WHAT IS FINANCIAL RISK MANAGER (FRM®)?

The Financial Risk Manager (FRM®) is the internationally recognised certification programme offered by the Global Association of Risk Professionals (GARP). 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.

WHO IS IT FOR?

The 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?

  1. The FRM® designation is the world’s most highly respected, widely recognised certification for financial risk management.
  2. Gain a competitive advantage by differentiating you from your peers
  3. Stand out to top employers and make yourself more desirable for senior risk management jobs.
  4. Objectively benchmarks your knowledge of the major strategic disciplines or financial risk management: Market Risk · Credit Risk · Operational Risk · Risk Management in Investment Management.
  5. Gives you a holistic view and appreciation of the role risk management plays in an enterprise.
  6. Personal satisfaction and achievement in conquering an examination developed by the best risk management practitioners in the world.
  7. Provides an opportunity to join and network with an elite group of FRM®s across the globe.
  8. Enhances your personal and professional opportunities within the world of finance.
  9. Gratification of earning the only risk management certification recognised world-wide.

HOW DO I BECOME A FRM®?

  1. Recommended Entry Requirement: a Bachelor’s Degree in any discipline. Those without a Bachelor’s Degree may also apply.
  2. Enrol for the examination preparatory programme (recommended).
  3. 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.
  4. Pass the examination – upon passing the FRM® Part I examination, candidates have to pass FRM® Part II examination within 4 years.
  5. 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.

 

WHAT IS GARP?

 

PROGRAMME FEES

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   U SD 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

 

FRM® Examination Preparatory Programme Fee (payable to KMDC):

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

 

Examination Preparatory Programme 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

 

PROGRAMME OUTLINE

FRM® Part I    Exam Weight

 

FOUNDATIONS IN RISK MANAGEMENT  

·       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

20%

 

QUANTITATIVE ANALYSIS

·      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

20%

 

FINANCIAL MARKETS & PRODUCTS

·      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

30%
VALUATION & RISK MODELS

·      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

30%

 

FRM® Part II Exam Weight

 

MARKET RISK MEASUREMENT & MANAGEMENT

·      VaR & other risk measures

·      Modeling dependence: correlations & copulas

·      Term structure models of interest rates

·      Discount rate selection

·      Volatility: smiles & term structures

25%

 

CREDIT RISK MEASUREMENT & MANAGEMENT

·      Credit analysis

·      Default risk: Quantitative methodologies

·      Expected & unexpected loss

·      Credit VaR

·      Counterparty risk

·      Credit derivatives

·      Structured finance & securitization

25%

 

OPERATIONAL & INTEGRATED RISK MANAGEMENT

·      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

25%

 

RISK MANAGEMENT & INVESTMENT MANAGEMENT

·      Factor theory

·      Portfolio construction

·      Portfolio risk measures

·      Risk budgeting

·      Risk monitoring & performance measurement

·      Portfolio-based performance analysis

·      Hedge funds

15%

 

CURRENT ISSUES IN FINANCIAL MARKETS 10%

CFP & FRM Enquiry Form

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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