The Financial Risk Manager (FRM) Exam is a rigorous exam and tests your knowledge on four topics:

- Foundations of Risk Management
- Quantitative Analysis
- Financial Markets and Products
- Valuation and Risk Models

For each of these topics, GARP prescribes reading material which is essentially a collection of chapters taken from different books. To prepare for FRM exam you can buy these readings and that’s sufficient. However, it may be a good idea to buy the full books as they are a very good set of books which will always be good reference for any risk manager. Below I have listed all the books that you need to prepare for FRM Exam Part 1.

## Foundations of Risk Management

Modern Portfolio Theory and Investment Analysis

Portfolio Theory and Performance Analysis (The Wiley Finance Series)

Risk Management in Finance: Six Sigma and other Next Generation Techniques (Wiley Finance)

Financial Risk Management: A Practitioner’s Guide to Managing Market and Credit Risk (Wiley Finance)

## Quantitative Analysis

Mathematics and Statistics for Financial Risk Management (Wiley Finance)

Introduction to Econometrics (3rd Edition) (Addison-Wesley Series in Economics)

Value at Risk: The New Benchmark for Managing Financial Risk, 3rd Edition

Options, Futures, and Other Derivatives and DerivaGem CD Package (8th Edition)

## Financial Markets and Products

Options, Futures, and Other Derivatives and DerivaGem CD Package (8th Edition)

Derivatives Markets (3rd Edition) (Pearson Series in Finance)

Commodities and Commodity Derivatives: Modelling and Pricing for Agriculturals, Metals and Energy

The Handbook of Fixed Income Securities, Eighth Edition

Managing Credit Risk: The Great Challenge for Global Financial Markets (Wiley Finance)

## Valuation and Risk Models

Understanding Market, Credit, and Operational Risk: The Value at Risk Approach

Options, Futures, and Other Derivatives and DerivaGem CD Package (8th Edition)

Fixed Income Securities: Tools for Today’s Markets (Wiley Finance)

Managing Credit Risk: The Great Challenge for Global Financial Markets (Wiley Finance)

Measuring and Managing Credit Risk

Internal Credit Risk Models: Capital Allocation and Performance Measurement

Risk Management and Financial Institutions, + Web Site (Wiley Finance)

Value at Risk: The New Benchmark for Managing Financial Risk, 3rd Edition

*You can purchase these books from Amazon by clicking the links above.*