Should I appear for both FRM Exam Part I and Part II together?

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If you are a FRM Exam candidate currently weighing in the decision of whether to appear for both parts of the exam together on the same day, then the following few pointers might come in handy.

1. The Suggestion

To state it precisely, and that too in the beginning of this post itself, my inclination and suggestion is to not take the two parts together. A few upsides and downsides of taking the two parts of the exam together are explored below.

2. The Downsides

For any candidate, unconditional on his/her academic and work profile, taking both parts together may present the following downsides:

A. Content Overload

I’m sure you have factored this in already. The total material for the two parts put together (60 readings for Part I and 101 readings for Part II) make it a difficult proposition to retain everything on that single day. The conceptual readings are still fine (especially if you have done them inside out, slowly and steadily, a concept at a time), the theoretical and supervisory readings are the problem here. These appear in both parts and may be a bit too much to retain.

B. Your Preparation Efforts

Preparing for the exam (I mean the journey in the approximately four months that you devote towards preparing for an individual part) is more efficient if you do one part at a time. You’ll not see the connections between readings and their underlying essence if you do too much together i.e. you have 161 odd readings to cover. When it starts to get overwhelming, which it would at some stage, your approach towards the curriculum will soon boil down to repeatedly monitoring where you stand in this space of 161 readings.

C. Sequenced, Maybe for a Reason

The exam is structured into two parts i.e. Part I to cover the foundations of financial engineering, risk management and quantitative analysis and Part II finally, to then apply all concepts to practical applications of managing risks of various types. You’ll appreciate Part II more if you do it after Part I i.e. when you have confidently nailed all foundation level concepts Part I exposes you to.

D. Different Exam Types

Part II is a slightly tricky exam, with fewer numericals and more concept heavy questions. I wouldn’t want to appear for it in the afternoon slot, after having slogged through a 4 hour exam in the morning (the Part I).

3. The Upsides

Taking both exams together is more of a personal call, based on your unique personal circumstances, academic background and test-taking aptitude. There are indeed candidates who take both parts together, and I’m sure do end up clearing both (or hopefully Part I at least). Some candidates mostly focus their preparation efforts and intent on Part I and still appear for Part II in the afternoon, for an added bonus of ‘what if I do end up clearing it’. Please do aim for both parts together if you imagine yourself in one (or both) of the following brackets:

  1. [You start with an advantage] You have just graduated from a relevant academic program or you have cleared two or more levels of CFA or say, you’re currently working in the risk-related domain. This in some sense, implies that you have already been exposed to a healthy portion of the FRM Part I curriculum (quantitative analysis, fixed income, derivatives, portfolio theory).
  2. [A career boost] Career-wise you perceive a significant benefit in clearing both parts quickly (say, if you already have two years of relevant experience under your belt and clearing both parts will grant you the credentials your CV can quickly benefit from). Otherwise, please space it out – one part at a time.

4. The Strategy

If you decide to take both parts together, please do take note of a couple of aspects. Firstly, you will gain immensely, if you follow a certain ‘appropriate’ sequence of readings that leverages upon the connections between readings, offers some kind of focus within categorizations / mini-collections of readings and to keep you motivated, efficiently mixes things up. You have a broad curriculum to cover, and a well-laid out study plan will provide you with weekly milestones to track your progress. Secondly, and more importantly, strongly prioritize Part I of the exam. If you have to cut any corners, let that be with regards to your Part II coverage, and not for Part I. Given your Part II attempt won’t be graded if you do not clear Part I, you do not want to walk out of the exam center having achieved nothing after an 8-hour ordeal.