The FRM has two parts: Part I builds the risk toolkit, and Part II applies it to market, credit, operational and liquidity risk. Weights are set by GARP and can change, so confirm the current ones with the official learning objectives.
Part I (the foundations and tools)
| Area | Weight | Note |
|---|---|---|
| Foundations of Risk Management | 20% | Concepts, governance, ethics, the role of risk management |
| Quantitative Analysis | 20% | Probability, statistics, regression |
| Financial Markets and Products | 30% | Derivatives (forwards, futures, options, swaps), fixed income |
| Valuation and Risk Models | 30% | Value at Risk, volatility, valuation, model basics |
Part II (applied risk management)
| Area | Weight | Note |
|---|---|---|
| Market Risk Measurement and Management | 20% | Measuring and managing market risk |
| Credit Risk Measurement and Management | 20% | Default, exposure and credit models |
| Operational Risk and Resilience | 20% | Operational loss, resilience, regulation |
| Liquidity and Treasury Risk | 15% | Funding and liquidity risk |
| Risk Management and Investment Management | 15% | Risk applied to portfolios |
| Current Issues in Financial Markets | 10% | Recent market and risk developments |
How the parts connect
Part I is the toolkit (quant, products, valuation, VaR); Part II is the application to each risk type. Part II is only graded if Part I is passed, so master the foundations first. Confirm current weights with GARP.