GARP responsible for any fees or costs of any person or entity providing any services to KDU Management Development Centre Sdn Bhd. ERP®, FRM®, GARP® and Global Association of Risk Professionals™, ICBRR® and FRB™ are trademarks owned by the Global Association of Risk Professionals, Inc.

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