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Are you planning to take the Financial Risk Manager (FRM) exam? Smart move. But here’s the thing: the FRM syllabus evolves every year and staying ahead of the changes is critical if you want to pass on the first attempt.
In this guide, we break down the 2026 FRM curriculum changes, highlight the key updates and explain exactly what they mean for your preparation strategy.
Regardless of whether you’re tackling FRM Part 1 or Part 2, this is your go-to FRM curriculum hub. We offer you actionable insights, detailed topic analysis and resources to help you study smarter, not harder.
Quick Summary of FRM Changes for 2026
Here’s a summary for busy candidates.
| Change Type | Part I | Part II | Notes |
| New topics | Applied Time Series Modeling | 7 new readings across Market, Credit, Operational, and Current Issues | Reflects AI, systemic risk, and forward-looking trends |
| Updated topics | Quantitative Analysis – Stationary Time Series | Market, Credit & Operational Risk, Current Issues | Shift from technical calculations to applied interpretation |
| Removed topics | None | Four readings from Liquidity Risk and Treasury Risk Management | Concepts integrated into other sections |
| Weighting shifts | Minor | Slight increase in Market & Credit Risk emphasis | Candidates must adjust study time |
| GARP emphasis | Real-world application | AI in finance, systemic risk, private credit, digital fragmentation | Forward-looking risk management |
Expected impact on difficulty:
- Part I: Slightly more analytical; requires applied understanding of time series rather than conceptual memorization.
- Part II: More complex analytics with deeper coverage of model validation, AI, systemic risk, and forward-looking topics.
Why GARP Adjusts the FRM Syllabus Every Year
You might wonder why GARP tinkers with the FRM syllabus each year. Here’s the reasoning:
- Alignment with regulatory trends: Basel III/IV reforms and IOSCO updates require updated risk frameworks.
- Technological evolution: Machine learning, AI, and digital resilience reshape how risk is measured.
- Real-world relevance: Employers expect candidates to understand the application of concepts, not just formulas.
- Market feedback: FRM exam data and feedback from past candidates drive curriculum refinements.
Simply put, the FRM 2026 syllabus is designed to reflect today’s risk landscape, not yesterday’s.
FRM Curriculum Changes for 2026 (Detailed Section)
FRM Part I — 2026 Curriculum Changes
Quantitative Analysis Updates:
- Updated focus: Applied Stationary Time Series modeling. You are expected to build AR and MA processes using given parameters, work with lag polynomials, and use characteristic equations to check for stationarity.
- Diagnostic interpretation: Apply and interpret Box-Pierce and Ljung-Box Q statistics and model selection criteria to choose the best-fitting model.
- Impact: Candidates who focus only on conceptual understanding or formula memorization may struggle. Success requires practical interpretation and analytical reasoning.
- Overall Part I: The rest of Part I remains unchanged, so your overall (FRM Study Plan) stays steady, emphasizing real-world reasoning rather than memorization.
Other Part I Topics:
- Foundations of Risk Management, Financial Markets & Products, and Valuation & Risk Models remain largely unchanged.
- Minor adjustments in LO wording emphasize practical applications.
Topic Weight Comparison (2025 → 2026):
| Topic | 2025 Weight | 2026 Weight | Change |
| Foundations of Risk Management | 20% | 20% | – |
| Quantitative Analysis | 20% | 20% | Shift from conceptual to applied interpretation |
| Financial Markets & Products | 30% | 30% | – |
| Valuation & Risk Models | 30% | 30% | – |
Impact on Difficulty:
- Slightly conceptual but now more applied; understanding risk tools in context is critical.
- Exam questions may test interpretation, diagnostics, and scenario-based reasoning.
- Focus on (FRM part 1 new topics) to ensure readiness.
FRM Part II — 2026 Curriculum Changes
The real transformation happens in Part II, where readings increase from 104 → 107.
FRM Part II Updates (Readings and Books):
- Removed from Book 4: Liquidity Risk and Treasury Risk Management:
- Managing and Pricing Deposit Services
- Risk Monitoring and Performance Measurement
- Hedge Funds
- Predicting Fraud by Investment Managers
- Reassigned: Illiquid Assets moved to Book 5: Risk Management and Investment Portfolio.
- New readings added to Book 5:
- Hedge Fund Investment Strategies
- Risk, Regulation and Organizational Structure
- Private Markets Investing
- Distress Symptoms and Remedies
- Madoff: A Riot of Red Flags
- Market-Driven Scenarios: An Approach for Plausible Scenario Construction
- Liquidity Risk Management
Current Issues Overhaul:
- Advances in Artificial Intelligence: Implications for Capital Markets Activities
- The Financial Stability Implications of Artificial Intelligence
- The Global Drivers of Private Credit
- Global Financial Stability Report
- Tokenization and Financial Market Inefficiencies
Retained from 2025 CI readings:
- Monetary and Fiscal Policy: Safeguarding Stability and Trust
- Regulating the Crypto Ecosystem: The Case of Unbacked Crypto Assets
- Digital Resilience and Financial Stability: The Quest for Policy Tools in the Financial Sector
Impact on Difficulty:
- Part II is more analytical, forward-looking, and deeper than before.
- Candidates must prepare for applied topics such as scenario construction, AI in finance, private markets, hedge fund strategies, and model validation.
- Using outdated (FRM 2025 syllabus) or older study materials may leave significant gaps.
