The 2024 FRM Exam Curriculum: A Closer Look at What’s New

The 2024 FRM Exam Curriculum: A Closer Look at What’s New


The 2024 FRM syllabus has largely remained unchanged, but there are a few notable changes candidates should be aware of. Let’s dive into the details together!

FRM Part I

Under FRM Part I, there are no significant changes in Book 1: Foundations of Risk Management, but there’s a change in wording in Reading 9: Learning from Financial Disasters.

Book 2: Quantitative Analysis has seen modifications and additions of several learning objectives in the last two Readings: Machine-learning Methods and Machine Learning and Prediction.

In Book 3: Financial Markets and Products, one learning objective has been deleted in Reading 12: Options Markets and another one in Reading 20: Swaps.

In Valuation and Risk Models, seven Readings have been updated and now include several new learning objectives. At the same time, some learning objectives have been merged, and several others deleted.


After relative quiet in recent years, GARP seems to have embarked on quite a significant update of the FRM Part II curriculum. However, the bulk of these changes have come in Book 2: Credit Risk Measurement and Management, as we shall see below.

In Book 1: Market Risk Measurement and Management, one learning objective has been introduced under Reading 7: Correlation Basics: Definitions, Applications, and Terminology, with all other Readings remaining unchanged.

As previously mentioned, Book 2: Credit Risk Measurement and Management has undergone extensive updates, with seven Readings having been deleted and replaced with new ones. At the same time, some Readings now have additional learning objectives. Besides, several readings have been merged. Out of 24 Readings, only about half are without major changes.

In Book 3: Operational Risk and Resilience, a bunch of concepts have been added to one of the learning objectives under Reading 4: Risk Measurement and Assessment. There’s also a new learning objective in Reading 5: Risk Mitigation.

There are no changes in Book 4: Liquidity and Treasury Risk Measurement and Management.

In Book 5: Risk Management and Investment Management, only one LO has been deleted in Reading 9: Hedge Funds. All the other Readings remain unchanged.

Finally, we have the last Book – Current Issues in Financial Markets. According to GARP, this section of the curriculum focuses on emerging issues in financial markets, which means we’re almost sure of getting something new every year. And true to their word, they have retained only three readings from the 2023 curriculum. These are Reading 6: Climate-related Risk Drivers and their Transmission Channels, Reading 7: Climate-related Financial RisksMeasurement Methodologies, and Reading 8: Principles for the Effective Management and Supervision of Climate-related Financial Risks.

