[Tumtum]

Hello all.

A quick update from my side on the progress made so far.

I just finished the module of “Operating & Integrated Risk Management, Legal” (OIRML), which carries 25% weightage in the 2007 FRM exam.
Nice read I must say but it is indeed a lot of reading and understanding.
It needs to be digested to score in this section I must say.
Key points are….

• Chapters on Model Risk Management demand more attention. It is a bit abstract as to what they talk about so might require more time assimilating the concepts.
• Basel 2 reference readings need to be referred from some other source too. They are very important from the exam point of view but unfortunately not very well covered by the Schweser notes.
• Counterparty Risk Management Policy Group-2 (CRMPG2) guiding principles are very important from the exam point of view and one should expect a lot of questions from this particular topic. It contains some 47 principles but if you try to memorize it, you will be screwed. Try and understand them intuitively.

What I feel is that this study module needs to be read repeatedly for success with questions and since it forms a mighty 25% of total weightage, I suggest that those having problems with memorizing set aside some time to focus more on this piece.

The next module that I will take up and finish within another month or so is the Market Risk Measurement and Management (MRMM), which commands 30% weightage in the 2007 FRM exam.
I already have a finance background and have studied the contents of this module once in detail while I was studying for my masters.
However that was a mighty 4 years back (in 2003) and though I do intend to find the ground familiar, I am in no way underestimating the toughness. John C Hull is likely to be by my bedside for the next month apart from the Schweser notes and anyone liking to have any input from my side is most welcome to pour in their queries.

Hope this was useful to you guys. All the best and happy studying till I come up with my next update by June 30, 2007.

BTW CTD, what progress have you made so far studying the MRMM syllabus…any inputs will be greatly appreciated.

Cheers.

[ryan_g11]

Originally Posted by Tumtum

I was expecting this offshoot from the AICTE/CFA fiasco. There might be many more like you who would likel to enrol for the FRM.

However, like you have stated in your post,I would offer you a frank advice. What do you want to do with an FRM degree? Are you going to work in the risk management function? If not and if you want to be in research only then I don't think you should be doing it. The key need of the hour is focus and you seem to be losing it as the saying goes "fear multiplies faster than rabbits".

Don't enrol in the FRM just coz you have 1 year in spare....just think if it will be useful to you later. Don't accumulate degrees just for the heck of it. It may end-up without giving you much tangible benefit.

Sorry for discouraging you but as you stated in one of your previous posts, you analyze th high yield industrial stocks and all and that means you are very much into research et al. If I were you and were liking the work that I do, then I wouldn't enrol for FRM since it would not be in my focus list.

Hope I did not offend you.

No no...u havent offended me ! agreed i would be wanting to work mainly in research-analysis...but my point is that an FRM degree wudnt hurt, wud it?
and am 21 rite now...and 1 year for Level 2 yet (it seems)...of course i'll be working...but still an whole year in time enough...so i thnk taking a shot is worth it.i mean it isnt like m strting a course on microbiology ...hehe...FRM is kinda related at least.
lets cee...thanks for ur reply tho ! could you please elaborate on the quant front dude?

[Tumtum]

Originally Posted by ryan_g11

No no...u havent offended me ! agreed i would be wanting to work mainly in research-analysis...but my point is that an FRM degree wudnt hurt, wud it?
and am 21 rite now...and 1 year for Level 2 yet (it seems)...of course i'll be working...but still an whole year in time enough...so i thnk taking a shot is worth it.i mean it isnt like m strting a course on microbiology ...hehe...FRM is kinda related at least.
lets cee...thanks for ur reply tho ! could you please elaborate on the quant front dude?

FYI, quant is just 10% in weightage in the entire syllabus and of that 10%, nearly half is probability & testing of hypothesis, which I am sure you must have covered in your CFA L1, so you don't have anything to worry of.

Frankly speaking it is not that you are taking a course in microbiology but if you want to be in research, then why at all do you want to spare time and money to do it too, thats what I can't figure out. Instead, you can not only do your L2 better but also have a peek at L3....might give you a good ground when you appear for these exams.

Look at the big picture. You are 21, will complete CFA by max age of 25. You will not only have a great degree but also 4 years of work ex....continue working and you could be soon in the US , working for a buy-side firm or a fund manager or even preparing for your MBA by 27-28 and life will be really cool thereafter. This all in your case can also happen without an FRM because the path you have chosen does not warrant an FRM after your name.

Bottomline is you should be able to cut the crap and find your niche, something which I feel you are not doing at the moment and just worrying about how to kill time in between 2 exams.

