advice regarding PRM

achilles · 8/18/10

hi all

I have recently completed my engineering from a reputed collg in India and currently a software engineer at TCS. My query is regarding a cartification PRM -IA (Profesional risk Manager). I have a little less scores in Maths subjecs in my engineering and am confused whther to take GRE Subject Maths or PRM. I looked at PRM exams and found 2 out of 4 exams to be particularly pertinent to FE - FinMath, Options- Derivatives .
So ,my query: is PRM recognized in US universities as much as FRM/CFA ?... PRM is nowhere known here in India. or should i just stick with GRE Maths subject test.
Moreover, I got my profile evaluated and was advised to get some knowledge in financial field ... since am an engr from IT background with limited financial knowledge. (1-2 certifications, 1-2 internships as a sub broker at a local firm , part time tech writer )

any help would be highly appreciated
Thanks

Connor · 8/18/10

Depends what you want to do. Do you want to go into risk management? Or are you only interested in boosting your MFE application?

I think CFA is probably the most recognized out of the certifications you listed, but whether it will help your application is debatable.

How did you do on the GRE general test?

If you had low scores in your math courses for engineering, you will probably have trouble with the GRE Math test. I haven't taken it myself but I hear it is extremely difficult to do well on.

achilles · 8/18/10

Connor said:
Depends what you want to do. Do you want to go into risk management? Or are you only interested in boosting your MFE application?

I think CFA is probably the most recognized out of the certifications you listed, but whether it will help your application is debatable.

How did you do on the GRE general test?

If you had low scores in your math courses for engineering, you will probably have trouble with the GRE Math test. I haven't taken it myself but I hear it is extremely difficult to do well on.

hi connor ... thnx alot for the reply

for the time being am only concerned with boosting my profile ...
ya i knw CFA is most recognized but Sep on i will be having my full time job along with applications and some prep for MBA related exams as a backup in India. So , I figured I wont be able to give much time to CFA prep and would flunk. so, i talked to a few ppl who suggested PRM which overlaps with FE courses. But my only worry is if PRM is knwon as a reputed certification in these schools .
I am yet to take my GRE General , not far actually ... another 20 days or so .
Ya, I had low scores in Maths in engg which I attribute to less time devoted ... not really weak at Maths ... I think I can do better with prep in GRE Maths subject test. I saw the paper and yeah it does look tough ... but doing more than avg shud suffice as we aren't expected to compete with phd level candidates, acc to me

MSFHQ · 8/18/10

Didn't the PRM and FRM split a while back over a disagreement? As mentioned before I think the CFA is the gold standard. With that said, if you are dead set on getting another designation I would go with the FRM. I know people in trading with it and I think it carries more weight then the PRM at this point.

Connor · 8/18/10

Plenty of people work full time and prepare for the CFA. I know a guy that woke up every morning for 2 hours of CFA prep before going to work all day and then go to university for night classes.

An issue with the GRE math test is that no one really knows how well you have to do. Unless some one else has seen/heard something, I have never seen it mentioned exactly what is considered good. I have seen people mention 75-80+ percent though, but nothing definitive.

First thing is you need to get your GRE general results back because 800Q score will be needed to get into top programs in the US.

Dragunov · 8/18/10

Hi Achilles,

If you're an engineer like me, why not take the energy risk professional (ERP) cert instead? It's offered by GARP though.

achilles · 8/19/10

@ Connor : yeah surely there are plenty working full time who pass CFA (my bro is one :P) but I knw abt my time constraints and have talked to a few ppl who have discouraged me frm taking it under my circumstances. $1100 = 50,000 INR is a huge investment which i cant risk currently. It would be helpful if u cud tel me if PRM is recognized in these schools so I cud make a choice b/w PRM and GRE Math.

@ Anthony: thnx for the reply. I dont really knw much but PRM was started in 2002 ... no idea if it germinated frm FRM. Also, isnt FRM tougher than CFA ? since it is divided into 2 exams while CFA into 3. as i mentioned above , my problem is time constraints for prep which is why am looking for prm.

@ Dragunov : i looked at ERP and its details , isnt it for someone interested in the energy sector ? I actually did my engg from IT .. . i think ERP wont be relevant to me. which field did u do ur engg in btw ?

Connor · 8/19/10

These certifications are good to have especially when it comes to looking for a job but I don't think they will provide the improvement to your application that you are looking for.

MSFHQ · 8/19/10

I won't say the FRM is easy, but it is not tougher than the CFA. Both are respected, but I still think the CFA is the standard bearer.

achilles · 8/20/10

Anthony DeAngelis said:
I won't say the FRM is easy, but it is not tougher than the CFA. Both are respected, but I still think the CFA is the standard bearer.

