Syllabus
FRM Part II Exam Prep Course
100 lessons. Online and self-paced.
Market Risk Measurement
Measure portfolio losses using alternative risk measures, estimation methods, dependence models, and validation procedures.
- 1Loss Distributions and Risk Measures
- 2Parametric Portfolio VaR Estimation
- 3Historical Simulation VaR Estimation
- 4Monte Carlo Market Risk Estimation
- 5Expected Shortfall and Coherent Measures
- 6Risk Measure Estimation Uncertainty
- 7VaR Mapping Across Risk Factors
- 8VaR Backtesting and Exception Tests
- 9Extreme Value Tail Estimation
- 10Correlation Estimation and Breakdown
- 11Copulas and Joint Tail Risk
Market Models and Capital
Apply interest-rate and volatility models and connect market risk estimates to trading-book capital requirements.
- 12Term Structure Risk Factors
- 13Short Rate Model Dynamics
- 14Arbitrage Free Rate Trees
- 15Term Structure Model Selection
- 16Volatility Smiles and Skews
- 17Volatility Term Structures and Hedges
- 18FRTB Scope and Trading Boundaries
- 19FRTB Standardized Capital Components
- 20FRTB Internal Model Requirements
Credit Analysis and Losses
Evaluate borrower quality, estimate default probabilities, and construct credit loss distributions.
- 21Borrower Financial Statement Analysis
- 22Credit Ratings and Migration
- 23Sovereign and Country Credit Analysis
- 24Structural Default Risk Models
- 25Reduced Form Default Risk Models
- 26Expected Credit Loss Components
- 27Unexpected Credit Loss and Dependence
- 28Migration Based Credit VaR
- 29Default Based Portfolio Credit Models
- 30Credit Concentration and Portfolio Limits
Counterparty and Structured Credit
Measure derivative counterparty exposures and evaluate credit transfer and securitization structures.
- 31Counterparty Exposure Profiles and Measures
- 32Netting Collateral and Margin
- 33Counterparty Valuation Adjustments
- 34Wrong Way Exposure Dependence
- 35Credit Default Swap Valuation
- 36Credit Derivative Hedge Basis
- 37Central Clearing Default Management
- 38Securitization Structures and Credit Enhancement
- 39Tranche Loss Allocation and Dependence
- 40Mortgage Securitization Cash Flow Risk
Operational Risk and Resilience
Build operational risk frameworks and select controls for disruption, cyber threats, outsourcing, and financial crime.
- 41Operational Risk Governance and Culture
- 42Operational Event Classification and Reporting
- 43Control Assessments and Risk Indicators
- 44Operational Loss and Scenario Measurement
- 45Operational Controls and Risk Transfer
- 46Cyber Risk Controls and Response
- 47Critical Operations and Disruption Tolerances
- 48Third Party Outsourcing Risk
- 49Money Laundering and Terrorist Financing
- 50Fraud and Financial Crime Controls
Model Risk and Capital
Evaluate model governance, bank stress tests, risk-adjusted performance, and regulatory capital frameworks.
- 51Model Inventory and Lifecycle Governance
- 52Independent Model Validation Methods
- 53Model Monitoring and Implementation Risk
- 54Bank Stress Scenario Design
- 55Stressed Balance Sheets and Capital
- 56RAROC Calculation and Decision Rules
- 57Economic Capital Aggregation and Allocation
- 58Basel Capital Architecture and Buffers
- 59Basel Risk Charges and Supervision
- 60Capital Planning Under Stress
Liquidity Measurement and Planning
Measure liquidity exposures and design portfolios, stress tests, and contingency responses.
- 61Funding and Market Liquidity Interaction
- 62Liquidity Coverage Ratio Mechanics
- 63Stable Funding and Structural Metrics
- 64Liquidity Buffer Portfolio Construction
- 65Contractual and Behavioral Cash Flows
- 66Liquidity Stress Scenarios and Survival
- 67Liquidity Reporting and Limit Escalation
- 68Contingency Funding Plan Execution
Treasury and Balance Sheets
Evaluate funding structures, internal transfer prices, cross-currency financing, and banking-book interest-rate exposures.
- 69Retail and Wholesale Funding Models
- 70Secured Funding and Asset Encumbrance
- 71Matched Maturity Funds Transfer Pricing
- 72Contingent Liquidity Transfer Charges
- 73Cross Currency Funding and Basis
- 74Banking Book Interest Rate Risk
- 75Asset Liability Hedging Decisions
Portfolio Construction and Risk
Apply factor models, portfolio optimization, risk measures, and risk budgeting to investment decisions.
- 76Factor Models and Return Attribution
- 77Factor Investing and Risk Premia
- 78Mean Variance Portfolio Optimization
- 79Benchmark Relative Portfolio Construction
- 80Portfolio Risk Measures and Limitations
- 81Marginal and Component Risk Contributions
- 82Risk Budgets and Risk Parity
- 83Active Management Risk Budgets
Investment Performance and Oversight
Evaluate manager performance, alternative investments, liquidity exposure, and portfolio resilience.
- 84Risk Adjusted Performance Measures
- 85Performance Attribution and Manager Skill
- 86Hedge Fund Strategies and Risks
- 87Private Market Valuation and Commitments
- 88Manager Due Diligence and Monitoring
- 89Asset Liquidity and Liquidation Costs
- 90Portfolio Stress Testing and Responses
AI and Macroeconomic Risks
Analyze the assigned 2026 readings on artificial intelligence, private credit, geopolitical shocks, and government debt.
- 91AI in Capital Markets Activities
- 92AI Financial Stability Transmission
- 93Global Drivers of Private Credit
- 94Geopolitical Shocks and Financial Stability
- 95Government Debt and Policy Credibility
Digital Finance and Integration
Evaluate assigned digital finance readings and integrate current issues into risk decisions and exam practice.
- 96Unbacked Crypto Asset Regulation
- 97Tokenization and Financial Market Inefficiencies
- 98Digital Resilience Policy Tools
- 99Technology Provider Concentration Risk
- 100Private Credit Interconnection Risk