FRM Exam Preparation: Part I

The Financial Risk Manager designation, awarded by GARP, is one of the most widely held credentials in risk management. Part I of the FRM exam tests the tools of the field: quantitative methods, markets and products, valuation and risk models, and the foundations of risk governance. This course gives structured teaching and practice for that exam.

What does FRM Part I cover?

Four areas: foundations of risk management, quantitative analysis, financial markets and products, and valuation and risk models. The exam is multiple choice and rewards fast, accurate calculation as much as understanding. The course teaches each area with worked problems and then builds speed with timed sets.

How is this different from the official FRM materials?

GARP’s official readings set out the curriculum; this course teaches it. Each topic is explained, worked through and practiced, and the practice results show which areas need more time. It is meant to be used alongside the official materials, not instead of them.

Who is this course for?

Candidates registered for or planning to sit FRM Part I. This is independent exam preparation: it is not affiliated with or endorsed by GARP, and completing it does not confer the FRM designation. It does not count toward any of the Institute’s credential programs.

What you will be able to do

• Work through the four FRM Part I topic areas with worked problems.
• Solve exam-style quantitative problems under time pressure.
• Identify and close gaps using topic-level practice results.
• Complete a full-length timed mock exam and review it.

Syllabus, module by module

1. The exam and a study plan

   Format, topic weights as published by GARP, and a plan for the hours available.

2. Foundations of risk management

   Risk governance, the CAPM and risk-adjusted performance, famous risk failures and ethics.

3. Quantitative analysis

   Probability, statistics, regression, time series and simulation for risk.

4. Financial markets and products

   Banks, funds, exchanges, forwards, futures, swaps, options and fixed income instruments.

5. Valuation and risk models

   VaR, option valuation, bond valuation and sensitivities, credit ratings and stress testing.

6. Timed practice

   Mixed problem sets under exam timing, with worked answers.

7. Mock exam and review

   A full-length mock exam and a structured review of weak areas.

What every course contains

Every paid course comes with the first seven and the certificate, whichever level it sits at. The proctored exam and the credential come when the course is taken as part of a Certificate, Diploma or Fellowship. Everything is self-paced: the material is yours to study in any order, at any hour, for the whole of the license.

1. Workbooks. Written to train the thinking patterns and the important concepts of the course, with worked problems and the reasoning behind each answer, so that you learn to think the way the subject is thought.
2. Audio edition. Focused, well-presented recordings with explainers and examples of the material, made to be interesting, relevant and entertaining, so that the general subject can be learned away from the desk.
3. Notes. Pre-produced notes with every fact the course relies on, written out in full, so that nothing has to be transcribed from the films or the audio.
4. Cheat sheet. One sheet with every important learning concept of the course on it, to keep beside you during the work and to revise from before the exam.
5. Named sources. Every fact in the notes names its source, the paper, the book or the dataset, for anyone who wants to dig in further.
6. Explainer films. Focused films, in the style of the sample films on the catalog page, that walk through the most difficult concepts of the course with visual explanations of a high standard.
7. Transcript. A full transcript of every film and every audio recording, searchable and quotable.
8. Proctored exam. Taken as part of a Certificate, Diploma or Fellowship, the course ends in a proctored multiple-choice questionnaire, with a pass mark of 60% and three retakes included. A course taken on its own is assessed by its coursework and has no exam.
9. Verifiable certificate. A certificate of completion that a third party can verify: an employer sends the code on it to the credentials office and receives written confirmation of the course, the date and the result.
10. Credential of the program. The Certificate, Diploma or Fellowship of the program, track or path the course belongs to, awarded when every course in it is passed. Which one depends on the program you choose.

How the certificate is earned

Topic quizzes, timed practice sets and a full-length mock exam with worked answers. The course certificate requires completing all practice sets and the mock exam; it is not an FRM qualification. On a pass you receive the Course certificate in FRM Exam Preparation, issued by the Institute with a verification code. A course taken as part of a Certificate, Diploma or Fellowship ends in a proctored online exam with a pass mark of 60%. The fee includes three retakes; each attempt after that carries a reduced proctored exam fee. A course taken on its own is assessed by its coursework and has no exam. Read how certification works.

Before you start

This course assumes the material of the courses below, or the same knowledge gained elsewhere.

• Probability for Quantitative Finance, with Statistics