Is the FRM Worth It?

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Күн бұрын

Пікірлер: 53

@randybrickson4290 10 ай бұрын

Hey, interesting take. While I agree that the FRM credential isn't particularly important when hiring quants, in that it doesn't sufficiently demonstrate quant bona fides (in, say, econometric analysis or programming), I think you overlook the signaling value of the credential. The pass rates on the FRM (both exams) are (I think) about 50%. At a minimum, having the FRM signals that an individual can process and absorb a fair amount of moderately technical information at relatively low cost (relative to other individuals). From a strict hiring perspective, the issue of whether the FRM material is applicable in a quant role is largely irrelevant. In the quant space, I think seeing a CFA on the resume is particularly valuable. In banking, the majority of quants don't have a formal finance background; quants tend to have advanced degrees in economics, statistics, physics, computer science, engineering, and so on. It's quite rare to see a genuine quant with, say, a finance/business/accounting degree. Like the FRM, the CFA exams have low pass rates. When I see a quant with demonstrable quant skills (via education & experience) alongside a CFA, the signaling value of the CFA is amplified beyond the value seen in the FRM. The CFA shows that an individual without formal training in finance/accounting/business was able to sit for three difficult (in the passing sense) exams outside her core domain of knowledge and establish competency (if not mastery). Again, it matters little that the CFA (or FRM) curriculum isn't particularly "quanty". What matters is that it signals an unusually high ability of an individual to understand a lot of information -- even when the information is well-removed from one's core competency. So the signaling value of these two credentials (the CFA in particular) is nontrivial, though the quant domain knowledge acquired in obtaining either credential arguably (and as you argue here) is trivial.

@arpansingh-xs4xw 10 ай бұрын

A video on CQF please

@projectverna1937 10 ай бұрын

THIS

@notintetesting 10 ай бұрын

Does anyone else think Dimitri baited us with the CQF mention?

@shukailu6731 9 ай бұрын

I can give you the short answer, don't.

@ron3252 Ай бұрын

Yes please 🙏

@Softdattel 3 ай бұрын

Thank you for discouraging me, I will now quit academia, math and finance and get a job at the local burger shop.

@itiscinnamoncafe Ай бұрын

😂😂😂

@depiction3435 7 ай бұрын

I hire and am a principle at a commodity focused hedge fund. 1) most quant work is cookie cutter bs especially when it comes to risk; you don't need a PhD to do it. 2) FRM is good for management, 3) Risk management is not that high paying and is usually for ppl who want to be part of the show, but don't have the ability to be part of the main cast.

@aaronliu5188 10 ай бұрын

Hello Dimitri again! In my final semester (Applied Math Major here) and just passed FRM level 2, I do agree it isn't very technical (I wish it was) but still completed it while doing my semester, felt a sense of achievement, do hope it will bring some value (even if little) value to my job hunt. I wish for a more in-depth dive into the technical details rather than just reading the materials, alot of times when studying for the FRM I honestly felt that I skipped over many of the math stuff, somehow knowing it will not be tested in the exams. I felt my math finance courses in undergrad were more interesting too haha. Cheers anyways! Good video.

@marcGP-qk9gm Ай бұрын

You skipped maths In FRm because you would know it would not be tested ? how come ? what do you mean please ? My son is in Ap maths also and prep FRm I am sure that would help him

@edgarmmassi3496 6 ай бұрын

FRM is not a quant oriented certification, its meant to equip learners with an understanding of risks for managerial purposes. Not all CEOs, for example, understand the details of quant but they still rely on work done by quants or inferences/judgements/managerial decisions made by risk managers. Point being everyone has a role to play in an organization and it all comes down to who/what you wanna be in the long run. Only take up FRM if you're interested in understanding risks, relationships and related concepts for managerial roles in business world.

@muntherrajab5080 7 ай бұрын

Then what complex quantitative certifications do you recommend taking into consideration the constant growth in market sophistication?

@demonlord71853 10 ай бұрын

Ahoy, An earnest sidenote : Take a rigorous course of Category theory before delving into pure maths for quantative finance. Category Theory (Compulsory) Abstract algebra (Groups + Rings + Fields) Real analysis Complex analysis Functional analysis (optional yet pivotal) Measure theory Stochastic differential equations. All aforementioned should be practiced rigourously.

@ajayreddy1729 10 ай бұрын

Dimitri , Please do video on Is CQF worth it?

@atulchanderdas7981 10 ай бұрын

You don't deserve it

@ajayreddy1729 10 ай бұрын

@@atulchanderdas7981 I don't deserve it why bro?

@shivamd23 10 ай бұрын

@@ajayreddy1729 please don't pay attention these trolls. CQF is worth it if you living in INDIA OR EUROPE.

@amandeepchopra3097 10 ай бұрын

Any comments on the actuarial exams conducted by the SOA along with quant finance masters?

@basselmtaweh3103 10 ай бұрын

Dimitri ...you should keep in mind that the Curriculum has changed a lot since you sat for the exam.

@basselmtaweh3103 10 ай бұрын

even if you take a masters degree in programming you still need to do a lot of research and a lot of self learning.

