Professional Financial Modeler

Certification for Financial Modeling Professionals
Professional Financial Modeler

Certification for Financial Modeling Professionals

FAQ - Professional Financial Modeler

FAQ

There are adhoc functions held primarily by PFM active Designation Holders based on professional contribution through appointment by IFMI Chairman or Head of Berau.

  1. Contributors

    Highly knowledgeable individuals with the willingness to research and explore new methodologies and techniques and develop them into study format.

  2. Trainers

    Eligible trainers are appointed by CERT Bureau based on recommendation from Licensed Training Provider to deliver On Site (offline) training program in specific country(ies). All trainers must be approved by IFMI.

  3. Examiners/Graders

    Persons assigned with tasks of grading practice examination results.

  4. Ethical Committee

    Consists of Active Designation Holders with interest in compliance and professional integrity. Main task is to investigate and conduct judgment process on possible ethical issue and violation to IFMI standards.

PFM Curriculum is based on Body of Knowledge (BOK) which is divided into 7 main Sections, namely:

  1. Accounts and Reports Used for Financial Model
  2. Forecasting Techniques and Assumptions
  3. Financial Projection
  4. Valuation Methodologies
  5. Financial Model Sustainability and Risk Analysis
  6. Project Financial Model
  7. Credit Analysis Based on Financial Model

The BOK is further organized into sub topics called Detailed Outline Subtopic (DOS). Each DOS covers specific subtopic which is then expounded into PFM Program Module. The number of DOS keeps on expanding. DOS is the basis for content in the module and what participant can expect in PFM Exam.

PFM Curriculum is standardized and updated from time to time. Class delivery by Licensed Training Providers may not deviate from the curriculum.

Training providers may develop modules, presentation materials (slides), spreadsheet for their own program. IFMI is not responsible to the accuracy of such materials.

PFM Program is international designation, meaning the holders may use the Designation in any country without restriction. IFMI currently undergoes internationally recognized accreditation process based on ISO 17024 to ensure that the whole process conducted is in accordance with global standard set for certification body.

When you already obtain PFM Designation and remain active Designeted Holder, your basic profile along with your designation is searchable in PFM Website in Designation Holder Search section. That means anyone can verify the validity of your designation and understand that you already have the competence as required in order to attain the designation.

The structure of PFM certification program and process is developed based on ISO 17024 to ensure the adherence with global standard for professional education. The adherence to internationally accepted standard is designed to ensure the impartiality and fairness of certification process. That causes your PFM Designation to become a trustful hallmark of your personal competence in the eyes of clients and employers. Such trust will enhance your personal equity and help propel your career. To enhance the credibility further, IFMI is currently preparing for accreditation process by reputable accreditation institution.

In order to adhere to ISO 17024 standard, designation holder must conduct recertification periodically to keep the his/her knowledge update. In PFM, the process is called Continuous Competency Initiative which will be conducted every 3 years. Since the infrastructure is still being developed, CCI has not been implemented (still on grace period). Once the system is fully developed, the CCI will be implemented. But in PFM Program, CCI is being designed to require minimal effort with cost as low as possible with options such as watching recommended webinars.

No. PFM Examination only tests your knowledge about pure financial modeling knowledge without requiring knowledge on the use of programming languages commonly used in models or understanding certain software programs other then spreadsheet programs. Why? Because financial model and analysis is already a complex subject to master. Learning programming language is another subject which is not easy as well and there are currently many different programing languages. The language used also keeps on changing. Devoting learning time on programming languages will easily divert attention from the the more important core curriculum. If a Candidate needs programming knowledge, it is suggested that Candidate takes separate training class dedicated only to learn about programming languages.

The structure of PFM certification program and process is developed based on ISO 17024 to ensure the adherence with global standard for professional education. The adherence to internationally accepted standard is designed to ensure the impartiality and fairness of certification process. That causes your PFM Designation to become a trustful hallmark of your personal competence in the eyes of clients and employers. Such trust will enhance your personal equity and help propel your career. To enhance the credibility further, IFMI is currently in the process of obtaining global accreditation.

In many jurisdictions, the establishment of professional certification program must ensure the adherence to local occupation standard in order to obtain local government recognition or permission. This may cause the program to become irrelevant in other countries. To avoid government intervention, IFMI is structured as web based global organization. To ensure legality of the program, the body is legalized in certain jurisdictions.

