GARP has released the 2026 FRM curriculum with targeted updates to Part 1 Quantitative Analysis and significant new readings in Part 2 — including five Current Issues topics on AI/ML, Private Credit, and Digital Resilience.
Part 1 changes for 2026 are contained entirely within the Quantitative Analysis domain. The reading count remains at 62 across all four domains, and topic weights are unchanged (20/20/30/30).
The most notable shift is in hypothesis testing. Previously, the learning objectives emphasized conceptual understanding — identifying Type I vs. Type II errors, interpreting p-values, and selecting appropriate tests. The 2026 curriculum now expects candidates to perform the actual calculations: computing test statistics, determining critical values, constructing confidence intervals, and executing one-tail and two-tail tests with numerical precision.
Additionally, the learning objectives around stationary time series have been reworded. The underlying content hasn't fundamentally changed, but the language is clearer about what candidates need to demonstrate — specifically, the ability to distinguish between stationary and non-stationary processes and apply appropriate tests (such as Dickey-Fuller) to determine stationarity.
Part 2 sees more significant changes. The total reading count has increased from 104 to 107, with additions concentrated in two domains: Risk Management and Investment Management, and Current Issues in Financial Markets.
The Risk Management and Investment Management domain expanded from 12 to 19 readings. The new readings deepen coverage of portfolio construction, factor-based investing, risk budgeting, and performance attribution. This domain's weight remains at 15%, so the added readings don't translate to more exam questions — but they broaden the pool of concepts GARP can test.
GARP refreshed the Current Issues domain with five entirely new readings reflecting the most pressing risks facing the financial industry. Six older readings were removed to keep the domain manageable. The domain weight stays at 10%.
Covers machine learning model risk, algorithmic bias, explainability challenges, and regulatory frameworks emerging around AI adoption in financial institutions.
Examines the rapid growth of private credit, valuation challenges for illiquid assets, systemic risk implications, and the blurring boundary between banking and non-bank lending.
Addresses how geopolitical events (sanctions, trade wars, armed conflict) transmit through financial markets, with frameworks for quantifying and hedging geopolitical exposures.
Explores risks in digital assets including custody risk, smart contract vulnerabilities, stablecoin reserves, and the potential of real-world asset tokenization.
Focuses on frameworks like the EU's DORA regulation, ICT risk management, third-party dependency risk, and operational resilience testing for financial institutions.
LOS reworded (hypothesis testing, time series)
| Domain | Weight | 2025 | 2026 | Notes |
|---|---|---|---|---|
| Foundations of Risk Management | 20% | 14 readings | 14 readings | No change |
| Quantitative Analysis | 20% | 13 readings | 13 readings | LOS reworded (hypothesis testing, time series) |
| Financial Markets and Products | 30% | 17 readings | 17 readings | No change |
| Valuation and Risk Models | 30% | 18 readings | 18 readings | No change |
| Total | 100% | 62 | 62 | Reading count unchanged |
+7 new readings
5 new, 6 deleted (−1 net); topic refresh
| Domain | Weight | 2025 | 2026 | Notes |
|---|---|---|---|---|
| Market Risk Measurement and Management | 20% | 17 readings | 17 readings | No change |
| Credit Risk Measurement and Management | 20% | 22 readings | 22 readings | No change |
| Operational Risk and Resilience | 20% | 15 readings | 15 readings | No change |
| Liquidity and Treasury Risk Measurement and Management | 15% | 17 readings | 17 readings | No change |
| Risk Management and Investment Management | 15% | 12 readings | 19 readings | +7 new readings |
| Current Issues in Financial Markets | 10% | 21 readings | 17 readings | 5 new, 6 deleted (−1 net); topic refresh |
| Total | 100% | 104 | 107 | +3 net new readings |
Part 1 (20/20/30/30) and Part 2 (20/20/20/15/15/10) domain weights are identical to 2025.
62 readings across all four domains — same as last year.
VaR, ES, GARCH, Black-Scholes, duration/convexity, credit risk models — all unchanged.
100 multiple-choice questions, 4 hours, computer-based testing at Pearson VUE centers.
For Part 1 candidates, the 2026 changes should not significantly alter your study plan. The shift toward calculation-focused hypothesis testing means you should spend more time working through numerical problems rather than relying on conceptual flashcards for this topic. Practice computing test statistics on your TI BA II Plus or HP 12C until the process is automatic. The time series LOS rewording doesn't introduce new content — it simply clarifies expectations that were already implicit.
Part 2 candidates face a more meaningful adjustment. The five new Current Issues readings cover topics that many candidates will encounter for the first time in their FRM studies. AI/ML risk management, in particular, draws on concepts outside traditional finance — model validation for machine learning, algorithmic fairness, and explainability. Allocate dedicated study time for these new topics rather than treating them as light reading. Similarly, the Private Credit reading requires understanding non-bank lending structures that differ significantly from traditional credit risk frameworks.
Despite the new readings, domain weights haven't changed. Current Issues remains 10% of Part 2, so don't over-allocate time to new topics at the expense of high-weight domains like Market Risk and Credit Risk (20% each). A balanced approach is key: cover the new material thoroughly, but keep your study time roughly proportional to each domain's weight. Pairing updated formulas with practice is critical — consult our FRM Part 2 formula sheet alongside your reading to reinforce quantitative concepts.
PrepAscend's question bank, AI coach, and adaptive study engine are already updated for the 2026 FRM curriculum. Build your personalized study plan today.
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