FRM Part I Previous Year Question PapersWith solutions

Foundations of Risk Management (20%) — Part I (Risk types and the risk management process)

Risk types and the risk management process, Corporate governance and risk appetite, Credit risk transfer mechanisms, CAPM, multifactor models and risk-adjusted performance

Foundations of Risk Management (20%) — Part II (Data aggregation and risk reporting)

Data aggregation and risk reporting, Enterprise risk management, Learning from financial disasters, GARP Code of Conduct

Quantitative Analysis (20%) — Part I (Probability and probability distributions)

Probability and probability distributions, Sample moments and parameter estimation, Bayesian analysis, Hypothesis testing

Quantitative Analysis (20%) — Part II (Correlation, linear and multiple regression)

Correlation, linear and multiple regression, Time series and volatility modelling, Simulation and bootstrapping, Machine learning methods

Financial Markets and Products (30%) — Part I (Banks, insurance companies, fund managers)

Banks, insurance companies, fund managers and clearing houses, Futures, forwards and hedging strategies, Options, swaps and exotic options

Financial Markets and Products (30%) — Part II (Interest rates and rate sensitivity)

Interest rates and rate sensitivity, Foreign exchange risk, Corporate bonds and mortgage-backed securities

Valuation and Risk Models (30%) — Part I (Value at Risk and expected shortfall)

Value at Risk and expected shortfall, Estimating volatility and correlation, Stress testing and scenario analysis, Binomial and Black-Scholes-Merton option valuation

Valuation and Risk Models (30%) — Part II (Bond valuation, duration and convexity)

Bond valuation, duration and convexity, Credit ratings, country risk and expected loss, Operational risk measurement