2023/2024 Syllabus Changes in Detail

FRM Part I

Book 1 – Foundations of Risk Management (20%)Comments
1The Building Blocks of Risk ManagementNo change
2How Do Firms Manage Financial Risk?No change
3The Governance of Risk ManagementNo change
4Credit Risk Transfer MechanismsNo change
5Modern Portfolio Theory and the Capital Asset Pricing ModelNo change
6The Arbitrage Pricing Theory and Multifactor Models of Risk and ReturnNo change
7Principles for Effective Data Aggregation and Risk ReportingNo change
8Enterprise Risk Management and Future TrendsNo change
9Learning from Financial DisastersWording change
10Anatomy of the Great Financial Crisis of 2007-2009No change
11GARP Code of ConductNo change
Book 2 – Quantitative AnalysisComments
1Fundamentals of ProbabilityNo change
2Random VariablesNo change
3Common Univariate Random VariablesNo change
4Multivariate Random VariablesNo change
5Sample MomentsNo change
6Hypothesis TestingNo change
7Linear RegressionNo change
8Regression With Multiple Explanatory VariablesNo change
9Regression DiagnosticsNo change
10Stationary Time SeriesNo change
11Non-Stationary Time SeriesNo change
12Measuring Returns, Volatility, and CorrelationNo change
13Simulation and BootstrappingNo change
14Machine-Learning Methods1 LO modified, 1 LO added
15Machine Learning and Prediction1 LO split into 2, 1 LO modified.
Book 3 – Financial Markets and ProductsComments
1BanksNo change
2Insurance Companies and Pension PlansNo change
3Fund ManagementNo change
4Introduction to DerivativesNo change
5Exchanges and OTC MarketsNo change
6Central ClearingNo change
7Futures MarketsNo change
8Using Futures for HedgingNo change
9Foreign Exchange MarketsNo change
10Pricing Financial Forwards and FuturesNo change
11Commodity Forwards and FuturesNo change
12Options Markets1 LO deleted
13Properties of OptionsNo change
14Trading StrategiesNo change
15Exotic OptionsNo change
16Properties of Interest RatesNo change
17Corporate BondsNo change
18Mortgages and Mortgage-Backed SecuritiesNo change
19Interest Rate FuturesNo change
20Swaps1 LO deleted
Book 4 – Valuation and Risk ModelsComments
1Measures of Financial RiskNo change
2Calculating and Applying VaR2 LOs modified
3Measuring and Monitoring VolatilityNo change
4External and Internal Credit RatingsNo change
5Country Risk: Determinants, Measures, and ImplicationsNo change
6Measuring Credit RiskNo change
7Operational RiskNo change
8Stress Testing1 new LO added
9Pricing Conventions, Discounting, and ArbitrageNo change
10Interest Rates1 LO deleted
11Bond Yields and Return Calculations1 LO updated
12Applying Duration, Convexity, and DV012 LOs updated
13Modeling Non-Parallel Term Structure Shifts and Hedging2 LOs merged, 3 LOs updated
14Binomial TreesNo change
15The Black-Scholes-Merton ModelNo change
16Option Sensitivity Measures: The “Greeks”2 LOs merged and updated


