Accounts | Course Paper

2020

FRM®

Study Guide Changes

garp.org/frm 22020 FRM Exam Part I

FRM EXAM

PART I

garp.org/frm 32020 FRM Exam Part I

FRM EXAM PART I

Foundations of Risk Management

PART I EXAM WEIGHT | 20%

ADDITIONS

For 2020, the entirety of the Foundations of Risk Management curated readings has been replaced with

GARP’s proprietary Foundations of Risk Management book. The contents of this book are as follows:

• Chapter 1. The Building Blocks of Risk Management

• Chapter 2. How Do Firms Manage Financial Risk?

• Chapter 3. The Governance of Risk Management

• Chapter 4. Credit Risk Transfer Mechanisms

• Chapter 5. Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM)

• Chapter 6. The Arbitrage Pricing Theory and Multifactor Models of Risk and Return

• Chapter 7. Principles for Eective Data Aggregation and Risk Reporting

• Chapter 8. Enterprise Risk Management and Future Trends

• Chapter 9. Learning from Financial Disasters

• Chapter 10. Anatomy of the Great Financial Crisis

• Chapter 11. GARP Code of Conduct*

*This reading is freely available on the GARP website.

garp.org/frm 42020 FRM Exam Part I

FRM EXAM PART I

Quantitative Analysis

PART I EXAM WEIGHT | 20%

ADDITIONS

For 2020, the entirety of the Quantitative Analysis curated readings has been replaced with GARP’s

proprietary Quantitative Analysis book. The contents of this book are as follows:

• Chapter 1. Fundamentals of Probability

• Chapter 2. Random Variables

• Chapter 3. Common Univariate Random Variables

• Chapter 4. Multivariate Random Variables

• Chapter 5. Sample Moments

• Chapter 6. Hypothesis Testing

• Chapter 7. Linear Regression

• Chapter 8. Regression with Multiple Explanatory Variables

• Chapter 9. Regression Diagnostics

• Chapter 10. Stationary Time Series

• Chapter 11. Nonstationary Time Series

• Chapter 12. Measuring Returns, Volatility and Correlation

• Chapter 13. Simulation and Bootstrapping

FRM EXAM PART I

Financial Markets and Products

PART I EXAM WEIGHT | 30%

ADDITIONS

For 2020, the entirety of the Financial Markets and Products curated readings has been replaced with

GARP’s proprietary Financial Markets and Products book. The contents of this book are as follows:

• Chapter 1. Banks

• Chapter 2. Insurance Companies and Pension Plans

• Chapter 3. Fund Management

• Chapter 4. Introduction to Derivatives

• Chapter 5. Exchanges and OTC Markets

• Chapter 6. Central Clearing

• Chapter 7. Futures Markets