- Focus on (FRM Part 2 new topics) for the 2026 exam.
FRM 2026 Topic Change Tables
Part I: Old vs New (2025 → 2026)
Part II: Old vs New (2025 → 2026)
Color Legend:
- Green: Unchanged
- Yellow: Updated / Revised
- Red: Removed / Deprecated
How Do These Changes Affect Your Study Strategy?
What to Study First:
- Prioritize new readings in Market Risk, Current Issues, and Part II applied topics.
- Review Part I Quantitative Analysis focusing on applied interpretation, diagnostics, and scenario reasoning.
How to Allocate Study Time:
- Adjust study time based on topic weighting:
- Market Risk & Credit Risk receive increased attention
- Current Issues now have higher exam relevance
Mock Exams & Practice Questions:
- Focus your practice on scenario generation, model validation, AI in finance, and hedge fund strategies.
- Use updated [mock exams page](Mock exams page) to mirror the 2026 exam style.
Detailed Breakdown of Each FRM Topic Area (2026 Edition)
Foundations of Risk Management (Part I):
- Minor updates; focus remains on fundamental frameworks.
Quantitative Analysis:
- Applied Stationary Time Series modeling with diagnostics.
Financial Markets & Products:
- No major changes; continue to master instruments and derivatives.
Valuation & Risk Models:
- Core valuation techniques remain. Emphasis on applying them in real-world contexts.
Market Risk Measurement (Part II):
- Focus on VAR, stress testing, and new scenario generation techniques.
Credit Risk Measurement:
- Emphasis on AI impact and forward-looking risk metrics.
Operational Risk:
- Cyber resilience, operational interdependencies, and scenario-based exercises now prominent.
Risk Management & Investment Portfolio:
- Minor updates; focus on integration with advanced models.
Current Issues in Financial Markets:
- AI, systemic risk, private credit, and digital fragmentation dominate.
Removed or Deprecated Topics (2025 → 2026)
- Part I: None
- Part II: Four readings from Liquidity Risk and Treasury Risk Management merged into integrated sections
Reason: Concepts now embedded into more practical sections to reflect real-world application.
New and Emerging Topics Added for 2025/2026
- Climate & ESG Risk: Scenario-based stress testing
- Machine Learning Updates: AI in portfolio and risk modeling
- Model Risk Governance: Enhanced VAR and backtesting techniques
- Liquidity Stress Testing: Integrated, not isolated
FRM Syllabus 2026 Study Resources
How AnalystPrep Keeps You in Control
Curriculum changes only feel overwhelming when you lack clarity. AnalystPrep removes that pressure. Our refreshed 2026 prep resources include:
- 93+ hours of FRM Level 1 and FRM Level 2 Video Lessons covering every updated reading with clear explanations
- Over 2,000 pages of Study Notes designed for quick comprehension of key topics
- 4,000+ Practice Questions aligned with revised FRM 2026 curriculum, FRM Part 1 new topics and FRM Part 2 new topics
- Five full-length mock exams that reflect the 2026 structure and updated question styles
Every resource shows you what changed, why it changed, and how to adjust your preparation with accuracy.
Additional materials:
FRM Study Plan
FRM Syllabus
FRM Question Banks
Frequently Asked Questions
Does the FRM syllabus change every year?
Yes. FRM GARP updates happen annually to reflect market, regulatory and technological developments, ensuring candidates are tested on the most relevant topics.
What changed in the FRM syllabus for 2026?
Part I emphasizes applied FRM part 1 new topics in Quantitative Analysis. Part II has major updates, including 7 new readings, revisions in Market, Credit and Operational Risk, and a complete overhaul of Current Issues, reflecting FRM part 2 new topics, AI, model validation and systemic risk.
Are syllabus changes significant for Part I or Part II?
- Part I: Minor; mostly conceptual and analytical.
- Part II: Major, more analytical, AI-focused and forward-looking.
Will the 2026 FRM exam be harder because of the updates?
- Part I: Difficulty similar, requiring applied understanding.
- Part II: More complex due to new readings, model validation, AI, systemic risk and scenario construction.
Do I need new study materials if the syllabus changes?
Yes, particularly for Part II. Using outdated resources may leave gaps in understanding the FRM new curriculum. AnalystPrep provides fully updated mock exams, study notes, and practice questions aligned with the 2026 syllabus.
Can I still use 2024 or 2025 books to study for 2026?
- Part I: Yes, with minor adjustments.
- Part II: Not recommended; using older books may miss important FRM 2025 changes and FRM part 2 new topics.
FRM eligibility changes
GARP occasionally updates candidate requirements. For 2026, confirm your eligibility before enrolling, as eligibility changes may affect work experience, education prerequisites and compliance with the latest FRM GARP updates.
Key Takeaways
- FRM Part I 2026: Mostly stable; focus on applied interpretation in Quantitative Analysis.
- FRM Part II 2026: Major updates in Market Risk, Credit Risk, Operational Risk and Current Issues.
- Study Smart: Use updated AnalystPrep materials, prioritize high-weight topics and practice mock exams reflecting 2026 changes.
- Stay Ahead: Download the free FRM 2026 Syllabus PDF to plan your study efficiently.
With this guide, you now have the full FRM 2026 curriculum mapped out, actionable insights, and resources to confidently tackle the exam.
Important Resources:
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