# Topic: FRM Exam

## ERP vs. FRM Exam

Question: I know ERP and FRM are two different certifications, but I would like to know which one is more beneficial from a career perspective? Should I do FRM or ERP if I want to be in the risk management field? Answer: Here are some details and comparison points...## CFA Vs. FRM: Which Designation is Right for You?

This is one of the most commonly debated questions among students who have made up their mind about furthering their career and adding a designation such as CFA, FRM, or CAIA to their name. Making the right choice can be crucial for a couple of reasons: 1) Each of...## FRM Exam Study Plan in Excel

FRM is a difficult exam with a huge list of readings prescribed by GARP. FRM Part 1 alone has 52 readings for teh current syllabus. Along with a job and With limited time to study it is important that you keep track of your studies and have a study plan to ensure that...## Key Dimensions that Characterize Acceptable Data

Organizing the rules of data quality into dimensions not only improves the specification and measurement of the data quality, it also provides the framework under which quality can be measured and reported. This in turn enables better governance of data quality. Tools...## Risk Taking: A Corporate Governance Perspective

This reading is a part of the syllabus for FRM Part 1 Exam in the section ‘Foundations of Risk Management’. In the first two sections the book lays out the scope of risk management by defining risk and exploring risk governance. The next few sections look...## Standard Error in Linear Regression

A simple (two-variable) regression has three standard errors: one for each coefficient (slope, intercept) and one for the predicted Y (standard error of regression). While the population regression function (PRF) is singular, sample regression functions (SRF) are...## Type I and Type II Errors

When drawing an inference (from a sample statistic, about a population parameter), there can be two types of errors: Type I and Type II. Type I error, also known as error of the first kind, occurs when the null hypothesis is true, but is rejected. Type II error, also...## Bootstrapping Value at Risk (VaR)

This is an illustration, using a simple portfolio of four stocks over one week, of the bootstrap method. Like the Monte Carlo, we want to simulate each stock (in the portfolio) forward in time. If today is time t, then we want to simulate the stock on t+1, t+2, t+3,...## Extreme Value Theory

Extreme value theory (EVT) aims to remedy a deficiency with value at risk (i.e., it gives no information about losses that exceed the VaR) and glaring weakness of delta normal value at risk (VaR): the dreaded-fat tails. The key is the idea that the tail has it’s...