In order to attend PFM Examination, Candidate needs to have basic understanding about accounting and finance and have good familiarity with Microsoft Excel, Open Office or similar software. Candidate needs to study about PFM Curriculum in order to pass. Candidate is NOT required to have education or professional experience in financial modeling or finance. Candidate need to have Bachelor degree or in final years of taking undergraduate program. Candidate who does not have bachelor degree or not taking undergraduate program may be eligible to obtain PDM Designation as long as the Candidate minimally has 2 years of working experience.

IFMI is a global organization. In each country or region where PFM program is available onsite, IFMI appoints Licensed Training Providers which can deliver onsite class and prepare the venue and environment needed for the Examination. All Examination problems, grading process and certification process are directly managed by IFMI.

PFM is not developed based on occupation standard set forth by government in a single jurisdiction which may undermine the ability of its holders to access global market. But instead, PFM curriculum is developed based on the understanding about the needs of financial modelers in common to gain the knowledge which enables them to stay ahead of market. This ensures worldwide recognition to your PFM designation.

If you fail in one of 2 modules in the exam, you need to retake exam ONLY on the module that you fail. There is no limit on how many times you can retake PFM Examination.

Commonly, the grading process on a model prepared based on spreadsheet requires a lot of judgment on the grader side as no one develops models which are exactly the same. Different graders will look at the same model on different perception, causing substantial bias which undermines the credibility of the examination itself. To avoid that, grading process in PFM Program employs procedure to ensure fair grades where each candidate receives score he/she deserves. The computer practice examination is standardized in such a way that will greatly minimize discrepancies between graders. The use of multiple human graders also minimizes the impact from personal subjectivity. If a Candidate has reason to believe that the grading process is conducted unfairly, he/she can simply request for appeal or file a complaint which will be acted upon within a certain time limit.

Yes, you can. However, PFM Examination tests your capability and understanding on many materials which are novelties and learning them can be difficult. It is advisable that you take PFM Preparation Program conducted by Licensed Training Provider. To See the list of Licensed Training Provider and the service they can provide click here

In order to adhere to ISO 17024 standard, designation holder must conduct recertification periodically to keep the his/her knowledge update. In PFM, the process is called Continuous Competency Initiative (CCI) which will be conducted every 3 years. Since the infrastructure is still being developed, CCI has not been implemented (still on grace period). Once the system is fully developed, the CCI will be implemented. But in PFM Program, CCI is being designed to require minimal effort with cost as low as possible with options such as watching recommended webinars.

You can contact IFMI through info@professionalfinancialmodeler.org and IFMI will direct the Licensed Training Provider to arrange class on demand if participant quota suffices. Class will mostly be in English and exam will also be in English and some basic translation on your local language may be available as it is a standard by IFMI to provide exam in bilingual format in non English speaking country.

IFMI does not conduct preparation classes in the form of clasroom or online learning. However, a Licensed Training Provider may only mention its program as PFM Preparation Program if the program is bundled with PFM Examination. Contact your Licensed Training Provider to obtain the detail of the program they provide to you. To see the list of Licensed Training Provider and the service they can provide click here

In each country, IFMI sets the examination pricing. The pricing may be different in each country by considering many factors including the cost of running examination in that country, local taxation and the operational costs involved.

Yes, you can. IFMI does appoint Licensed Training Providers on non exclusive basis for a country or region. There are requirements to be met. Contact info@professionalfinancialmodeler.org for more information.

Yes, PFM Designation holder will be required to recertify every 3 years. Certain recertification administration fee is payable every time you recertify to cover the cost of ensuring your compliance with PFM Certification Standard.

Financial Model, Financial Analysis and understanding about accounting are required skills that have to be mastered for individuals seeking career in finance, investment and risk management field. They are commonly important job functions required in many highest paying jobs in financial sector. Understanding about how to develop sound models and how to analyze them is a must for all professionals dealing with strategic decision making and analysis.

One Licensed Training Provider has developed online learning for PFM Program which is enabled to certain Licensed Training Providers. You can contact your Licensed Training Providers to know whether you can obtain the access to the online learning platform.

Copyright International Financial Modeling Institute © 2018. All Right Reserved.
Copyright International Financial Modeling Institute © 2018. All Right Reserved.