Which is the best way to study for the FRM exam?

Let me give a quick overview of what you can expect from the FRM exam and how to study for it:

Let’s Understand the Exam Format:

• FRM Part I – The FRM Level 1 exam consists of 60+  topics across 4 subjects, and it is a 4-hour long exam without any break in the middle. It’s designed to test your conceptual knowledge, so you can expect more theory questions than practical ones (around 60-65% theory and 35-40% practical).
• FRM Part II – FRM part 2 is the second and final level of FRM certification. The FRM part 2 is considered as an advanced level exam that has 6 topics. The mode of exam is computer-based testing and it has 80 MCQ questions. 

How many study hours are needed?

• FRM Part I – On average, it’s suggested that you study for 340-400 hours for the FRM Level 1 exam. You can break it down into 180 hours for first-time reading, 100 hours for revision with book questions, and 70 hours for a second revision.
• FRM Part II – Usually the prep can be done in 450 hours, with approximately 220 hours for first time reading, 120 hours for first revision and 110 hours for second revision + Mocks.

Which books are to be referred to?

• FRM Part I – Schweser books are the most commonly used material for FRM Part I.
• FRM Part II – In part 2 we would suggest to go through the Schweser books once for all topics, after that go for GARP or Bionic turtle for the difficult chapters as they have been described well and at a stretch in these books.

Question Banks and Mock Tests 

• FRM Part I – To help practice, there are plenty of question banks available, such as Quintedge (Disclaimer – I’m the co-founder at Quintedge) or Bionic Turtle. I won’t recommend Schweser since the difficulty level is not at par with the exam.
• FRM Part II – Same recommendation as Part I. You can also consider Analystprep.

What study sequence should you follow?

• FRM Part I – Start with Quantitative Analysis (Book 2), which is mostly practical and statistics-related. Next move to Foundation of Risk Management (Book 1), which is mostly theoretical in nature. Then move on Financial Markets and Products & Valuation and Risk Models (Book 3 & 4) together, as they cover similar topics like interest rates and derivatives.
• FRM Part II – Start with Market Risk, then move on  to Credit risk. Then, Operational Risk > Investment Risk > Liquidity Risk > Current Issues. I have given a logical explanation of the above sequence in the blog which is given in References below.

Most Importantly, Stay Motivated!

With so many topics to study, it’s easy to feel exhausted and demotivated. To stay motivated: take a cheat day once every three weeks, mix it up by studying lighter topics after complex ones, and talk to other candidates or those who have cleared Level 1 on LinkedIn or Telegram.

I hope this gives you a good starting point for your FRM journey! Remember to take it one step at a time, and stay focused and motivated. Good luck!

References
[1] https://quintedge.com/how-to-study-for-frm-part-2

[2] https://quintedge.com/how-to-study-for-frm-part-1/