How to Prepare for the FRM Part I Exam with Books from 2014
The Financial Risk Manager (FRM) exam is a rigorous and comprehensive test of risk management knowledge and skills. The exam consists of two parts: Part I and Part II. Part I covers the foundations of risk management, quantitative analysis, financial markets and products, and valuation and risk models. Part II covers market risk measurement and management, credit risk measurement and management, operational risk and resilience, liquidity and treasury risk measurement and management, and risk management and investment management.
To pass the FRM exam, candidates need to study hard and use the best resources available. One of the official resources provided by the Global Association of Risk Professionals (GARP), the organization that administers the FRM exam, is a set of books that cover all the topics and readings required for each part of the exam. These books are updated every year to reflect any changes in the curriculum or the exam format.
However, some candidates may not have access to the latest books or may prefer to use older books for various reasons. For example, some candidates may have bought or borrowed books from previous years and want to save money or time by not getting new ones. Some candidates may also find older books more familiar or easier to understand than newer ones.
If you are one of those candidates who want to use books from 2014 to prepare for the FRM Part I exam, you may wonder how effective they are and what adjustments you need to make. In this article, we will try to answer these questions and give you some tips on how to use 2014 books for your FRM Part I exam preparation.
How Effective Are 2014 Books for FRM Part I Exam Preparation
The first thing you need to know is that the FRM curriculum is revised annually by GARP's FRM Committee to ensure that it reflects the current knowledge and skills required for risk managers. This means that every year, some topics or readings may be added, removed, or modified in the curriculum. Therefore, using older books may result in some gaps or overlaps in your study material.
To give you an idea of how much the curriculum has changed since 2014, here is a summary of the main differences between the 2014 and 2023 FRM Part I curricula:
The number of topics has increased from four to five. The new topic is Valuation and Risk Models, which was previously part of Financial Markets and Products.
The number of readings has increased from 52 to 59. Seven new readings have been added, while none have been removed.
The weightings of the topics have changed slightly. Foundations of Risk Management has increased from 20% to 25%, Quantitative Analysis has decreased from 20% to 15%, Financial Markets and Products has decreased from 30% to 25%, Valuation and Risk Models has been introduced with a weighting of 15%, and Risk Management in Practice has remained unchanged at 20%.
As you can see, there are some significant changes in the FRM Part I curriculum since 2014. This means that using 2014 books alone may not be sufficient or optimal for your exam preparation. You may miss some important concepts or practice questions that are relevant for the current exam. You may also waste time or get confused by studying some outdated or irrelevant material that is no longer tested on the exam.
How to Use 2014 Books for FRM Part I Exam Preparation
If you still want to use 2014 books for your FRM Part I exam preparation, you need to make some adjustments and supplements to ensure that you cover all the required material and avoid any unnecessary confusion. Here are some suggestions on how to do that:
Download the latest FRM Learning Objectives document and FRM Study Guide from GARP's website. These documents provide a comprehensive framework and a detailed outline of the topics, readings, and learning objectives that are tested on the exam. They also indicate any changes or updates in the curriculum from year to year. You should use these documents as your primary reference and guide for your study plan.
Compare the readings in your 2014 books with those in the latest FRM Study Guide aa16f39245