FRR Preparation (Financial Risk and Regulation)

Understanding Duration Gap Analysis from the FRR Perspective In the world of banking and financial management, managing interest rate risk is crucial. One of the most important tools used by banks for this purpose is the Duration Gap (DG) Analysis . This analysis helps banks understand how sensitive their assets and liabilities are to changes in market interest rates and how those changes impact both their Net Interest Income (NII) and the Economic Value of Equity (EVE) . ✅ What Is Duration Gap Analysis? Duration Gap measures the difference between the average duration of a bank’s assets and liabilities. Duration of Assets (DA) refers to how long it takes for the bank to recover its invested funds through interest payments and principal repayments. Duration of Liabilities (DL) refers to the time period over which the bank pays interest and repays its borrowed funds. The formula is simple:    Duration Gap (DG) = Duration of Assets (DA) − Duration of Liabilities (DL) A p...

  Hi everyone, today I want to share my journey of preparing for the GARP FRR exam—that’s Financial Risk and Regulation. I began my preparation in February 2025, and honestly, I was surprised to see how little dedicated material was available. Unlike FRM, which has plenty of resources, FRR mostly relies on official GARP content. Even AI tools and question banks are usually built on FRM data, which makes preparing for FRR more challenging. Here’s what I noticed: FRM questions are more logical and concept-driven, while FRR questions focus heavily on facts, figures, and numbers. The exam often gives options that look very similar, which can be tricky. In my exam, I saw about 8–9 numerical questions. If you’re not strong in math, don’t worry—you can still manage by focusing on formulas and practicing straightforward to medium-level problems. During my preparation, I solved around 4,000 MCQs. Later, I realized most of them were FRM-based, but they still helped me strengthen my concept. ...