@junal27 10 ай бұрын

I applied for the FRM master's degree program back home and they did not accept me for not having an a background in economics:( regardless the official degree does not require for such). I was so much pissed off with the University that I decided studying the GARP FRM exams I and II as an alternative. I ended up buying used FRM preparation material in ebay and after a several nights of reading, I think passing the page was a good idea and put the FRM venure for another better life :)

@6Ligma 10 ай бұрын

Dimitri, which environment has the highest probability for me to meet actual quants? As you said, these FRM/CFA gatherings are basically focused on management. I was thinking of programming conferences(like Neurips), but that one is only once a year and costs 700$+ for a ticket.

@Geezzerzz 10 ай бұрын

Hey Dimitri, thanks for sharing your view on this. I somewhat agree. I think those certifications mostly serve as a signal to potential employers that you are willing to obtain the foundational knowledge to break into the field. I got my FRM title and currently studying for CFA Level 3, and honestly, the biggest value I see in them is the idea that I do not have to research the topics to study by myself. Other than that, you pretty much have general knowledge of the topic rather than become a specialist. But then again, the same could be said about any degree/certification. The one thing that I find interesting though is the continuing education portion of it. I feel like I'm forced to learn on a continuous basis. Anyways, just my two cents on that.

@mikhailbabushkinum 9 ай бұрын

Is the CFA worth it ? Given the amount of time commitment

@testadelcomputer1839 7 ай бұрын

I think the FRM is very good if you are willing to work in risk management of an Insurance Company. My Finance college friends work in insurance companies, one of them in Market Risk, the other in Actuarial Function and people go for it there.

@nirajpatil8805 6 ай бұрын

Hey can you tell me more about market risk profile as in what kind of work does a MR analyst does day to day. Would be helpful Thanx.

@testadelcomputer1839 6 ай бұрын

@@nirajpatil8805 mostly checking liquidity risk so checking market daily fluctuations

@Smartcapital1 10 ай бұрын

Hey Dimitri, MBA student in Europe with finance minor. Want to make the switch to quant like you but very difficult to be accepted in quantitative masters because of my backround, self teaching is not enough to convince them it seems. Any tips on how to be accepted in quant masters ? Thanks, great channel

@tanaykashyap2459 9 ай бұрын

Hey Dimitri! I am currently a 3rd year university student in a mathematical finance program and I was in a CS/Finance program before. I am currently working as a portfolio risk analyst and also as a quant research/dev for a quant team at my university (nothing big tho). I want to get into the quant space but I also know it's a tough field and want to keep my options open and use my core skills sets in other similar domains. What other career paths do you suggest and is their any certifications or master programs I should take after my undergrad?

@Welcome2TheUnknown 10 ай бұрын

is a Sustainability and Climate Risk (SCR) worth it?

@DimitriBianco 10 ай бұрын

Here are my thoughts on the SCR. kzbin.info/www/bejne/q36yaoWfbtiYkKcsi=70AJ5Q-65qIxlMRt

@SenhorMsandiFelipe 5 ай бұрын

Good day, i have always wanted to to FRM coming from a Mathematical/Financial Engineering background. Currently doing my masters degree in data science, not sure if its worth doing frm for me ? I have always been interested in risk but i dont get opportunities due to my lack of a risk specific qualification. IN my country you can have a phd in applied data science they wont look you direction unless you have a certification or online certificate in a programme that spells out the word risk.

@DimitriBianco 5 ай бұрын

In your case it could be helpful. I'm curious how the market risk section is applicable to other countries as exchanges operate differently around the world.

@Anna_win-hou 10 ай бұрын

Can we see the paper you published with GARP? I just passed level 2. I agree with what you said- in the op risk book they cover a little bit of model validation. I studied for it just because I liked the material covered.

@DimitriBianco 10 ай бұрын

This is the paper. papers.ssrn.com/sol3/papers.cfm?abstract_id=3653514

@bharatn7632 10 ай бұрын

Hey Dmitri why do you pretend to be a mathematician man? Aren't you a econ and finance grad from UMichigan? Number theory at work lol. Pretty sure you're middle office risk. Stop value judging work descriptions. Everything mathematical is going to be contained within the ML algorithms very soon. The only human differentiation is creativity and that comes from all range of skills whether FRM or math or science or physics. Also try and keep the misleading to a minimumany serious quant sees right through you. I feel bad for early starters and students who fall for snake oil salesmen.

@pocrakaa 4 ай бұрын

Finally somebody said it loud! He has no math degree and used to work in risk/validation.

@devez7 10 ай бұрын

Ηi Dimitri, do you think it is possible to have friendships at your work environment, or prople at work are just your colleagues?

@DimitriBianco 10 ай бұрын

Video podcast recorded for this. It should be publish this Tuesday.

@devez7 10 ай бұрын

@@DimitriBianco great thanks!

@khurramiqbal3452 9 ай бұрын

Can you please compare FRM with the CERA track of SOA.

@DimitriBianco 9 ай бұрын

No because I'm not an actuary. Most quant practitioners won't hire actuaries as their education is too focused on actuarial sciences.

@versace10 10 ай бұрын

What is the best way for a high schooler to get into quant finance as someone with mediocre programming and math skills, and little financial knowledge?

@DimitriBianco 10 ай бұрын

You need to get an undergrad and graduate degree. For a high schooler, this is the time to get into an average undergrad and work hard so you can get into a good graduate program.

@versace10 10 ай бұрын

@@DimitriBianco Im currently applied to colleges for an Applied math major would you recommend I keep on the straight math forward path or attempt to find a major or later a graduate program that directly involves finance?