GARP.FRM.PQ.P2 Liquidity Risk in BT Curriculum

[Manisangsu]

hi David , Nicole

I could not help noticing that the BT materials covering Liquidity and Treasury Risk paper for FRM part 2 is relatively lighter ( vs the other papers in BT ). Especially the number of practice questions feel too less ( again compared to other areas) .
My intuitive explanation is that perhaps this is a relatively new addition in the GARP curriculum , and hence it hasnt got enough time as other papers for materials to develop . But i wanted to check if there is any other reason for this ( e.g. is the less materials a function of expected testability per David's view )
Also this brings me to the second question , is that i feel slightly underprepared in this area ( due to less practice vs other area ) and what would be your advice here.

Apologies if these are duplicate questions ( i did try to search the forum but didnt find anything.

 

[David Harper CFA FRM]

Hi @Manisangsu You intuition is correct: the Part 2 topic Liquidity and Treasury Risk was added only in 2020. The other topics go back many years (most of them over 5+ years that I've been running BT and writing PQs). Given it's a relatively new addition, there are fewer questions.

Re: feeling underprepared: yes, I appreciate that. It is almost an inevitable feeling. As I've told GARP directly, they have too many assignments in this section especially. It remains "unseasoned" with respect to test questions and being "road-tested." I don't have a great answer for you: we can only deal with the syllabus they develop. Actually, my advice would be: given it is 15% of the weight, I would not over-spend time on it, nor would I feel the burden of understanding every nook and cranny. In truth, most of the material won't be tested. I would apply the Pareto principle (80/20) to the extent possible; e.g., https://elearningindustry.com/pareto-principle-to-learning-ways-apply

I hope that's helpful, good luck!

 

[Manisangsu]

Hi @Manisangsu You intuition is correct: the Part 2 topic Liquidity and Treasury Risk was added only in 2020. The other topics go back many years (most of them over 5+ years that I've been running BT and writing PQs). Given it's a relatively new addition, there are fewer questions.

Re: feeling underprepared: yes, I appreciate that. It is almost an inevitable feeling. As I've told GARP directly, they have too many assignments in this section especially. It remains "unseasoned" with respect to test questions and being "road-tested." I don't have a great answer for you: we can only deal with the syllabus they develop. Actually, my advice would be: given it is 15% of the weight, I would not over-spend time on it, nor would I feel the burden of understanding every nook and cranny. In truth, most of the material won't be tested. I would apply the Pareto principle (80/20) to the extent possible; e.g., https://elearningindustry.com/pareto-principle-to-learning-ways-apply

I hope that's helpful, good luck!

Thank you @David Harper CFA FRM . This is very useful.

Not sure if you have ever written any blog / material on how to look at these exams , which reflect your valuable experience with the FRM exams as the insights above . More so , because GARP has managed to keep this exam framework quite unstructured ( if i compare say with the CFA exams)

If you ever find the time for it , i am sure your students and followers will find great value in it