Who should attend
There are no formal requirements needed to study FRM, but you are expected to have good mathematical and English skills.
About the course
The FRM challenges candidates to understand and apply a range of knowledge and skills necessary to function effectively as a risk manager. FRM Part 1 covers the tools used to assess financial risk, including quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models.
FRM Part 1 consists of four topics which are mandatory and examined by a paper-and-pencil, multiple choice exam. The exam has 100 equally weighted questions and you have four hours to complete the exam.
Below is a syllabus overview detailing topics and their approximate exam weighting. For more information, please visit the GARP website.
Part 1 Approximate exam weight
- Foundations of Risk Management 20%
- Quantitative Analysis 20%
- Financial Markets and Products 30%
- Valuation and Risk Models 30%
Foundations of Risk Management
This area focuses on your knowledge of foundational concepts of risk management and how risk management can add value to an organisation. Topics include basic risk types, measurement and management tools, creating value with risk management, the role of risk management in corporate governance, Enterprise Risk Management (ERM), financial disasters and risk management failures, the Capital Asset Pricing Model (CAPM), risk-adjusted performance measurement, multifactor models, data aggregation and risk reporting, ethics and the Global Association of Risk Professionals (GARP®) Code of Conduct.
This area tests your knowledge of basic probability and statistics, regression and time series analysis, and various quantitative techniques useful in risk management. Topics include discrete and continuous probability distributions, estimating the parameters of distributions, population and sample statistics, Bayesian analysis, statistical inference and hypothesis testing, estimating correlation and volatility using EWMA and GARCH models, volatility term structures, correlations and copulas, linear regression with single and multiple regressors, time series analysis and forecasting and simulation methods.
Financial Markets and Products
This area tests your knowledge of financial products and the markets in which they trade. Topics include structures and functions of financial institutions, the structure and mechanics of OTC and exchange markets, the structure, mechanics, and valuation of forwards, futures, swaps, and options, hedging with derivatives, interest rates and measures of interest rate sensitivity, foreign exchange risk, corporate bonds and mortgage-backed securities.
Valuation and Risk Models
This area will test your knowledge of valuation techniques and risk models such as Value-at-Risk (VaR), expected shortfall (ES), stress testing and scenario analysis, option valuation, fixed income valuation, hedging, country and sovereign risk models and management, external and internal credit ratings, expected and unexpected losses and operational risk.
Why study FRM Part 1 with Kaplan?
Learn from world-class tutors with years of teaching and industry experience - rest assured you are in capable hands.
Flexible study options
Our study tools are flexible enough to fit around your lifestyle. From online to classroom, we give you all the support and materials you need to succeed.
We know the exams are tough but we’re here to help you every step of the way. Should you need a second chance we’ll put you back on track with our pass commitment.
Unrivalled study materials
We understand that FRM is a big time commitment, which is why you will get access to comprehensive Schweser study materials and practice questions to keep you on track.
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.