May 2011 Pass Rates Released - Exam was too easy!

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http://www.garp.org/frm/overview/frm-facts/frm-statistics-and-charts.aspx

53.1% Part 1
61.6% Part 2


As a passer of Nov 2010 Part 1 (39%) Im a little disapointed the exam got easier. The main advantage this exam should have over the CFA is that its tougher to pass. And given the CFA pass rates released today thats clearly not the case.

 

[the luncheon meat]

what if the passing rate was lowered to 10%, and u are the 90% who failed ... would u feel better>

 

[Ragasy]

I bet there are many intelligent people here, with quantitative knowledge etc...
How can we be certain the exam was easier based on the pass rate?
Maybe people studied more due to the November 2010 situation?
I always remember my boss telling me: well, if we put all Nobel Prize Winners in a room what will happen? is Markovitz better than Black-Scholes-Merton?
Some people here are studying FRM, PRM, CFA, MBA, PhD, Post PhD etc...
The first ethical principle of the CFA standard is "not to claim superiority in front of an exam" that is why there is a Pass and a Fail situation.There is also a standard of knowledge to have.
Being an FRM "Plus Q1 all" and an FRM "middle" does that make someone superior to another one? : in the exam for sure ...in the job and in real life? in front of their colleagues, managers, executives, and explaining a risk sensitivity? some others models to assess risk? to make better stress tests than others?
Ethics and Wisdom or a bit of humility should be thinking about: especially for people that would have a designation in their name...
One can not always be the best or always in Q1 for everything and always...
Destiny can change thanks to people who wants to study and leanr more and contribute to the Financial Risk arena...this is above all and will contribute to a better Financial System...
my two cents though...

 

[[email protected]]

Higher pass rates cheapen the FRM certification...period.

 

[Ragasy]

the FRM certification by definition is an exam.
the Certification Board decides a clip level.
if you are not happy, write a claiming letter and ask them to transform the Exam in a competition where no matter you know and apply, you need to be number 1with a gold medal.
Sorry to say, I studied and calculated the efforts to pass.
this does not cheapen the certification exam at all. Nor guarantee superior intelligence.
I might be wrong if all risk analysts, and associates or head of risk, managers in your organization all are FRM certified.
In the last, you need to differentiate with something else. Maybe a PnL control? an amount of Portfolio controlled?
Certainly not that you passed FRM in a year that the pass rate was low.
My friend, talk to your manager, executive, CRO etc...They will help you to be less frustrated with a pass rate.

 

[AG]

@Ragasy, totally agree...

@tfarrell, from 1997-2008, FRM had only one part with an average pass rate close to 50%. From 2009 onwards the FRM 1 average pass rate has been close to 45%-50% and a part 2 pass rate 55-60% implying a compounded pass rate of 25-30%. Stay with me, the maths should be trivial to you.

Infact, I'd say, it has become more difficult to pass the entire program (a drop of pass rate from 50% to 25%).

Also, if you are familiar with something called stochasticity or randomness, you will get this clear: I can argue that the 39% Nov pass rate was low due to a below average sample of candidates, and this time the quality was better.

Looking forawrd to hear your side of the argument.

 

[Andrew Wedemier]

OMG I cant believe I am in the 53%!!!

 

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Better result simply means a combined effect of one or all the factors below:
(i) The student sample taking the exam this time were better qualified, prepared and of higher knowledge/skill level than the other batch with lower pass rate (as the papers /questions are standardised and are of a certain pre-decided difficulty level in all exams);
(ii) The overall awareness and standards of the FRM examination (standard /difficulty level,. approach, focus and style) is becoming more pervasive/ better understood by the aspirants and hence the preparation level of the candidates are increasing with time;
(iii) The importance of finance as a stream and risk management as a specialization has become more common and opted for subject at graduate and PG level in colleges and universities all over the world due to globalization and recent recession like events thereby increasing the knowledge , skill and perception level of aspiring candidates enrolled for FRM now than those of the candidates a few years back (this is also reflected in other results and enrollment patterns in colleges and universities offering finance related UG and PG programs and profile of (more) younger professionals entering these areas ). Due to this reason there is better coverage of RM in news as well as much more availability of RM literature in all areas pertaining to RM whether on line or otherwise.

So, the argument that FRM standard has been lowered or compromised in any way merely due to higher pass percentage is misplaced and unjustified. Times have changed, so has the standards and intellectual level of aspirants in any contemporary developing knowledge based areas than it was even a few years back - Risk Management is one of them..

 

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Or could it be that times have become so hard that I just could not afford to fail...

I find this discussion quite amusing!

 

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@tfarrel

Since your are so smart, and you want an exclusive association, why dont you sit the actuarial exams. It would suit you well, it takes a really long time to study for and pass 7-9 highly analytical exams.

 

[Romandinio]

I passed FRM level1 in May with result Q2, Q2, Q2, Q4. I did not answer nearly 15 questions (i did not even try to quess answer). I feel nervous during exam and didn;t sleep night before exam. Can GARP allow me to retake L1 exam? I think it is profitable for GARP to receive additional fee. I will pass this exam untill get all Q1.
Let us ask GARP to organize additional not obligatory very very chalenging exam (FRM Level 3) containing many difficult quant questions with pass rate 10%.

to .(JavaScript must be enabled to view this email address): what is most challenging actuarial exam? please, give me link to it.

 

[Andrew Wedemier]

@ sitarah

I found this discussion quite amusing as well.

@ tfarrell

Why do you believe that the "main advantage" this exam should have over the CFA is that it is tougher to pass?
GARP recently had a webinar that discussed how the FRM can build & advance your financial career, where one of the panelist (Michelle McCarthy) compared the FRM to other designations ( including the CFA). Michelle directly spoke to why she would hire a FRM holder over someone holding other designations, and I am sure she didn't mention anything about the pass rate.

 

[sl]

What is the flaw in the author's argument ?

You would find such an argument on the GMAT- CR section of the exam. hehe

The answer would be something like -

The pass percentages alone do not determine the relative 'cheapness' of the exams in both periods

 

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@ Romandinio

You can google Society of Actuaries and/or Casualty Society of Actuaries. The former is American and the latter is Canadian. The actuarial profession is a risk profession that includes risk management for all types of insurance and pension.

 

[Romandinio]

Suzanne Evans helped me to connect with GARP and they said to me that it is possible to retake frm exam. Failing subseqeunt exam will not affect on your frm status. If you passed first time your status pass will stay intact. You only can enhance your result to say on interview that you have all q1

 

[Andrew Wedemier]

Lol....Romandinio, are you trolling?