Give it a serious thought. Take care and feel free to ask for more.

[ryan_g11]

heyyy Tumtum, are there any registration requirements for FRM?Chckd their site...and it doesnt say anything...so i am assuming a 'graduate degree' should be enough.altho we will get our certificate after 2 years of work-ex, we can still atempt the exam widout it.is my interpretation correct?
thanks in advance...

[Scorpion King]

Hey Tumtum,

I intend to take up FRM exam, however havent made up my mind whether to take a shot this year or the next . Had a few questions to ask u, i m sure u ll be able to help considering ur knowledge on the subject

Read this on GARP website "Please be advised that GARP automatically renews individual membership one year from the initial sign up date for those who pay via credit card. An email notification of this membership charge will be sent to you four weeks prior to your renewal date"

My question
1> If i register by credit card will GARP debt membership fees every year without seeking my approval for the same??

2> If i clear the exam and i take the reqd 2 years experience then do i need to keep payin membership fees to GARP to be a member and use FRM with my name??

3> The membership is valid only for a year, which means returning candidates need to pay membership fees to appear for the exam???

Thank u in advance

[Tumtum]

Originally Posted by Scorpion King

Hey Tumtum,

I intend to take up FRM exam, however havent made up my mind whether to take a shot this year or the next . Had a few questions to ask u, i m sure u ll be able to help considering ur knowledge on the subject

Read this on GARP website "Please be advised that GARP automatically renews individual membership one year from the initial sign up date for those who pay via credit card. An email notification of this membership charge will be sent to you four weeks prior to your renewal date"

My question
1> If i register by credit card will GARP debt membership fees every year without seeking my approval for the same??

2> If i clear the exam and i take the reqd 2 years experience then do i need to keep payin membership fees to GARP to be a member and use FRM with my name??

3> The membership is valid only for a year, which means returning candidates need to pay membership fees to appear for the exam???

Thank u in advance

I will answer your questions in the order you posted them.


1) Yes, looks like so prima facie that they will charge your credit card every year unless you put through a stop payment request. Personally speaking, I don't have to worry coz my study for FRM is sponsored by my company and I have made payment through my corporate credit-card and as you know, corporate credit-card accounts are yearly in nature- mine ends in December this year and my company will get my current card scrapped and grant me a new one for the next year beginning January, so I don't have to worry...waahahaa !


2) No, you can use the FRM designation even if you are not a member of GARP since by clearing the examination, you have garnered a right to use the suffix. Membership is useful mainly for networking and getting big discounts on any events sponsored by the institution.


3) Yes and No. Yes you need to pay fees if your membership ends before the time the examination is undertaken that year. No if the exam falls before the date on which your registration ends.


Hope this clears your questions. Feel free to ask more.

[Scorpion King]

Thanks Tumtum,

As i earlier mentioned i m not sure whether i ll take up the exam this year or next. However i plan to atleast start reading up somethin alteast and then take a call. What i want to know is will this year's material be different than the 1 that ll be used next year?? I am askin this coz sometime back there was a discussion on the forum wherein u mentioned tat last year's material is no longer useful coz GARP has come up with lastest edition of FRM handbook. Also do u know any website where i can dload FRM books for free... d site tat was mentioned in this forum www.tomcfa/download dint work ??:. Have u tried dloadin from this site??

[p_jit]

Originally Posted by chets1920

Hi !

Chets here. Planning to appear for nov 2007 FRM. would like to pool in for FRM material. pls let me know. Thanks

Does anyone has Solution manual for Option, futures & other derivatives of John Hull? I am also preparing for FRM-2007. Anybody in mumbai who is preparing for same, please contact me at p_jit@rediffmail.com

[p_jit]

It seems u have moving at a good pace. I am stuck with quant and i have decided to let it go for the time bieng. Tumtum how much time are u devoting for your studies?

[youKnowWho2006]

Hi TumTum, Thx for all of your sharing. I'm doing FRM this coming Nov too although I just started studying now coz I had level 2 CFA exam last week. I need your advices on some of the material matters. I just graduated from school wif a degree in IT and havent started working yet. So I dont have that much money (350 USD ++) to buy the schweser notes. I'm thinking of using the FRM handbook 3rd edition which i can find the soft copy. I would like to ask you that compared to the schweser notes 2006, how different is the FRM handbook? Another question is that from schweser 2006 and schweser 2007, what are the changes?? I intend to read through the handbook first and buy the schweser notes later if neccessary. Thx in advance.

Btw, I find the summary of your reading very useful. Please keep up the good work.