Connor said:
These certifications are good to have especially when it comes to looking for a job but I don't think they will provide the improvement to your application that you are looking for.

thnx for the replies

i think PRM isnt a very recgonized certification .. any other pointers to improve my profile ? cant really prepare for CFA/FRM at this moment .

Andy Nguyen · 8/20/10

Just want to let you know that FRM/PRM is not going to boost your profile much. In fact, majority of people admitted into top programs don't have any of those certificates.

achilles · 8/21/10

Andy Nguyen said:
Just want to let you know that FRM/PRM is not going to boost your profile much. In fact, majority of people admitted into top programs don't have any of those certificates.

thnx andy ... that was a relief

. dont the tier 1 programs look for financial certifications ?
Considering the current economic conditions of US and fears of a double dip recession , I dont wana take up MFE in tier 2 programs being an international student.

Also, I have limited financial knowledge owing to my IT background , so any advices to overcome these foibles ?

Connor · 8/21/10

Self-study. Read some finance books and implement some of the models then talk about it in your application.

Andy Nguyen · 8/21/10

achilles said:
thnx andy ... that was a relief . dont the tier 1 programs look for financial certifications?

I'm aware of UCB as the only program that recommends/requires prospective applicants to take CFA L1.

Ken Abbott · 8/21/10

FRM/PRM

I've written and edited questions for the FRM for several years. I have also been a reviewer of the required reading list. The questions are geared to actual practice, not theoretical backdrop.

I've never looked at the FRM as a necessary qualification for employment, but I have recommended that people take it after starting. Why? Because, like the CFA, it's a sure-fire means to making sure you're exposed to a large body of knowledge. Besides the usual statistical and B/S stuff, it covers things like the regulatory framework and core credit analytics skills you simply won't get in grad school. And yes, you will need to know those things even if you don't go work for a bank because it's very likely you'll trade with banks.

achilles · 8/21/10

Ken Abbott said:
I've written and edited questions for the FRM for several years. I have also been a reviewer of the required reading list. The questions are geared to actual practice, not theoretical backdrop.

I've never looked at the FRM as a necessary qualification for employment, but I have recommended that people take it after starting. Why? Because, like the CFA, it's a sure-fire means to making sure you're exposed to a large body of knowledge. Besides the usual statistical and B/S stuff, it covers things like the regulatory framework and core credit analytics skills you simply won't get in grad school. And yes, you will need to know those things even if you don't go work for a bank because it's very likely you'll trade with banks.

thnx alot Mr. Ken for the reply . I figure frm ur reply that FRM /CFA are certifications necessary for acquiring practical knowledge and one doesn't necessarily require them while gaining admission to a FE course. I feel, currently self study wud be the best way to boost my profile .

Andy Nguyen said:
I'm aware of UCB as the only program that recommends/requires prospective applicants to take CFA L1.

Connor said:
Self-study. Read some finance books and implement some of the models then talk about it in your application.

@ andy, connor : I am still curious abt what makes up for the lack of one's financial knowledge ... wont self study be a highly subjective criteria to judge an application ?

Connor · 8/22/10

In my opinion, MFE admission boards aren't looking for finance experts. They want people with a strong background in math and computer science with an interest in finance. Self-study shows this interest.

achilles · 8/23/10

Connor said:
In my opinion, MFE admission boards aren't looking for finance experts. They want people with a strong background in math and computer science with an interest in finance. Self-study shows this interest.

okk .. that suits my profile too .... am just a lil skeptical since the profiles of ppl entering tier 1 programs contains all the ingredients. I even lack relevant work ex. I am currently placed in an IT co.

Connor · 8/23/10

achilles said:
okk .. that suits my profile too .... am just a lil skeptical since the profiles of ppl entering tier 1 programs contains all the ingredients. I even lack relevant work ex. I am currently placed in an IT co.

Maybe there is a perfect recipe out there for a MFE application, but realistically most people aren't going to fit it unless they are lucky or happened to design their college years around that recipe. At some point you have to just take what you have and do what you can.

You don't have a finance job, and time constraints prevent you from taking the CFA L1. You can't do much about this so don't worry about it and focus on things you can change.

achilles · 8/23/10

Connor said:
Maybe there is a perfect recipe out there for a MFE application, but realistically most people aren't going to fit it unless they are lucky or happened to design their college years around that recipe. At some point you have to just take what you have and do what you can.

You don't have a finance job, and time constraints prevent you from taking the CFA L1. You can't do much about this so don't worry about it and focus on things you can change.

thnx for the kind words ... will keep dat in mind

advice regarding PRM

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