FRM 2025 Part 1 & 2 | Detailed Syllabus
- FRM Part 1 Foundation Syllabus
- FRM Part 1 Quants Syllabus
- FRM Part 1 FMP Syllabus
- FRM Part 1 Valuation Syllabus
- FRM Part 2 Market Risk Syllabus
- FRM Part 2 Credit Risk Syllabus
- FRM Part 2 Operational Risk Syllabus
- FRM Part 2 Liquidity Risk Syllabus
Are you preparing for the FRM Exam? Get complete FRM Part 1 and Part 2 detailed syllabus 2025 in one place. This page covers the latest topics, FRM Part 1 and Part 2 subjects, and learning objectives released by GARP (Global Association of Risk Professionals). Whether you’re just starting your FRM preparation or planning your study schedule, understanding the full FRM Part 1 Subjects is the first step toward success. Explore a detailed breakdown of each FRM Subjects area, including Quantitative Analysis, Financial Markets, Risk Management, Valuation, Operational Risk, and Credit Risk, aligned with the official FRM exam structure. Stay updated with the most recent changes and make your FRM study plan more effective. Contact us for FRM Syllabus Detailed PDF.
FRM Part 1 Syllabus:
Tools and Techniques for Risk Management
This part emphasizes the fundamental tools and concepts required to assess financial risk. Key topics include:
𝗙𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗳 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
- Risk management concepts and applications
- Risk types: market, credit, operational, and liquidity risk
- Corporate governance and risk oversight
- Historical development of risk management
- The role of risk management in financial institutions
- Risk-adjusted performance measurement (RAPM)
𝗤𝘂𝗮𝗻𝘁𝗶𝘁𝗮𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
- Probability and statistical methods
- Regression and time-series analysis
- Monte Carlo simulation
- Hypothesis testing and confidence intervals
- Linear and nonlinear optimization techniques
- Applications of machine learning in risk modeling
𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝗮𝗻𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀
- Structure and functions of financial markets
- Derivative instruments: forwards, futures, options, and swaps
- Fixed income securities and interest rate dynamics
- Hedging strategies using derivatives
- Exotic derivatives and structured products
- Credit derivatives and their applications
𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗥𝗶𝘀𝗸 𝗠𝗼𝗱𝗲𝗹𝘀
- Valuation techniques for bonds and stocks
- Value at Risk (VaR) methodologies
- Stress testing and scenario analysis
- Volatility modeling
- Pricing models for options and derivatives
- Risk-neutral valuation techniques
FRM Part 2 Syllabus:
Advanced Risk Management Practices
This part focuses on applying risk management strategies and addressing complex financial risks. Key topics include
𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗶𝘀𝗸 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
- Advanced VaR and stress testing techniques
- Backtesting and validation of risk models
- Managing market risk in trading portfolios
- Historical and parametric methods of VaR
- Modeling correlations and dependencies
𝗖𝗿𝗲𝗱𝗶𝘁 𝗥𝗶𝘀𝗸 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
- Credit analysis and credit rating systems
- Default probabilities and credit exposure
- Credit derivatives and securitization
- Counterparty credit risk
- Credit valuation adjustment (CVA)
- Loss given default (LGD) and exposure at default (EAD)
𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗥𝗶𝘀𝗸 𝗮𝗻𝗱 𝗥𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝘆
- Identifying and measuring operational risk
- Business continuity planning
- Cybersecurity and technology risks
- Regulatory frameworks for operational risk
- Operational risk quantification methods
- Case studies on operational risk events
𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗮𝗻𝗱 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
- Liquidity risk measurement and stress testing
- Asset-liability management
- Funding and capital planning
- Liquidity regulations and requirements
- Cash flow forecasting and management
- Basel III liquidity standards
𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
- Integrating risk management into investment decisions
