Have you understood the nine modules of FRM exam?

For candidates who are new to FRM and apply for FRM, the outline and content of FRM exam should be made clear first. Here, I will give candidates a detailed explanation of the structure and content of the nine modules of FRM and the proportion of each subject in the FRM Level 1 exam.

1. Structure:

Modules 9 to 4 are basic knowledge (quantitative analysis, product knowledge and valuation methods). Only after mastering these knowledge can you enter the remaining risk management modules (market risk, credit risk, operational risk, investment management and current hot topics in financial markets).

for example, applying VaR to estimate the market risk of bonds (market risk management module) will use the basic knowledge of market risk (module 1), normal distribution (module 2) and bond valuation and sensitivity analysis (modules 3 and 4).

2. Don't spend too much time on some topics, which will affect your study plan. For example, although quantitative analysis belongs to the basic knowledge part, it is not necessary to master all the examination contents before learning other parts. All you have to master is normal distribution and confidence interval, and regression analysis is also necessary for the subsequent study.

3. It is critical to master the use of special financial calculators. For example, you should be able to use calculators to calculate the maturity price and yield of bonds. There will be a special part in eLearning course to explain the use of calculators.

4. Learn step by step. The reason why I will explain the knowledge of the second module in part *9 is because I hope that students can know how to calculate "expected return" and volatility (standard deviation of return) before teaching portfolio theory.

5. necessary memory. You need to remember commonly used normal distribution related values (*4 even remembers T distribution), such as one-tailed and two-tailed test values under 9%, 95% and 99% confidence intervals.

second, The proportion and outline of FRM Level 1 examination subjects

(1) Risk management foundation 2%

Role of risk management

Basic risk types

Measurement and management tools

Creation value of risk management

Standard and nonstandard capital asset pricing models in modern modern portfolio theory

Index model

Risk adjustment performance measurement

. Code of the strategy of morality and virtue

(II) Quantitative analysis of 2%

Discrete and continuous probability distribution