GARP FRM Learning Objectives 

This e-book is now updated and may be downloaded at your convenience.

Also visit the official Global Association of Risk Professionals website for more information and important updates with regards to registration, examination fees and about the designation. 

Of interest, its is noted that the GARP Learning Objectives for Part 1 of the Financial Risk Manager Course go into detail on several segments. Students are expected to anticipate being tested on areas such as:

  • Types of Risk, Enterprise Risk Management, Failures within the Management of Risk, the Various Types of Financial Disasters, the Reporting of Risk and Ethical matters within the workplace, among other things. These topics will fall under the first section of your studies and will carry an approximate weighting of 20%.
  • The second section of your studies will also be weighted 20% and will include topics as; Probability Distributions, Statistical Analysis, Copulas, Forecasting, Methodologies for Simulation, Distributive Parameters and Hypothesis Testing.
  • The third segment of the syllabus will be weighted 30% and will cover topical areas such as; the Structure of Markets, Derivatives, Hedging, Fx Risk, MBS Securities, the Valuation of financial instruments such as Options, Swaps, Forwards etc.
  • The fourth section will carry a 30% weight and surrounds itself with areas as; Stress Testing, Valuations for Fixed Income Instruments, Valuations for Options, Sovereign Risk, Expected/Unexpected Losses among other areas.

For Part 2 of the test, students must anticipate questions being thrown at them from 6 areas instead of 4, as in the first examination.

  • The first segment is weighted 20% and will cover areas including; Various Risk Measures, Modelling, Dependence and Volatility.
  • The second segment will also carry a 20% weight and students are expected to know about;  Credit Derivatives, Risk relating to Counter-parties, Risk of Default and information on Securitization.
  • The third segment weights 20%, and will encompass areas relating to operational risk.
  • The fourth segment will be 15% and will focus on; Liquidity and treasury managements.
  • The fifth segment will carry a 15% weight and centers around; Risk and investment management.
  • The sixth segment revolves around current issues facing the financial sector and weighs 10%.

Special Note: The Official GARP website will carry detailed information with regards to the overall course and other important details on how to earn the designation, updated books, pass rate etc.


The Official GARP Candidate Guide

This guide is extremely useful and discusses several topics such as:

  • Enhancing Your Career with the Certification
  • Exam Development and Structure
  • Official Contents of the Financial Risk Manager Examinations
  • Payments and Fees
  • Registration Guide
  • Study Resources and
  • Sitting for the Examination

This official guide is filled with invaluable information for persons who are new to the program as well as those who are returning candidates so be sure to read through its contents carefully.

Of interest, it is noted that updated data is presented with respect to the performance of the overall program, examination tested content and examination dates.