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FRM Part I topic weights
4 topic areas, ranked by weight, with the modules, key terms and practice links for each.
The weights at a glance
100 equally weighted multiple-choice questions in four hours, by computer-based testing. Offered in May, August and November.
| Topic area | Weight | Relative size |
|---|---|---|
| Financial Markets & Products | 30% | |
| Valuation & Risk Models | 30% | |
| Foundations of Risk Management | 20% | |
| Quantitative Analysis | 20% |
Weights are from GARP's 2026 Learning Objectives; GARP had not published 2027 learning objectives when this page was checked in October 2026.
What each topic covers
Ordered from the heaviest weight down. Module names follow the official outline.
Financial Markets & Products
30% of the exam
Institutions, market structure, futures, swaps, options, rates, FX, MBS.
- Financial institutions and their risks: banks, insurers, pension funds, mutual and hedge funds
- Economic vs regulatory capital; insurance company ratios
- Exchange-traded and OTC market structure, central counterparties
- Forwards and futures: mechanics, margin, hedge ratios, basis risk
- Swaps: cash flows and valuation
- Options: mechanics and payoffs
- Interest rates and interest-rate products
- Foreign exchange risk
- Corporate bonds; mortgages and mortgage-backed securities
- Commodity forwards and futures
Topic map and sample questions. Key terms: Short selling · Margin (equity trading) · Derivative · Forward contract · Futures contract · Initial and variation margin · all 13. Worked guides: Valuing an interest rate swap · Initial margin and the uncleared margin rules.
Valuation & Risk Models
30% of the exam
VaR and ES, option valuation, bond risk, stress testing, credit and op risk.
- Value-at-Risk and Expected Shortfall; coherent risk measures
- Volatility and correlation estimation
- Economic and regulatory capital
- Stress testing and scenario analysis
- Option valuation; the binomial model and Black–Scholes–Merton
- Fixed-income valuation, duration, convexity and hedging
- Country and sovereign risk; external ratings and rating transition matrices
- Credit risk: expected loss, unexpected loss, credit VaR
- Operational risk: loss distributions, capital approaches, Monte Carlo estimation
Topic map and sample questions. Key terms: Continuous compounding · Lognormal distribution · Yield curve · Interest rate parity · Yield to maturity · Spot rate · all 23. Worked guides: Value at Risk: the square-root-of-time rule · Duration and convexity · Expected shortfall versus VaR.
Foundations of Risk Management
20% of the exam
Risk taxonomy, governance, CAPM, multifactor models, financial disasters.
- Risk types, and the tools used to measure and manage them
- Risk governance: board and audit responsibilities, risk appetite, ERM
- Credit risk transfer mechanisms
- CAPM and risk-adjusted performance measurement
- Multifactor models
- Risk data aggregation and risk reporting
- Financial disasters and case studies; lessons of the global financial crisis
- GARP Code of Conduct
Topic map and sample questions. Key terms: Inflation · Monetary policy · Moral hazard · Adverse selection · Agency problem · Business risk · all 23. Worked guides: Case studies: 22 risk management failures.
Quantitative Analysis
20% of the exam
Probability, hypothesis testing, regression, time series, volatility, simulation.
- Probability, Bayes' rule, random variables and common distributions
- Sample moments and hypothesis testing
- Linear regression; multiple regression and regression diagnostics
- Stationary and non-stationary time series
- Measuring volatility and correlation
- Simulation methods and bootstrapping
- Machine learning and prediction
Topic map and sample questions. Key terms: Continuous compounding · Arithmetic mean · Geometric mean · Variance · Standard deviation · Covariance · all 26. Worked guides: BA II Plus keystrokes for CFA and FRM.
Plan around it
- FRM exam dates and registration deadlinesEvery window for the next year, with the deadlines that matter.
- Free finance calculatorsVaR scaling, duration and convexity, and swap valuation.
- Finance glossary268 CFA® and FRM® terms in plain English.
- CFA Level I topic weights for 2027
- CFA Level II topic weights for 2027
- CFA Level III topic weights for 2027
- FRM Part II topic weights
Checked 28 October 2026. CFA® and FRM® are registered trademarks of their respective owners; Groundlearn is not affiliated with CFA Institute or GARP. Always confirm the current outline with the exam body.
Study it in Cornerstone
Cornerstone follows these weights: snapshot cards and five-question sessions for every CFA® and FRM® topic area, with progress weighted the way the exam is. Free to start on Android, and offline.
About CornerstoneOr get a free practice question every day on the Cornerstone WhatsApp channel.