To help candidates prepare for the FRM Exam, GARP provides study materials, practice exams, and information on approved, third-party Exam preparation providers. The following official resources are available to help candidates prepare for both parts of the FRM Exam.
That’s the syllabus for FRM, All the best with you preparation to the exam! The FRM Learning Objectives document provides a comprehensive framework to guide candidates in their self-study preparation for the FRM Exam. It contains information and approximate weightings for each of the broad knowledge domains covered by the Exam, specific curriculum readings associated with each knowledge domain, and individual learning objectives for each reading. Since every FRM Exam question maps to at least one learning objective, the FRM Learning Objectives document is an important study resource and should be referred to regularly during exam preparation.
FRM Part 1 Syllabus:
FRM Syllabus covers the fundamental tools and techniques used in risk management and the theories that underlie their use. Specific areas of coverage and their weighting in the Syllabus for FRM Part 1 are:
1. Foundations of Risk Management
This area focuses on a candidate’s knowledge of foundational concepts of risk management and how risk management can add value to an organization and includes:
2. Quantitative Analysis
This area tests a candidate’s knowledge of basic probability and statistics, regression and time series analysis, and various quantitative techniques useful in risk management such as:
3. Financial Markets and Products
This area tests the candidate’s knowledge of financial products and the markets in which they trade, including:
4. Valuation and Risk Models
This area of FRM Pa will test a candidate’s knowledge of valuation techniques and risk models. This includes:
FRM Part 2 Syllabus:
Part II of the FRM Exam further applies the tools and techniques covered in Part I and delves more deeply into major sub-areas of risk management. Specific areas of coverage include:
1. Market Risk Management
This section tests a candidate’s knowledge of market risk measurement and management techniques. These include:
2. Credit Risk Management
This area focuses on a candidate’s understanding of credit risk management with some focus given to structured finance and credit products such as collateral debt obligations and credit derivatives. Knowledge of counter party risk is also tested, as well as default risk and methodologies used to measure it, such as Credit VaR.
3. Operational and Integrated Risk Management
This section of FRM Part 2 November syllabus addresses a candidate’s knowledge of two areas of increasing importance for many firms—operational risk management and integrated risk management. This includes:
4. Risk Management and Investment Risk Management
This area focuses on a candidate’s knowledge of risk management techniques applied to the investment management process. Topics such as portfolio construction and performance analysis are covered, as well as risk budgeting and portfolio and component VaR. Issues related to hedge funds and private equity investments are also covered.
5. Current Issues in Financial Markets
The candidate is expected to familiarize him/herself with the readings from this section, approaching each paper critically as a risk manager equipped with the knowledge from the other sections. This area of the Exam will test a candidate’s knowledge of the material covered by each paper. Recent topics have included: