{"id":696,"date":"2020-09-06T04:50:24","date_gmt":"2020-09-06T04:50:24","guid":{"rendered":"https:\/\/www.talksomuch.com\/?p=696"},"modified":"2020-09-06T04:50:24","modified_gmt":"2020-09-06T04:50:24","slug":"frm-part-1-syllabus","status":"publish","type":"post","link":"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/","title":{"rendered":"FRM Part 1 syllabus"},"content":{"rendered":"<p>Shut your doors, drop the drapes on your windows and don\u2019t bother looking at the clock because it\u2019s always the same time, \u201cFRM preparation time\u201d<\/p>\n<p>The FRM syllabus is broken down into syllabus for FRM Part 1 and syllabus for FRM Part 2.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FRM_Syllabus_breakdown\"><\/span>FRM Syllabus breakdown:<span class=\"ez-toc-section-end\"><\/span><\/h3><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_50 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-64a3a6a4b1816\" aria-hidden=\"true\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-64a3a6a4b1816\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#FRM_Syllabus_breakdown\" title=\"FRM Syllabus breakdown:\">FRM Syllabus breakdown:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#FRM_Part_1_Syllabus\" title=\"FRM Part 1 Syllabus:\">FRM Part 1 Syllabus:<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#1_Foundations_of_Risk_Management_20\" title=\"1. Foundations of Risk Management (20%)\">1. Foundations of Risk Management (20%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#2_Quantitative_Analysis_20\" title=\"2. Quantitative Analysis (20%)\">2. Quantitative Analysis (20%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#3_Financial_Markets_and_Products_30\" title=\"3. Financial Markets and Products (30%)\">3. Financial Markets and Products (30%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#4_Valuation_and_Risk_Models_30\" title=\"4. Valuation and Risk Models (30%)\">4. Valuation and Risk Models (30%)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#FRM_Part_2_Syllabus\" title=\"FRM Part 2 Syllabus\">FRM Part 2 Syllabus<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#1_Market_Risk_Management_25\" title=\"1. Market Risk Management (25%)\">1. Market Risk Management (25%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#2_Credit_Risk_Management_25\" title=\"2. Credit Risk Management (25%)\">2. Credit Risk Management (25%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#3_Operational_and_Integrated_Risk_Management_25\" title=\"3. Operational and Integrated Risk Management (25%)\">3. Operational and Integrated Risk Management (25%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#4Risk_Management_and_Investment_Risk_Management_15\" title=\"4.Risk Management and Investment Risk Management (15%)\">4.Risk Management and Investment Risk Management (15%)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.talksomuch.com\/frm-part-1-syllabus\/#5_Current_Issues_in_Financial_Markets_10\" title=\"5. Current Issues in Financial Markets (10%)\">5. Current Issues in Financial Markets (10%)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p><center><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/i1.wp.com\/content.edupristine.com\/images\/blogs\/frm_part1_November_2014_syllabus.png?w=525&amp;ssl=1\" alt=\"FRM Part 1 Syllabus with topic wise distribution\" width=\"525\" height=\"156\" \/><\/center><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FRM_Part_1_Syllabus\"><\/span>FRM Part 1 Syllabus:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>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:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Foundations_of_Risk_Management_20\"><\/span>1. Foundations of Risk Management (20%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>This area focuses on a candidate\u2019s knowledge of foundational concepts of risk management and how risk management can add value to an organization and includes:<\/strong><\/p>\n<ul>\n<li>An understanding of corporate risk governance and the trade-off between risk and return<\/li>\n<li>The construction of efficient portfolios<\/li>\n<li>Fundamental asset pricing models<\/li>\n<li>Enterprise risk management frameworks<\/li>\n<li>Data quality management<\/li>\n<li>A review of major financial disasters<\/li>\n<li>To emphasize the importance of ethics as a fundamental requirement for sound risk management, applications of the GARP Code of Conduct to professional situations are covered in this section as well<\/li>\n<\/ul>\n<p><center><\/p>\n<div class=\"fina_txt_blog\"><b>Need Guidance? Ask from Experts!<\/b><\/div>\n<p><\/center><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Quantitative_Analysis_20\"><\/span>2. Quantitative Analysis (20%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This area tests a candidate\u2019s knowledge of basic probability and statistics, regression and time series analysis, and various quantitative techniques useful in risk management such as:<\/p>\n<ul>\n<li>Monte Carlo methods<\/li>\n<li>Volatility forecasting models<\/li>\n<li>Value-at-Risk estimation<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Financial_Markets_and_Products_30\"><\/span>3. Financial Markets and Products (30%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This area tests the candidate\u2019s knowledge of financial products and the markets in which they trade, including:<\/p>\n<ul>\n<li>Futures and forwards<\/li>\n<li>Equity options, swaps, and other derivatives<\/li>\n<li>Commodities<\/li>\n<li>Currencies<\/li>\n<li>Corporate bonds and interest rates<\/li>\n<li>A basic understanding of arbitrage arguments and hedging related to these financial products<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Valuation_and_Risk_Models_30\"><\/span>4. Valuation and Risk Models (30%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This area of FRM Pa will test a candidate\u2019s knowledge of valuation techniques and risk models. This includes:<\/p>\n<ul>\n<li>Basic bond valuation and bond hedging<\/li>\n<li>Valuation using binomial trees<\/li>\n<li>An understanding of the Black-Scholes-Merton model<\/li>\n<li>Value-at-Risk (VaR)<\/li>\n<li>Expected and unexpected loss estimation<\/li>\n<li>Stress testing<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FRM_Part_2_Syllabus\"><\/span>FRM Part 2 Syllabus<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>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:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Market_Risk_Management_25\"><\/span>1. Market Risk Management (25%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This section tests a candidate\u2019s knowledge of market risk measurement and management techniques. These include:<\/p>\n<ul>\n<li>Fixed-income interest rate sensitivities<\/li>\n<li>Volatility exposures<\/li>\n<li>Value-at-Risk (VaR) and back testing VaR<\/li>\n<li>Expected shortfall (ES)<\/li>\n<li>Correlations and copulas<\/li>\n<li>Parametric and non-parametric estimation methods<\/li>\n<li>Extreme value theory (EVT)<\/li>\n<li>Exotic options and mortgage-backed securities<\/li>\n<\/ul>\n<p><strong>Download:\u00a0FRM Part 1 Free Study Material<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Credit_Risk_Management_25\"><\/span>2. Credit Risk Management (25%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This area focuses on a candidate\u2019s 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Operational_and_Integrated_Risk_Management_25\"><\/span>3. Operational and Integrated Risk Management (25%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This section of FRM Part 2 November syllabus addresses a candidate\u2019s knowledge of two areas of increasing importance for many firms\u2014operational risk management and integrated risk management. This includes:<\/p>\n<ul>\n<li>Coverage of the tools and techniques necessary to measure, manage, and mitigate operational risk<\/li>\n<li>Economic capital allocation<\/li>\n<li>Enterprise risk management (ERM)<\/li>\n<li>Knowledge of critical issues related to liquidity risk management, model risk, loss data modelling and IT infrastructure, stress testing, and risk appetite<\/li>\n<li>Importantly, this section also tests a candidate\u2019s knowledge of key regulations and the major international regulatory frameworks relevant to risk managers today, such as Basel<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4Risk_Management_and_Investment_Risk_Management_15\"><\/span>4.Risk Management and Investment Risk Management (15%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This area focuses on a candidate\u2019s 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Current_Issues_in_Financial_Markets_10\"><\/span>5. Current Issues in Financial Markets (10%)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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\u2019s knowledge of the material covered by each paper. Recent topics have included:<\/p>\n<ul>\n<li>Sovereign Risk and Financial Crisis<\/li>\n<li>Flash Crash<\/li>\n<li>Financial Innovation and Its Issues<\/li>\n<\/ul>\n<p>That\u2019s the syllabus for FRM, All the best with your preparation!<\/p>\n<p>Source:\u00a0<a href=\"https:\/\/www.edupristine.com\/blog\/frm-syllabus\" target=\"_blank\" rel=\"nofollow noopener\">edupristine.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shut your doors, drop the drapes on your windows and don\u2019t bother looking at the clock because it\u2019s always the same time, \u201cFRM preparation time\u201d The FRM syllabus is broken down into syllabus for FRM Part 1 and syllabus for FRM Part 2. FRM Syllabus breakdown: FRM Part 1 Syllabus: FRM Syllabus covers the fundamental [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[401],"tags":[2761,2780,2735,2739,2740,2748,2758,2757,2783,2744,2754,2745,2764,2769,2747,2782,2751,2778,2777,2742,2766,2760,2738,2741,2763,2772,2770,2746,2750,2771,2773,2752,2759,2749,2765,2737,2774,2756,2767,2779,2734,2753,2762,2768,2755,2743,2776,2736,2781,2775],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/posts\/696"}],"collection":[{"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/comments?post=696"}],"version-history":[{"count":1,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/posts\/696\/revisions"}],"predecessor-version":[{"id":698,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/posts\/696\/revisions\/698"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/media\/697"}],"wp:attachment":[{"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/media?parent=696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/categories?post=696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.talksomuch.com\/wp-json\/wp\/v2\/tags?post=696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}