FRM Level 1 Syllabus 2025- Subjects, Weightage, Exam Pattern, Best Books
FRM Syllabus 2025 for Level 1: The Global Association of Risk Professionals (GARP) has released the FRM Level 1 Syllabus 2025. The FRM Part 1 syllabus 2025 comprises the subjects and topics covered in the exam. There are four subjects in Financial Risk Management Part 1 - Foundations of Risk Management, Quantitative Analysis, Financial Markets and Products, and Valuation and Risk Models. The FRM exam is conducted in Computer-Based Testing (CBT) mode. There will only be multiple-choice questions in the FRM exam. In this article, we will discuss FRM Syllabus for Part 1 in detail along with the paper pattern.
- FRM Level 1 Syllabus 2025 - Subjects and Weightage
- FRM Part 1 Syllabus 2025 - Subject-wise Detailed Curriculum
- FRM Level 1 Exam Pattern 2025
- Best Books to prepare for FRM Level 1
FRM Level 1 Syllabus 2025 - Subjects and Weightage
Subject | Weightage |
|---|---|
Foundations of Risk Management | 20% |
Quantitative Analysis | 20% |
Financial Markets and Products | 30% |
Valuation and Risk Models | 30% |
FRM Part 1 Syllabus 2025 - Subject-wise Detailed Curriculum
Candidates can find the detailed syllabus of FRM Level 1 2025 for each subject below:
FRM Exam Level 1 - Foundations of Risk Management
This subject of Level 1 covers the foundational concepts of risk management. Furthermore, this section will explore how risk management can add value to organizations. The key topics covered in this subject have been given below:
Foundations of Risk Management Topics
Basic risk types, measurement, and management tools
Creating value with risk management
Risk governance and corporate governance
Credit risk transfer mechanisms
The Capital Asset Pricing Model (CAPM)
Risk-adjusted performance measurement
Multifactor models
Data aggregation and risk reporting
Financial disasters and risk management failures
Ethics and the GARP Code of Conduct
Enterprise risk management (ERM)
FRM Exam Part 1 - Quantitative Analysis
The Quantitative Analysis subject of FRM Level 1 focuses majorly on probability, statistics, regression and time-series analysis. Apart from these, the subject covers other quantitative techniques useful in risk management. The key topics included in this subject have been given below:
Quantitative Analysis Topics
Discrete and continuous probability distributions
Estimating the parameters of distributions
Population and sample statistics
Bayesian analysis
Statistical inference and hypothesis testing
Measures of correlation
Linear regression with single and multiple regressors
Time series analysis and forecasting
Simulation methods
Machine Learning
FRM Exam Part 1 - Financial Markets and Products
The Financial Markets and Products subject of FRM Level 1 2025 deals with the financial markets and the products that they trade-in. The subject has been fragmented into the below given topics:
Financial Markets and Products topics
Structure and functions of financial institutions
Structure and mechanics of over-the-counter (OTC) and exchange markets
Structure, mechanics, and valuation of forwards, futures, swaps, and options
Hedging with derivatives
Interest rates and measures of interest rate sensitivity
Foreign exchange risk
Corporate bonds
Mortgage-backed securities
FRM Exam Part 1 - Valuation and Risk Models
The Valuation and Risk Models subject covers valuation techniques and risk models. The key topics in this subject have been given below:
Valuation and Risk Models Topics
Value-at-Risk (VaR)
Expected shortfall (ES)
Estimating volatility and correlation
Economic and regulatory capital
Stress testing and scenario analysis
Option valuation
Fixed-income valuation
Hedging
Country and sovereign risk models and management
External and internal credit ratings
Expected and unexpected losses
Operational risk
FRM Level 1 Exam Pattern 2025
Apart from the syllabus, candidates must also acquaint themselves with the exam pattern of FRM Part 1. The examination will be conducted in Computer-Based Testing mode. All the questions in the exam will be multiple choice questions. There will be a total of 100 questions in the exam. The duration of the FRM exam is 4 hours. The detailed FRM Level 1 exam pattern 2025 has been given below:
FRM Part 1 Exam Pattern 2025
| Particulars | Details |
|---|---|
Type of questions | Multiple Choice Questions (MCQs) |
Medium of exam | English |
Total number of questions | 100 |
Maximum marks | 100 |
Marks for each question | 1 mark |
Duration of the exam | 4 hours |
Best Books to prepare for FRM Level 1
Candidates need to have a good preparation to clear the FRM Level 1. GARP publishes its official study material to help students prepare for the FRM course. The FRM official study material is available in both online and offline mode. Candidates must note that the FRM Level 1 study material from GARP is a paid one. Apart from the study material, candidates can also refer to thee below given recommended books for FRM Level 1 preparation:
FRM Level 1 Books 2025
Financial Risk Management: A Practitioner's Guide to Managing Market and Credit Risk by Steve L. Allen
Options, Futures, and Other Derivatives by John C. Hull
Value at Risk: The New Benchmark for Managing Financial Risk by Philippe Jorion
The Essentials of Risk Management by Michel Crouhy, Dan Galai, and Robert Mark
Risk Management and Financial Institutions by John C. Hull
The Handbook of Credit Risk Management: Originating, Assessing, and Managing Credit Exposures by Sylvain Bouteille and Diane Coogan-Pushner
Financial Risk Manager Handbook, + Test Bank: FRM Part I / Part II by Philippe Jorion and GARP
You may also check - FRM Salary in India
Frequently Asked Questions (FAQs)
The FRM Level 1 Syllabus comprises four subjects - Foundations of Risk Management, Financial Markets and Products, Quantitative Analysis and Valuation and Risk Models.
FRM can be called a difficult exam as it has a vast curriculum and requires time to master topics.
The recommended study time for FRM Level 1 is 200 hours minimum. However, students must give at least six months or more to their FRM Level 1 preparation.
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