How I cracked FRM Part 1 exam in 4 months while working full time: Key tips

Cracked the FRM Part 1 exam in November 2022 with results in January 2023, achieving top quartile scores across all four topics. The focus was on using targeted exam strategies to secure a passing score rather than delving into every detail for deep learning. For those seeking a comprehensive understanding, it is recommended to invest additional time and consult a wider range of resources.

The exam certification is designed to bolster careers across multiple disciplines, from commerce and business to engineering graduates seeking a transition into finance. It serves as a practical entry point into risk management while also enhancing prospects for roles in broader finance sectors, including corporate finance and investment banking. Additionally, it offers a competitive edge for those pursuing or holding an MBA, improving both internships and placement opportunities. A solid background in statistics, finance fundamentals, and risk management further amplifies the advantage for candidates preparing for this exam.

A detailed study plan, such as using a spreadsheet to allocate pages and hours per reading, lays the foundation for a realistic exam timeline spanning several months. Building in a full cycle of revision before mock exams ensures mistakes are identified and remedied. Real-life factors, like balancing a full-time job, demand flexible adjustments as some complex topics require more time while easier ones are completed faster. Consistent progress tracking and revisiting challenging areas ultimately pave the way for success on the final exam.

Adhering to a set exam date is vital; once committed, follow through with your study plan and leverage diverse resources. Emphasize covering a wide range of topics instead of delving too deeply, as most exam questions are straightforward. Prioritize the 80% of questions that are easier and use remaining time to revisit tougher ones, ensuring every question is attempted. A comprehensive review—from fundamental governance and case studies to modern portfolio theory and risk aggregation—optimizes performance, even when some topics seem tedious.

Core Quantitative Techniques: Probability, Regression, and Time Series Probability, random variables, moments, and hypothesis testing establish a solid foundation for quantitative analysis and equip one to tackle exam questions efficiently. Regression analysis is highlighted as crucial for solving numerical problems, especially within autoregressive and moving average contexts. Emphasis is placed on applying equations practically rather than delving into excessive theoretical depth. Mastery of fundamental time series methods further streamlines the approach to overcoming exam challenges.

Advanced Financial Instruments and Risk Management Strategies A broad spectrum of topics covers banks, insurance, pensions, and fundamentals of derivatives alongside markets like futures, forex, and forwards, providing a comprehensive overview of financial instruments. The focus on options and interest rate tools underscores vital practical aspects, such as repayment speeds and dollar rules, while complex trading strategies can be optionally skipped. Essential risk management concepts—volatility measures, credit ratings, country and operational risks, and arbitrage—form the backbone of the analytical framework. Price modeling techniques, including binomial trees, Black–Scholes formulas, and options Greeks, bridge conceptual understanding with the challenges of memorizing intricate formulas.