FRM Changes from 2018 to 2019

FRM Changes from 2018 to 2019

FRM Part I Changes in 2019

For FRM part I, there has been no addition or deletion of any chapters. In fact, some chapters have been rewritten but for the most part, all learning objectives have stayed the same. The only exceptions are the following four learning objectives that have been added in Book 3 – Financial Markets and Products:

Book 3  – Financial Markets and Products

$$\begin{array}{l|l|l}\textbf{Chapter}&\textbf{2018}&\textbf{2019}\\ \hline \text{1. Banks}& & \text{Evaluate the capital requirements for banks.}\\ \hline \text{19. Foreign exchange risk}& &{\text{Calculate and explain the effect of an}\\ \text{appreciation/depreciation of a currency relative}\\ \text{to a foreign currency.}}\\ \hline &&{\text{Identify and describe the different types of foreign}\\ \text{exchange trading activities.}}\\ \hline &&{\text{Explain the purchasing power parity theorem}\\ \text{and use this theorem to calculate the appreciation}\\ \text{or depreciation of a foreign currency.}} \end{array}$$

FRM Part II Changes in 2019

For FRM part II, there have been some major changes in Book 3 – Operational and Integrated Risk Management, with the addition of three new chapters and the removal of one chapter

Addition to the FRM part II curriculum

Chapter 23: Basel II.5, Basel III, and Other Post-Crisis Changes

Chapter 23: Regulation of the OTC Derivatives Market

Chapter 25: High-Level Summary of Basel III Reforms

Chapter 26: Basel III: Finalising Post-Crisis Reforms

Removal from the FRM part II curriculum

Chapter 8 Standardised Measurement Approach for Operational Risk

Also, there have been some changes in the Current Issues in Financial Markets:

Added articles

  • Emanuel Kopp, Lincoln Kaffenberger, and Christopher Wilson, “Cyber Risk, Market Failures, and Financial
    Stability,” (August 2017). IMF Working Paper No. 17/185.*
  • “Artificial intelligence and machine learning in financial services,” Financial Stability Board, Nov. 1, 2017.
  • Peter Gomber, Robert J. Kauffman, Chris Parker, and Bruce Weber, “On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption and Transformation in Financial Services,” Journal of Management Information Systems (2018): 35(1), 220-265.
  • “What is SOFR?” CME Group, March 2018.

Removed articles

  • Benjamin H. Cohen and Gerald A. Edwards, Jr., “The new era of expected credit loss provisioning,” BIS Quarterly Review, March 20, 2017.2.
  • Hyun Song Shin, “The bank/capital markets nexus goes global,” BIS  Quarterly Review, November 2016.
  • “FinTech credit: Market structure, business models and financial stability implications.” BIS—Committee on Global Financial Systems, May 2017.
  • Andrew W. Lo, “The Gordon Gekko Effect: The Role of Culture in the Financial Industry,” Federal Reserve
    Bank of New York Economic Policy Review, 22(1) (August 2016).*

FRM Part I & Part II Complete Course