FRM Level 1 Syllabus 2025- Subjects, Weightage, Exam Pattern, Best Books

FRM Level 1 Syllabus 2025 - Subjects and Weightage

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

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

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