FRM · Elective

Financial Risk Management

Financial Risk Management focuses on identifying market, liquidity, and financing risks and the tools used to measure and manage them — including derivatives and hedge thinking, plus control of the risk function.

Who it's for

Candidates in treasury, corporate finance, banking, or FP&A roles that touch funding and market risk.

Exam format

Multiple-choice questions only (per CPA Australia).

Module map

  1. M1: Introduction to Financial Risk Management
  2. M2: Management of Liquidity, Debt and Equity
  3. M3: Financing and Evaluating Investments
  4. M4: Derivatives
  5. M5: Interest Rate Risk Management
  6. M6: Foreign Exchange and Commodity Price Risk Management
  7. M7: Accounting for Derivatives and Hedge Relationships
  8. M8: Controlling Risks

Study tips

  • Separate economic hedge intent from accounting hedge criteria — exams love that gap.
  • Sketch cash-flow timelines for rate and FX scenarios before calculating.
  • Drill derivatives identification (forwards, futures, options, swaps) until payoffs are automatic.
  • Finish with governance/controls modules; they often decide close MCQs.

FRM Key Terms Index

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