FRM Part 2 – 2025 Syllabus update

1. Market Risk Measurement and Management: 20%- Minor changes

Chapter 2024 Curriculum 2025 Curriculum Change

1 Estimating Market Risk Estimating Market Risk Retained
Measures: An Introduction and Measures: An Introduction and
Overview Overview
2 Non-parametric Approaches Non-parametric Approaches Retained
3 Parametric Approaches (II): Parametric Approaches (II): Retained
Extreme Value Extreme Value
4 Backtesting VaR Backtesting VaR Retained
5 VaR Mapping VaR Mapping (1 LO Updated) Updated
6 Messages from the academic Validating Bank Holding New
literature on risk Companies’ Value-at-Risk
measurement for the trading Models for Market Risk
book
7 Correlation Basics: Definitions, Correlation Basics: Definitions, Retained
Applications, and Terminology Applications, and Terminology
8 Empirical Properties of Empirical Properties of Retained
Correlation: How Do Correlation: How Do
Correlations Behave in the Real Correlations Behave in the Real
World? World?
9 Financial Correlation Modeling Financial Correlation Modeling Retained
— Bottom-Up Approaches — Bottom-Up Approaches
10 Empirical Approaches to Risk Regression Hedging and Updated
Metrics and Hedging Principal Component Analysis
(1 LO Added)
11 The Science of Term Structure Arbitrage Pricing with Term New
Models Structure Models
12 The Evolution of Short Rates Expectations, Risk Premium, New
and the Shape of the Term Convexity, and the Shape of the
Structure Term Structure (2 LO Added)
13 The Art of Term Structure The Art of Term Structure Retained
Models: Drift Models: Drift
14 The Art of Term Structure The Art of Term Structure Retained
Models: Volatility and Models: Volatility and
Distribution Distribution
15 Volatility Smiles The Vasicek and Hull-White New
Models
16 Fundamental Review of the Fundamental Review of the Retained
Trading Book Trading Book

2. Credit Risk Measurement and Management: 20%- No Change

3. Operational and Resiliency Risk Management: 20%- No Changes
 FRM Part 2 – 2025 Syllabus update
4. Liquidity and Treasury Risk Measurement and Management: 15%- No Changes
5. Risk Management and Investment Management: 15%- No Changes

6. Current Issues in Financial Markets: 10%- Major changes (as usual)

Chapter 2024 Curriculum 2025 Curriculum Change

1 Review of the Federal Reserve’s 2023 Bank Failures: New
Supervision and Regulation of Preliminary Lessons Learnt for
Silicon Valley Bank Resolution
2 The Credit Suisse CoCo Generative Artificial New
Wipeout: Facts, Intelligence in Finance: Risk
Misperceptions, and Lessons Considerations
for Financial Regulation
3 Artificial Intelligence and Bank Artificial Intelligence and the New
Supervision Economy: Implications for
Central Banks
4 Financial Risk Management “Interest Rate Risk New
and Explainable, Trustworthy, Management by EME Banks”
Responsible AI
5 Artificial Intelligence Risk Laying a Robust Macro- New
Management Framework Financial Foundation for the
Future
6 Climate-related risk drivers and The Last Mile: Financial New
their transmission channels Vulnerabilities and Risks,
Chapter 2: The Rise and Risks
of Private Credit
7 Climate-related financial risks Monetary and Fiscal Policy: New
— measurement Safeguarding Stability and
methodologies Trust
8 Principles for the ebective Regulating the Crypto New
management and supervision Ecosystem: The Case of
of climate-related financial Unbacked Crypto Assets
risks
9 The Crypto Ecosystem: Key Digital Resilience and Retained
Elements and Risks Financial Stability: The Quest
for Policy Tools in the Financial
Sector
10 Digital Resilience and Financial Removed
Stability: The Quest for Policy
Tools in the Financial Sector