- Portfolio risk and performance attribution
- Risk budgeting and asset allocation
- Alternative investments and their risks
- Hedge fund strategies and risk considerations
- Risk-adjusted returns for investment portfolios
𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗜𝘀𝘀𝘂𝗲𝘀 𝗶𝗻 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀
- Emerging risks and global financial trends
- Climate risk and ESG considerations
- Regulatory changes and their impact on risk management
- FinTech and its implications for risk management
- Impact of geopolitical risks on financial markets
- Evolving risks in cryptocurrency and blockchain technologies
Level III:
Portfolio Management and Wealth Planning
The final level integrates all previous knowledge, focusing on portfolio management and wealth planning. Key topics include:
𝗘𝘁𝗵𝗶𝗰𝗮𝗹 𝗮𝗻𝗱 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀
- Application of ethical standards in portfolio management
- Advanced case studies on ethics
𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗪𝗲𝗮𝗹𝘁𝗵 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴
- Individual and institutional portfolio management
- Behavioral finance considerations
- Risk management techniques
- Tax-efficient investing
- Strategies for retirement planning
𝗙𝗶𝘅𝗲𝗱 𝗜𝗻𝗰𝗼𝗺𝗲
- Fixed income portfolio management strategies
- Liability-driven investing
- Managing bond portfolios in varying interest rate environments
- relationships
- Market structures and pricing strategies
𝗘𝗾𝘂𝗶𝘁𝘆 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀
- Equity portfolio management
- Active and passive investment strategies
- Style analysis and factor models
𝗗𝗲𝗿𝗶𝘃𝗮𝘁𝗶𝘃𝗲𝘀 𝗮𝗻𝗱 𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀
- Use of derivatives in portfolio management
- Alternative investments in portfolios
- Risk management with derivatives
- Structured products and their applications
𝗚𝗹𝗼𝗯𝗮𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 (𝗚𝗜𝗣𝗦)
- Implementation of GIPS standards
- GIPS compliance and verification
- Ethical considerations in performance reporting
Key Features of the FRM Program
The FRM Syllabus 2025 is carefully structured by GARP to reflect real-world financial risk challenges. It is divided into two parts: the FRM Part 1 syllabus builds a strong foundation with topics like Quantitative Analysis, Financial Markets, and Risk Models, while the FRM Part 2 syllabus focuses on applying those concepts to areas such as Credit Risk, Operational Risk, and Current Issues in Financial Markets. Understanding the detailed FRM syllabus is the first step toward clearing the exam and accelerating your career in risk management.
Global Recognition:
- FRM designation is widely respected by employers and professionals in the financial industry.
Specialized Focus:
- Concentrates on risk management, making it ideal for roles in banks, asset management, and regulatory bodies.
FRM Syllabus Preparation Tips
The FRM 2025 syllabus equips candidates with in-demand skills for careers in risk management, investment banking, and financial services. Globally recognized by GARP, the FRM certification ensures professional mobility and credibility across top financial institutions.
Familiarize yourself with the syllabus and exam structure.
Dedicate sufficient time to each topic based on its weight in the exam.
Utilize official study materials and question banks.
Practice extensively with past papers and mock exams.
Join study groups or find a mentor in the field.
Focus on understanding key concepts and their applications.
Create a consistent study schedule and stick to it.
Use visual aids like charts and diagrams to understand complex topics.
Scope of FRM in India and Abroad
Industries Employing FRM Certified Professionals
Banking and Financial Services
Investment Management
Insurance
Fintech
Consulting Firm
Regulatory Bodies
NBFCs
Banking and Financial Services
Types of Job Roles for FRM Professionals
The FRM Syllabus 2025 prepares you for roles like Risk Analyst, Credit Risk Manager, and Market Risk Specialist. While the FRM Part 1 syllabus builds core concepts, the FRM Part 2 syllabus focuses on practical, real-world risk management skills.
Risk Manager
Market Risk Analyst
Credit Risk Specialist
Operational Risk Manager
Treasury Manager
Quantitative Analyst
Consultant
