FRM® Part II PREPSMARTER

2017 Curriculum Changes

2016 2017
MARKET RISK MEASUREMENT AND MANAGEMENT
MR-3: Parametric Approaches (II): Extreme Value
Kevin Dowd, Measuring Market Risk, 2nd Edition

CREDIT RISK MEASUREMENT AND MANAGEMENT

CR-3: Default Risk: Quantitative Methodologies CR-3: Classifications and Key Concepts of Credit Risk
Arnaud de Servigny and Olivier Renault, Measuring and Managing Credit Risk Giacomo De Laurentis, Renato Maino, and Luca Molteni,
Developing, Validating and Using Internal Ratings

CR-4: Ratings Assignment Methodologies

Giacomo De Laurentis, Renato Maino, and Luca Molteni,
Developing, Validating and Using Internal Ratings

CR-5: Credit and Counterparty Risk

Allan Malz, Financial Risk Management: Models, History, and Institutions

CR-17: The Evolution of Stress Testing Counterparty Exposures

Stress Testing: Approaches, Methods, and Applications, Edited by Akhtar Siddique and Iftekhar Hasan

OPERATIONAL AND INTEGRATED RISK MANAGEMENT

OR-4: Information Risk and Data Quality Management
Anthony Tarantino and Deborah Cernauskas, Risk Management in Finance: Six Sigma and Other Next
Generation Techniques

OR-7: Operational Risk—Supervisory Guidelines for the Advanced Measurement Approaches OR-8: Standardised Measurement Approach for operational risk—consultative document
(Basel Committee on Banking Supervision Publication, June 2011). Paragraphs 1-42 (intro) and 160-261 (Basel Committee on Banking Supervision Publication, March 2016).
(Modeling) only

OR-9: Parametric Approaches (II): Extreme Value

Kevin Dowd, Measuring Market Risk, 2nd Edition

OR-10: Validating Rating Models

Giacomo De Laurentis, Renato Maino, Luca Molteni, Developing, Validating and Using Internal Ratings

OR-21: Guidance on Managing Outsourcing Risk

Board of Governors of the Federal Reserve System, Dec 2013

RISK MANAGEMENT AND INVESTMENT MANAGEMENT

IM-1: Factor Theory
Andrew Ang, Asset Management: A Systematic Approach to Factor Investing

IM-2: Factors
Andrew Ang, Asset Management: A Systematic Approach to Factor Investing

IM-3: Alpha (and the Low-Risk Anomaly)

Andrew Ang, Asset Management: A Systematic Approach to Factor Investing

IM-4: Illiquid Assets

Andrew Ang, Asset Management: A Systematic Approach to Factor Investing

CURRENT ISSUES IN FINANCIAL MARKETS

All new readings for 2017

New in 2017

Updated for 2017

Removed in 2017