Curious if you have plans to create study materials?

Discussion in 'About ERP' started by ebb, Oct 30, 2011.

  1. ebb

    ebb New Member

    I noticed that are almost zero study materials for ERP designation in North America. If Bionic Turtle gets on-board this, they can definitely capture a great deal of the test takers and give more test takers an incentive to take it and expand the market even further.

    Some questions regarding it. When was the designation started?

    Is there any value for this curriculum for people with the FRM already done?
  2. David Harper CFA FRM

    David Harper CFA FRM David Harper CFA FRM (test)

    Hi bunnyblaster,

    Thanks, I noticed the same thing about the ERP. I am currently speaking with a well-qualified professional to help develop ERP materials. One question that I keep asking, to which I have not received a really satisfying answer yet, is: how many ERP candidates are currently registering (what is the size of the market)? If you have any information on this, I would like to know ... I perceive the current size is smaller than it deserves. Re: helping to expand the market even further, I am not sure I agree (but thanks!) in the near-term, or just to say it differently: in my experience, it takes years to impact the market. I think we had impacts on the FRM, but it took three+ years before we even "turned the corner" ... in the meantime, it is costly to develop high-quality materials (the reward for the exam administrator is much greater for less input, in relative terms, than training providers like us). It is not hard for me to understand why there aren't many providers yet, it is a chicken-and-egg problem: you have to invest a lot with uncertainty with respect to the overall market and return.

    When was it started: I think ~ two years ago. And I know some of the people who were/are involved, the quality is very high in my opinion. The methodology to develop the curriculum, in my opinion, is sharper and more thoughtful than the FRM ... so (IMO), if it isn't getting traction, it surprises me because all of the elements are in place (e.g., hot topic, lack of competing designations)

    Re: value to people with FRM: related to the above, I don't have sufficient data points to opine a view, apologies, my hunch is not enough (e.g., the energy vertical has its own characteristics, without knowing the trend, I can't predict when it might become "resume saleable")

    Thanks for the question! David
  3. ebb

    ebb New Member

    Your response is much appreciated.

    I will probably wait until a third party develops an organized body of study materials before I consider taking it myself. I have friends that want to take it but I will patiently wait until someone (such as yourself) develops an organized body of study materials.

    But I do believe you have the most reputable and active forum for FRM test takers.
  4. David Harper CFA FRM

    David Harper CFA FRM David Harper CFA FRM (test)

    Thanks i appreciate that, yea we do have the most active forum, but candidly, i think that's mostly because i service it pretty much every day (few of my competitors want to do that, and sometimes i question it myself :) ) David
  5. kwadwo69

    kwadwo69 New Member

    Same sentiments here. I am seriously considering taking the ERP in May, probably before completing the FRM and I know of at least two others who intend to register for the exam in Ghana, W. Africa next year (May or November). The absence of study material such as the Bionic Turtle provides for the FRM exams is a bit disconcerting.
  6. Meredius

    Meredius New Member

    FYI, when I took the level 1 FRM in Montreal a few weeks ago (nov 2011), they did ask who was taking the ERP, and out of the 50 people sitting in, only 1 person raised their hand.

  7. kwadwo69

    kwadwo69 New Member

    @Meredius: Rather the opposite in Accra, Ghana. Of the 18 or so candidates who too the morning exam, only 3 were FRM I candidates; the rest were ERP candidates. They are probably the reason why Accra was finally made an exam center by GARP. However, I see FRM growing really fast here in the coming months. All of us (FRM) use and share Bionic Turtle notes!
  8. Suzanne Evans

    Suzanne Evans Administrator

    Hi. I just wanted to let you know that we are beginning to post ERP Practice Questions which are protected for our paid members only. You can find the first practice question here.

  9. kwadwo69

    kwadwo69 New Member

    That's very comforting; thanks Suzanne.
  10. jeff-1984

    jeff-1984 Member

    Hello David and Suzanne

    have you released ERP study materials or only practice questions ?
  11. Suzanne Evans

    Suzanne Evans Administrator

    Hi Jeff,

    As FRM is very demanding and consumes most of our time, we do not have ERP Study Materials.

  12. Aleksander Hansen

    Aleksander Hansen Well-Known Member

    Two of my colleagues took the ERP, on in Nov 11, the other in May 2012 (I chose to take the FRM instead and sat P1 in May 2012. They both work in quant risk roles, and energy-specific risk is one area they focus on.

    The ERP material contains a lot of readings very specific to the energy market. If you do not perform any risk analysis specific to the energy market I see no reason to take it. Both of my colleagues found the exam to be easy and scored in Q1 on the three parts. There is some overlap with FRM in the quantitative section, but it is a "quantitative light version" compared to FRM, and many topics are not covered, e.g. Fixed income is not part of the curriculum at all.

    My colleague who sat the May exam wil take FRM P1 in May 2013, however, I will not take the ERP. Since it is geared towards energy/commodities and energy companies are not doing that well now, don't expect to see a big growth in the number of people taking the exam any time soon.

    I think it would be safe to say that the FRM is about risk management, while the ERP is really more about learning about energy markets, how they work, the logistics of it all and so forth. I would maybe call it Energy Product Professional or Energy Market professional, rather than Energy Risk Professional.

    The readings are a mixed bag. Some of it will put you to sleep while other parts are more interesting. The authors are also mixed, you have some mediocre authors, but then also some great ones like Dragana Pilipovic.
    * [I am slightly biased as I know her and work with her on such as the vol surface and the valuation of certain energy options on a semi-regular basis. We do not work for the same company though].

    Few exercises as mentioned. My colleagues used exercises (where relevant) from FRM material such as Jorion and Hull + the FRM practice exams to prepare. They both skipped part of the readings that were less relevant. My advice, if you are going to take it, is to only spend a few days on current issues as it only makes up 10% of the total exam score.

    Just my thoughts. So would I sit it? No. Most of the material is too boring. I would take the FRM first, and CFA following that before doing the ERP, and even then, only if I was forced to. Depends on your needs, interests and focus though.
    • Like Like x 1
  13. jeff-1984

    jeff-1984 Member

    Aleks thanks for this thorough explanation mate. Actually i was asking about the material for a friend of mine who works in this domain and was thinking about taking the ERP.

    As for me, well i am trying to motivate myself to re-start studying for FRM P1 again :(

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