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FRM Level 1 vs Level 2 November 2025 Window: Difficulty Jump and What to Expect

FRM Level 1 vs Level 2 November 2025 Window: Difficulty Jump and What to Expect
FRM Level 1 vs Level 2 November 2025 Window: Difficulty Jump and What to Expect


First things first: GARP officially labels the exams FRM Part I and FRM Part II (many people still say Level 1/Level 2). The November 2025 window is a popular sitting for both parts—and the step up between them is real. Here’s a clear, professional guide to the difficulty jump, how the exams differ, and how to prepare specifically for November.


The big picture: how Part II is different

FRM Level 1 vs Level 2 November 2025 Window

At a high level, Part I tests your toolkit; Part II tests your judgment using that toolkit in realistic, multi-faceted scenarios. The transition is less about “harder math” and more about integrating concepts across risk types and defending the most appropriate approach under stated constraints.


Snapshot comparison

Dimension

FRM Part I (Level 1)

FRM Part II (Level 2)

Primary aim

Build the core risk toolkit (market, credit, quantitative methods, foundations)

Apply and synthesize tools in case-based contexts (governance, model risk, liquidity/treasury, current issues)

Format

100 MCQ in 4 hours (CBT)

80 MCQ in 4 hours (CBT)

Time pressure (avg.)

~2.4 minutes/question

~3.0 minutes/question

Question feel

Calculational, concept checks, straight applications

Vignette-style judgment, method selection, multi-step reasoning

What’s tested

VaR/ES basics, distributions, duration/convexity, EL = PD×LGD×EAD, etc.

Backtesting & stress design, liquidity metrics in policy context, counterparty credit (CVA), op risk & resiliency, model governance

What upgrades

Calculator mastery, formula fluency, clean setups

Narrative reading, selecting the right method, articulating why it fits the case

What the “difficulty jump” really means


  1. From formula recall to method choiceIn Part I you might calculate a delta-normal VaR. In Part II you’ll decide which VaR/ES approach is appropriate, defend assumptions (distribution, horizon, liquidity), and interpret backtesting outcomes.

  2. From single-topic math to cross-topic integrationCases blend market + liquidity (e.g., horizon adjustments), credit + collateral (counterparty risk with CSA terms), or portfolio + derivatives (overlay hedges). You must link the moving parts.

  3. From correctness to defensibilityMultiple answers may look plausible. The best choice is the one consistent with the case’s constraints—policy limits, data availability, regulatory expectations, cost/benefit trade-offs.

  4. From exhibit reading to insight extractionTables and short memos hide clues: tenor mismatches, runoff rates, recovery assumptions, data quality flags. The edge is organizing the data fast and ignoring distractors.


What to expect in November 2025 (practical notes)


  • Booking strategy: Seats vary by city and day in the November window. Lock your preferred slot early and plan separate appointments if you’re attempting both parts in the same administration.

  • Pacing reality: The on-screen clock rules. Part II’s longer average per question can feel comfortable—but only if you avoid spending 6–8 minutes on a single heavy calc.

  • Allowed materials & calculators: Stay within the official calculator list and test-center rules; rehearse with your exact device well ahead of time.

  • Breaks: You may step away, but the exam clock does not stop. Budget your hydration and timing accordingly.

(Policies can change—always follow the latest GARP instructions on your admission documents.)


Bridging the gap: how to prepare for the jump


1) Adopt a repeatable case method

Use this five-step loop on every practice vignette so it’s automatic on exam day:

  1. Frame: Who is deciding, under which constraints (capital, liquidity, policy)?

  2. Tag: Mark each paragraph/exhibit with the concept (e.g., CCR–EPE/PFE, LCR, backtesting exceptions).

  3. Select: Pick the simplest valid method that matches assumptions/data.

  4. Compute/Argue: Do the math or make the policy call—state the main assumption.

  5. Sanity-check: Units, sign, order-of-magnitude; if it surprises you, re-check inputs.


2) Build domain “trigger lists” (Part II focus areas)

  • Market risk: VaR vs ES selection, liquidity horizon adjustments, backtesting (exceptions, Kupiec-style logic), scenario/stress design, model risk governance.

  • Credit & counterparty: EL/UL mechanics, CVA approximation (discounted expected exposure × default), migration matrices, concentration/granularity, collateral effects and wrong-way risk.

  • Liquidity/treasury: LCR/NSFR intuition, HQLA levels, runoff rates, contingency funding, FTP basics.

  • Operational risk & resiliency: LDA vs scenario analysis, dependence, KRIs, third-party/cyber, business continuity.

  • Investment & portfolio links: Active risk/IR, factor exposure interpretation, overlay hedging with futures/swaps.

Write 3–5 “triggers” per domain (e.g., “dividends change forward price,” “horizon matters for VaR scaling”) so you catch them instantly in stems.


3) Practice that mirrors the exam

  • Train with item sets, not singletons. Build stamina and learn to read exhibits with intent.

  • Time every set. Reading + tagging should take 20–30% of your set time; it saves minutes later.

  • Review > redo. Spend 2–3× the set time on the post-mortem. Categorize misses: Concept, Process, or Careless. Write a one-line fix and a trigger to avoid a repeat.

  • Second rep within 48 hours. Redo a cousin problem so the correction sticks.


4) Pacing rules to protect your score

  • 90-second rule: If stalled, eliminate, mark, move. Come back with fresh eyes.

  • Bank easy points first: Definitions, quick calcs, and policy “best action” items go early.

  • End with a sweep: Reserve 5–10 minutes to confirm units/signs and ensure every response is submitted.


Sample 8-week plan for the November window


  • Weeks 1–2: Market risk & backtesting; 6–8 timed sets.

  • Weeks 3–4: Credit/CCR (CVA), migration, concentration; 6–8 sets.

  • Week 5: Liquidity/treasury + funds transfer pricing; 4–6 sets.

  • Week 6: Operational risk & resiliency; 4–6 sets.

  • Week 7: Full Mock #1 → deep review → 3 targeted repair sets.

  • Week 8: Full Mock #2 (early), Full Mock #3 (late), light mixed drills; sleep and logistics.

Track weekly KPIs: accuracy by domain, average time per question, and top three recurring error themes (aim to shrink them week over week).



Bottom line FRM Level 1 vs Level 2 November 2025 Window

  • Part I → Part II is a jump in synthesis, not just difficulty. You’ll be rewarded for reading with intent, picking the right method, and justifying your choice in context.

  • November success is operational. Lock logistics early, practice under timed case conditions, and arrive with a repeatable method.

  • Think like a risk professional. Show you can connect models to decisions, under constraints, with clean mechanics and defensible judgment.

Do that, and the “difficulty jump” becomes a competitive advantage—not a surprise.







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