Book 1: Market Risk Measurement and Management (20%) Comments
1Estimating Market Risk Measures: An Introduction and OverviewNo change
2Non-Parametric ApproachesNo change
3Parametric Approaches (II): Extreme ValueNo change
4Backtesting VaRNo change
5VaR MappingNo change
6Messages from the academic literature on risk measurement for the trading bookNo change
7Correlation Basics: Definitions, Applications, and Terminology1 new LO added
8Empirical Properties of Correlation: How Do Correlations Behave in the Real World?No change
9Financial Correlation Modeling — Bottom-Up ApproachesNo change
10Empirical Approaches to Risk Metrics and HedgingNo change
11The Science of Term Structure ModelsNo change
12The Evolution of Short Rates and the Shape of the Term StructureNo change
13The Art of Term Structure Models: DriftNo change
14The Art of Term Structure Models: Volatility and DistributionNo change
15Volatility SmilesNo change
16Fundamental Review of the Trading BookNo change
Book 2 – Credit Risk Measurement and Management (20%)Comments
1Fundamentals of Credit RiskNew Reading
2GovernanceNew Reading
3Credit Risk ManagementNew Reading
4Capital Structure in BanksFormer CR 3
5Introduction to Credit Risk Modeling and AssessmentNew Reading
6Credit Scoring and RatingNew Reading
7Credit Scoring and Retail Credit Risk ManagementFormer CR 15
8Country Risk: Determinants, Measures, and ImplicationsNew Reading
9Estimating Default ProbabilitiesFormer CR 4 and CR 5 merged and updated
10Credit Value at RiskNew Reading
11Portfolio Credit RiskFormer CR 7 with some LOs updated
12Credit RiskNew Reading
13Credit DerivativesNew Reading
14DerivativesNew Reading
15Counterparty Risk and BeyondFormer CR 9
16Netting, Close-out, and Related AspectsFormer CR 10
17Margin (Collateral) and SettlementFormer CR 11
18Central ClearingNew Reading
19Future Value and ExposureFormer CR 12
20CVAFormer CR 13
21The Evolution of Stress Testing Counterparty ExposuresFormer CR 14
22Structured Credit RiskFormer CR 8, with 1 new LO
23An Introduction to SecuritizationFormer CR 17
Book 3 – Operational Risk and Resilience (20%)Comments
1Introduction to Operational Risk and ResilienceNo change
2Risk GovernanceNo change
3Risk IdentificationNo change
4Risk Measurement and Assessment1 LO updated
5Risk Mitigation1 LO added, 1 LO updated
6Risk ReportingNo change
7Integrated Risk ManagementNo change
8Cyber-resilience: Range of PracticesNo change
9Case Study: Cyberthreats and Information Security RisksNo change
10Sound Management of Risks Related to Money Laundering and Financing of TerrorismNo change
11Case Study: Financial Crime and FraudNo change
12Guidance on Managing Outsourcing RiskNo change
13Case Study: Third-Party Risk ManagementNo change
14Case Study: Investor Protection and Compliance Risks in Investment ActivitiesNo change
15Supervisory Guidance on Model Risk ManagementNo change
16Case Study: Model Risk and Model ValidationNo change
17Stress Testing BanksNo change
18Risk Capital Attribution and Risk-Adjusted Performance MeasurementNo change
19Range of practices and issues in economic capital frameworksNo change
20Capital Planning at Large Bank Holding Companies: Supervisory Expectations and Range of Current PracticeNo change
21Capital Regulation Before the Global Financial CrisisNo change
22Solvency, Liquidity and Other Regulation After the Global Financial CrisisNo change
23High-level summary of Basel III reformsNo change
24Basel III: Finalizing post-crisis reformsNo change
  Book 4 – Liquidity and Treasury Risk Measurement and Management (15%)Comments
1Liquidity RiskNo change
2Liquidity and LeverageNo change
3Early Warning IndicatorsNo change
4The Investment Function in Financial-Services ManagementNo change
5Liquidity and Reserves Management: Strategies and PoliciesNo change
6Intraday Liquidity Risk ManagementNo change
7Monitoring LiquidityNo change
8The Failure Mechanics of Dealer BanksNo change
9Liquidity Stress TestingNo change
10Liquidity Risk Reporting and Stress TestingNo change
11Contingency Funding PlanningNo change
12Managing and Pricing Deposit ServicesNo change
13Managing Non-Deposit LiabilitiesNo change
14Repurchase Agreements and FinancingNo change
15Liquidity Transfer Pricing: A Guide to Better PracticeNo change
16The US Dollar Shortage in Global Banking and the International Policy ResponseNo change
17Covered Interest Parity Lost: Understanding the Cross-Currency BasisNo change
18Risk Management for Changing Interest Rates: Asset-Liability Management and Duration TechniquesNo change
19Illiquid Assets
Book 5 – Risk Management and Investment Management (15%)Comments
1Factor TheoryNo change
2FactorsNo change
3Alpha (and the Low-Risk Anomaly)No change
4Portfolio ConstructionNo change
5Portfolio Risk: Analytical MethodsNo change
6VaR and Risk Budgeting in Investment ManagementNo change
7Risk Monitoring and Performance MeasurementNo change
8Portfolio Performance EvaluationNo change
9Hedge Funds1 LO deleted
10Performing Due Diligence on Specific Managers and FundsNo change
11Predicting Fraud by Investment ManagersNo change
Current Issues in Financial MarketsComments
1Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley BankNew Reading
2The Credit Suisse CoCo Wipeout: Facts, Misperceptions, and Lessons for Financial Regulation.New Reading
3Artificial Intelligence and Bank SupervisionNew Reading
4Financial Risk Management and Explainable, Trustworthy, Responsible AINew Reading
5Artificial Intelligence Risk Management FrameworkNew Reading
6Climate-related risk drivers and their transmission channelsFormer CI 3
7Climate-related financial risks – measurement methodologiesFormer CI 4
8Principles for the effective management and supervision of climate-related financial risksFormer CI 5
9The Crypto Ecosystem: Key Elements and RisksNew Reading
10Digital Resilience and Financial Stability. The Quest for Policy Tools in The Financial SectorNew Reading