In response to the changes occurring in the global markets and in recogni-
tion of the growing complexities associated with the profession of financial
risk management, GARP has revised its FRM certification program. By
implementing the revised program this year, GARP\u2019s FRM Committee
and Board of Trustees have responded to market-driven requirements
and outwardly demonstrated the view that risk management is a dynamic
discipline that must continuously encompass product innovation and evolve
with changing market conditions. The events of the past 24 months have led
to a rapidly growing and recognized need for skilled risk managers world-
wide. To objectively ensure their skill sets are sufficient to meet both the
challenges and opportunities of an increasingly global and interconnected
financial environment, the FRM program\u2019s syllabus was revised to more
adequately measure a candidate\u2019s understanding of the tools necessary to
assess financial risks, and the candidate\u2019s ability to apply those tools in a
practice-type setting. This FRM program change is designed to ensure that
the FRM designation continues to evolve and represent the high standards
for which it is recognized worldwide.

This year the FRM program will transition to a two-level examination format
by offering for the last time the full FRM exam, and for the first time, Level I
of the new two-level FRM exam program. Level I covers core areas of risk
management such as quantitative analysis, financial markets and products,
and essential risk modeling. Level II covers specific topics on the practical
implementation and execution of approaches to measuring and managing
market, credit, operational and firm-wide risks, and also includes a new
section covering current issues in financial markets.

Commencing in 2010, both Levels I and II will be offered to candidates every
May and November. The FRM Committee will continue to publish annually
the FRM Study Guide which will define the topics, readings, and test weights
for both the Level I and II programs for that year.

In this transition year, the FRM includes two options for November 2009.
Candidates can choose to take the last full FRM exam (candidates who
successfully pass this exam and have proper work experience will be
awarded the FRM designation) or the inaugural Level I exam (candidates
who successfully pass this exam will be eligible to sit for the Level II exam in
the future). The 2009 FRM Study Guide has been designed for the transition
to a two-level program and lists topics, readings, and test weights for the
two-level program.

Candidates opting to take the last full FRM exam will be tested on all topics
and readings listed in this Study Guide from both Levels I and II. The full
2009 FRM exam will be a 5-hour (2 2.5-hour sessions), 140 multiple choice
question exam.

From the Level I and II topics listed in this Study Guide, test
weights and question allocation for the full 2009 FRM exam will
be as follows:

Candidates opting to take the inaugural Level I FRM exam will be tested
on the Level I topics and readings listed in this Study Guide. The 2009
Level I FRM exam will be a 4-hour (2 2-hour sessions), 100 multiple choice
question exam.

The Study Guide sets forth primary topics and subtopics under
the five risk-related disciplines covered in the FRM exam. The
topics were selected by the FRM Committee as topics that risk
managers who work in practice today have to master. The topics
are reviewed yearly to ensure the FRM exam is kept timely
and relevant.

are derived from a combination of theory, as set forth in the readings, and \u201creal-world\u201d work experience. Candidates are expected to understand risk management concepts and

The FRM examination is also a comprehensive examination, test-
ing a risk professional on a number of risk management concepts
and approaches. It is very rare that a risk manager will be faced
with an issue that can immediately be slotted into one category.
In the real world, a risk manager must be able to identify any
number of risk-related issues and be able to deal with them
effectively.

Questions for the FRM examination are derived from the readings
listed under each topic outline. These readings were selected by
the FRM Committee to assist candidates in their review of the sub-
jects covered by the exam. It is strongly suggested that candidates
review these readings in depth prior to sitting for the exam.

TheFinancial Risk Manager Handbook, 5th edition, by Philippe Jorion (New York: John Wiley & Sons, 2009), covers most of the FRM examination topics at the appropriate level.However,

please note that the FRM Handbook was designed to help
candidates review the material and is not a textbook. Alone,
the FRM Handbook is not sufficient to prepare a candidate
to pass the examination.The FRM Handbook includes an

Some candidates may want to more formally review the materials
with FRM Course Providers. Course Providers are listed on the
GARP website. GARP does not endorse any Course Provider but
merely lists them as a service to FRM candidates.