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# FAQ Before ExamShould I register for the Part 1 or Part 2 exam now ?

#### ag0511

##### Member
Often there is a dilemma about making a decision regarding registration for part 1 or part 2 examination (to a lesser degree) before a particular registration deadline or deciding the right time for registration,considering preparation level,availability of preparation time etc for making a successful exam attempt.The returning candidates, who either did not sat for a particular exam after registration or people who could not clear in most cases have this dilemma.Since there are tradeoffs here, fine balancing is required to choose among the available option and scenarios such as escalating exam fee,opportunity cost in terms of missing chance of clearing the exams early and possibility of losing the exam registration fee in case of an unsuccessful attempt.Candidates - Past or present can share their experience or provide feedback to overcome this dilemma.And share their thought process about the factors which were considered to decide about registering for a particular exam or the issues which stopped them for registration.

#### ag0511

##### Member
The deadline for Nov 2018 exam is July 31,2018 and there is roughly 10 days left for early registration deadline.Have people already registered for P1 and P2 examination or they haven't registered yet and evaluating different options? Any suggestion or feedback, particularly for making a decision about early registration ? I have some suggestions and views,which I shall post later.

#### ag0511

##### Member
Will like to do an analogy in parlance of topics such as fixed income, options, credit rating etc to share my views. I believe that going for early registration for an FRM exam is like investing in a bond with an embedded put option(investment in bond because committing funds or investing for education and improving career prospects definitely has low risk and can earn stable returns similar to bond). The features of put option are enabled by paying an “Option premium” of either 25 $or 150$ (deferral fee),depending upon whether one considers this as additional cost with relation to standard registration cost applicable after early registration deadline or additional cost for next year’s early registration (assuming no increments in the exam fee). This option can be exercised till Oct 15 and if exercised it has a minimum payoff (of 350 USD) in terms of assured registration for the next exam. The associated risk of investing in a bond is generally gauged by credit rating of the instrument and in this case for a change will depend upon investor’s (candidate’s) profile. So with an underlying assumption that the candidate has required aptitude to clear the exams, the instrument’s rating will be as follows for the following categories of investors (candidates)

AAA – For those returning candidate ,who can devote required time in run up to exam and have already covered about 70-80% syllabus in previous attempt, missed narrowly say two/three 2’s and one/two 3’s .Fresh candidates,who have done similar coverage, rating would be a notch lower say AA+

AA – For those fresh candidates, who can devote time and have covered less than 70 % but more than 45-50 % syllabus at this stage. And also for those returning candidates, who were unsuccessful due to their under performance in at the most two (3's or 4's) subjects in their previous attempt(s).

A – For those fresh candidates,who can devote time and have covered less than say 40 % but more than 20 -25 % of syllabus till now thus covering topics as per a 16-18 week study schedule. And also those returning candidates who underperformed in more than two areas but not by much say three 3’s or 4-5 three’s.

BBB – For those fresh candidates (related to P1 OR P2) or returning P2 candidate who are behind study schedule or have not started at all, but still have inherent capability to step up and more than meet up the weekly coverage requirement from now until the examination and can study regularly.

The instrument can have (+) or (-) sign for a candidate in comparison to other candidates within a category depending upon candidate’s relative preparation level ,work experience,other professional degrees .However any change in their circumstances due to which they can't study or maintain same momentum can be interpreted as downgrade or ratings watch . From the exam registration perspective,Since the ratings above are rated as investment grade and entail lesser risk, the candidates in a similar situation described above can get themselves registered.

BB or less – Referred to as non investment grade rating, not necessarily junk or default rating, but speculative nonetheless and has possibility of higher payoff (such as early completion) with higher risk (not making an successful attempt). For instance,those Candidates who are starting now and appearing in both the exams together. The mechanism of rating one’s exam prospects to be rated in this category (whether BB, B, CCC, CC or D) will depend upon Candidate’s aptitude, prior experience -work ,other professional degree and time devoted for preparation.

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