FRM 2025 vs 2026 Curriculum Updates: What GARP Candidates Need to Know

FRM 2025 vs 2026 Curriculum Updates: What GARP Candidates Need to Know

The Financial Risk Manager (FRM) certification remains a gold standard for professionals seeking to demonstrate expertise in financial risk management. As we transition into 2026, understanding the FRM 2025 vs 2026 curriculum updates becomes crucial for candidates planning their exam strategy and study timeline.

GARP regularly refines the FRM curriculum to reflect evolving market dynamics, emerging risks, and regulatory developments. For candidates targeting the 2026 exam cycle, knowing exactly what has changed—and what hasn't—can make the difference between efficient preparation and wasted study hours.

Understanding the FRM 2025 vs 2026 Curriculum Updates

The updates between FRM 2025 and 2026 follow GARP's established pattern of maintaining curriculum stability in Part 1 while introducing more substantial changes in Part 2. This approach ensures that foundational risk concepts remain consistent while advanced topics reflect current market realities.

FRM Part 1: Stability with Strategic Refinements

The FRM 2025 vs 2026 curriculum updates for Part 1 demonstrate remarkable stability. Out of 62 total chapters, no new chapters have been added and none have been deleted. This continuity offers candidates a significant advantage in planning their preparation strategy.

Aspect	FRM 2025	FRM 2026
Total Chapters	62	62
New Chapters	None	None
Deleted Chapters	None	None
Chapters with LOS Changes	—	2 (Quantitative Analysis)
Nature of Changes	Descriptive focus	Descriptive + Calculative
Numerical Emphasis	Moderate	Slightly Higher (Quants)
Exam Pattern	100 MCQs	100 MCQs

However, subtle but important modifications appear in the Quantitative Analysis section. Two specific chapters have undergone Learning Outcome Statement (LOS) revisions that shift the examination focus from purely conceptual understanding toward practical application.

Hypothesis Testing now emphasizes calculation alongside description. Previously, candidates were expected to describe hypothesis testing concepts; the 2026 curriculum explicitly requires them to describe and calculate related metrics. This means exam questions will likely include numerical problems requiring candidates to compute and interpret p-values, test statistics, and confidence intervals.

Stationary Time Series has undergone more extensive refinement with five LOS modifications. These changes similarly expand the scope from theoretical knowledge to hands-on application. Candidates must now demonstrate proficiency in calculating time series models, interpreting results, and applying these concepts to real-world risk scenarios.

The practical implication of these FRM 2025 vs 2026 curriculum updates in Part 1 is clear: quantitative sections will feature more calculation-heavy questions. Candidates should allocate additional practice time to numerical problem-solving rather than relying solely on conceptual memorization.

FRM Part 2: Meaningful Restructuring Across Key Areas

The FRM 2025 vs 2026 curriculum updates for Part 2 are far more substantial, reflecting GARP's commitment to keeping advanced risk topics aligned with industry evolution. With 12 new chapters added and 9 chapters deleted, Part 2 presents a more significant shift in content and emphasis.

Aspect	FRM 2025	FRM 2026
Total Chapters	~100+	~100+
New Chapters	Limited	12
Deleted Chapters	Few	9
Major Change Areas	Credit Risk, Current Issues	Investment Risk, Current Issues
Investment Risk	Mostly stable	Significant restructuring
Current Issues	Updated	Updated (AI, Private Credit, Tokenization)
Credit Risk	Major earlier	Minor (1 LOS change)
Liquidity Risk	Stable	1 LOS + 1 chapter deleted
Overall Difficulty	High	High (more practical focus)
Exam Format	MCQs	MCQs

Investment Risk experiences the most dramatic transformation. Seven new chapters have been introduced, focusing heavily on alternative investments and private markets. New topics include private market investing, hedge fund risk management, distress symptoms in investments, and red flags that risk professionals must identify. These additions reflect the growing importance of alternative investments in institutional portfolios and the unique risks they present.

Notably, three older chapters have been removed from Investment Risk, including two relatively large chapters that contained 8-10 LOS each. This restructuring doesn't necessarily increase overall workload but does redirect focus toward more contemporary investment vehicles and risk assessment techniques.

Current Issues continues its annual refresh pattern, with five chapters deleted and five new chapters added. This section consistently evolves to address the most pressing risks facing financial institutions. For 2026, the emphasis includes artificial intelligence in risk management, private credit markets, tokenization of assets, and global financial stability concerns. Three chapters from 2025 remain unchanged, providing some continuity.

The focus on AI is particularly noteworthy, as machine learning and algorithmic risk management become increasingly central to financial institutions' operations. Understanding how AI introduces new risk dimensions while potentially mitigating others is now essential knowledge for FRM candidates.

Credit Risk and Liquidity Risk show minimal changes in the FRM 2025 vs 2026 curriculum updates. Credit Risk features just one LOS modification in the chapter on estimating default probabilities—likely a rewording rather than conceptual expansion. Liquidity Risk sees one LOS deleted and one minor chapter removed, changes that don't significantly impact the overall preparation approach.

Strategic Preparation Approach for 2026 Candidates

Understanding the FRM 2025 vs 2026 curriculum updates is only valuable if candidates adjust their preparation strategy accordingly. The most effective approach combines early preparation with flexible planning.

For Part 1 candidates, beginning with 2025 study materials is entirely appropriate given the minimal changes. Focus should intensify on numerical practice in Quantitative Analysis, particularly hypothesis testing and time series problems. Once 2026 materials are released, candidates can review the specific LOS modifications without disrupting their overall study plan.

For Part 2 candidates, a more strategic approach is necessary. Subjects like Market Risk, Credit Risk, and Liquidity Risk can be studied immediately using 2025 materials. For Investment Risk and Current Issues, candidates should focus on unchanged chapters first while waiting for official 2026 materials covering the new topics. Deleted chapters should be skipped entirely to avoid wasting valuable study time.

The phased approach maximizes preparation efficiency. By starting early with stable content and integrating new material as it becomes available, candidates maintain momentum while ensuring comprehensive coverage.

Conclusion

The FRM 2025 vs 2026 curriculum updates reveal GARP's continued commitment to maintaining a relevant, challenging certification that reflects real-world risk management demands. Part 1's stability with targeted quantitative enhancements provides a solid foundation, while Part 2's meaningful updates in Investment Risk and Current Issues ensure advanced candidates engage with contemporary market realities.

Success in the 2026 FRM exam requires understanding not just what has changed, but how these changes reflect the evolving risk landscape. Candidates who recognize the strategic implications of the FRM 2025 vs 2026 curriculum updates—and adjust their preparation accordingly—position themselves for exam success and career advancement in financial risk management.