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Key Concepts- FRM Level 2


New Member
Hi David,

You must have seen this question n number of times.. but as an FRM Level 2 candidate, I wanted to know the most important topics (by weightages) that can be tackled first.

Would appreciate if you can break down by Credit Risk, Market Risk, Operational Risk etc..

I will be appearing for the FRM Level 2 exam this November.

thank you,


Exactly same question.

Right now i'm going through Market Risk and in first 9 chapters not able to get jest of the topic. Don't know how important are these topics for the exam. Still not started for other topics :(


New Member
I don't want to sound mean or anything but why not just assume that everything is important and plan accordingly?


Active Member

well this is one of the questions which (in my opinion) can't be answered with a simple list of topics which will be 100% the most important and on the other hand topics which can be discarded for sure, as the curriculum constantly gets changed.

For a starter have a look at the following reviews which David has written and which are from my perspective very helpful (please keep in mind though that some readings may not be the most current, as the reviews were written some time ago - BUT the idea of the summary is relevant, that is how were the "important" topics selected):


Also look at the video reviews (if you have access to them) from all major topic groups (market risk, credit risk etc.)

And from then on this could help:
  • Going through Practice Questions from BT (it can be assumed that after all the years of practice topics which are not dealt with in Practice Questions are not very relevant, right? I mean there has to be some kind of working assumption, that's just my take)
  • Going through Practice Exams from GARP and Mock Exams from BT - if you see some type of question/exercise repeating itself and probably also over the years, then it can be safely assumed there is a key concept behind it
  • Use some common sense when studying the notes - formulae which at the first glance seem "complicated" and require lots of parameters and calculation time have a low chance of being tested in the exam, after all there is strict time restraint. This doesn't necessarily mean if a formula looks complicated then it won't for sure be tested by GARP, but as I have written above some working assumptions have to be made in order to cover the topics.
  • And so on...
I hope this helps somehow.


New Member
Thanks a lot guy!!. In fact the question I posted yesterday on identifying key chapters( AIMS) is just to get just the ball rolling in the right direction.. while, all the readings are important from FRM's point of view, it is always good to know which topics are surely to be tested...

That way you feel good and comfortable knowing that you are already tackling the key readings..