FRM Part 1 Changes in 2019
For FRM part 1, there has been no addition or deletion of any chapters. In fact, some chapters have been re-written 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
|1. Banks||Evaluate the capital requirements for banks.|
|19. Foreign exchange risk||Calculate and explain the effect of an appreciation/depreciation of a currency relative to a foreign currency.|
|Identify and describe the different types of foreign exchange trading activities.|
|Explain the purchasing power parity theorem and use this theorem to calculate the appreciation or depreciation of a foreign currency.|
FRM Part 2 Changes in 2019
For FRM part 2, 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 2 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 2 curriculum
Chapter 8 Standardised Measurement Approach for Operational Risk
Also, there have been some changes in the Current Issues in Financial Markets:
- 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.
- 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).*