FRM Level 1 Syllabus 2017 (Part I Course Curriculum PDF)

Checkout FRM Level 1 Syllabus (Part 1 Exam) updated for 2017. The Syllabus details was also made available in PDF. FRM refers to Finance and Risk Management. FRM Level 1 Exam will have four subjects in its syllabus. FRM Level 1 Syllabus have Foundations of Risk Management, Quantitative Analysis, Financial Markets and Products and Valuation and Risk Models.

FRM Level 1 Syllabus 2017

Paper 1: Foundations of Risk Management (Weight 20%)

  • Risk Management: A Helicopter View
  • Corporate Risk Management: A Primer
  • Corporate Governance and Risk Management
  • What is ERM
  • Financial Disasters
  • The Standard Capital Asset Pricing Model
  • Arbitrage Pricing Theory and Multifactor Models of Risk and Return

Paper 2: Quantitative Analysis (Weight 30%)

  • Probabilities
  • Basic Statistics
  • Distributions
  • Bayesian Analysis
  • Hypothesis Testing and Confidence Intervals
  • Linear Regression with One Regressor
  • Regression with a Single Regressor
  • Linear Regression with Multiple Regressors
  • Hypothesis Tests and Confidence Intervals in Multiple Regression
  • Modeling and Forecasting Trend
  • Modeling and Forecasting Seasonality
  • Characterizing Cycles
  • Modeling Cycles: MA, AR, and ARMA Models
  • Volatility
  • Correlations and Copulas
  • Simulation Methods

Paper 3: Financial Markets and Products (Weight 30%)

  • Banks
  • Insurance Companies and Pension Plans
  • Mutual Funds and Hedge Funds
  • Mechanics of Futures Markets
  • Hedging Strategies Using Futures
  • Interest Rates
  • Determination of Forward and Futures Prices
  • Interest Rate Futures
  • Swaps
  • Mechanics of Options Markets
  • Properties of Stock Options
  • Trading Strategies Involving Options
  • Exotic Options
  • Commodity Forwards and Futures
  • Exchanges, OTC Derivatives, DPCs and SPVs
  • Basic Principles of Central Clearing
  • Risks Caused by CCPs: Risks Faced by CCPs
  • Foreign Exchange Risk
  • Corporate Bonds
  • Mortgages and Mortgage-Backed Securities

Paper 4: Valuation and Risk Models (Weight 30%)

  • Quantifying Volatility in VaR Models
  • Putting VaR to Work
  • Measures of Financial Risk
  • Binomial Trees
  • The Black-Scholes-Merton Model
  • Greek Letters
  • Prices, Discount Factors, and Arbitrage
  • Spot, Forward and Par Rates
  • Returns, Spreads and Yields
  • One-Factor Risk Metrics and Hedges
  • Multi-Factor Risk Metrics and Hedges
  • External and Internal Ratings
  • Capital Structure in Banks
  • Operational Risk
  • Governance over Stress Testing
  • Stress Testing and Other Risk Management Tools

FRM Syllabus Learning Objective

The FRM is a comprehensive exam and you are expected to be familiar with a broad range of risk management concepts and techniques. Key concepts appear in the FRM Study Guide as bullet points at the beginning of each section to help you identify the major themes and knowledge domains associated with the readings listed under each section.

The FRM Learning Objectives document builds upon the Study Guide and highlights more details around the recommended readings as well as specific learning objectives associated with each section of the knowledge domains covered by the FRM Exam.

Approximate weightings in FRM Syllabus for each knowledge domain are assigned to help you navigate through the self-study process as these learning objectives form the backbone of the exam itself; therefore, it is strongly suggested that you become familiar with these learning objectives as you review the readings.