2018: Part 2 New and Updated Published Materials

[Nicole Seaman]

This thread is to give our members a quick reference to the new and updated Part 2 materials that we publish throughout the 2018 exam period. We include the date that the materials were updated or published so you know that you are using the most up-to-date materials.

Please make sure to read our publishing process thread here before asking questions about if and when specific materials will be published: https://forum.bionicturtle.com/threads/publishing-process-for-2018.13308/. Thank you

Market Risk Measurement & Management

Reading 35: Dowd, Chapters 3 & 4

• Study Notes (updated 01/25/18)
  • (02/22/18 page 10 fixed only. Updated to version 11-1)
• Question Set (updated to v7.3 - corrected forum errors 04/19/18)
  • 707.3
  • 710.1
  • 711.2
  • 77.5
• Instructional Video Chapter 3 (updated 02/02/18)
• Instructional Video Chapter 4 (updated 02/07/18)

Reading 36: Jorion, Chapters 6 & 11

• Question Set (updated with new practice questions 01/17/18)
  • (01/22/18 error fixed on page 25 only. Updated to version 9.1)
  • (01/23/18 errors fixed on page 29 question 715.2 & page 32 question 716.2. Updated to version 9.2)
  • (08/10/18 errors fixed in PQs: L2.T5.63, L2.T5.60, P2.T5.715 and P2.T5.716. Updated to version 9.3)
• Instructional Video, Chapter 6 (published 07/06/18)
• Instructional Video, Chapter 11 (published 07/20/18)

Reading 38: Meissner, Chapters 1, 2, 3 & 4

• Study Notes (updated 01/30/18)
• Instructional Video, Chapter 1 (published 02/09/18)
• Instructional Video, Chapter 2 (published 02/13/18)
• Instructional Video, Chapter 3 (published 02/16/18)
• Instructional Video, Chapter 4 (published 02/21/18)
• Learning Spreadsheet (published 03/01/18)

Topic Review

• T5 Interactive Quiz (updated pdf to v5.5 and quiz to fix error noted in forum) (04/19/18)

Credit Risk Measurement & Management

Reading 41: Golin, Chapters 1 & 2

• Instructional Video, Chapter 1 (published 03/14/18)
• Instructional Video, Chapter 2 (published 03/16/18)

Reading 43: Stulz, Chapter 18

• Question Set (updated 02/12/18 to v7 to fix mistake on page 6 only)

Reading 44: Malz Chapters 7, 8 & 9

• Question Set (updated 03/01/18 ONLY fixed errors)

Reading 45: Gregory, Chapters 4, 5, 6, 7, 9, 12, 14 & 17

• Study Notes (completely updated 03/14/18)
• Instructional Video, Chapter 4 (published 03/22/18)
• Instructional Video, Chapter 5 (published 04/03/18)
• Instructional Video, Chapter 6 (published 04/03/18)
• Instructional Video, Chapter 7 (published 04/05/18)
• Instructional Video, Chapter 9 (published 04/06/18)
• Instructional Video, Chapter 12 (published 04/13/18)
• Instructional Video, Chapter 14 (published 04/13/18)
• Instructional Video, Chapter 17 (published 04/18/18)

Operational & Integrated Risk Mangement

Reading 50, Principles for the Sound Management of Operational Risk

• Question Set (published 06/14/18)

Reading 52: Observations on Developments

• Question Set (published 06/23/18)

Reading 55: Girling, Chapters 8 & 12

• Question Set (errors updated from forum 04/19/18)

Reading 57: Dowd, Chapter 7

• Practice question set (updated 07/20/18)

Reading 61: Capital Planning

• Question Set (published 07/31/18)

Reading 63: Dowd, Chapter 14

• Question Set (updated 09/11/18)

Reading 64: Malz, Chapters 11 & 12

• Instructional Video, Chapter 11 (published 02/23/18)
• Instructional Video, Chapter 12 - Video 1 (published 03/07/18)
• Instructional Video, Chapter 12 - Video 2 (published 03/07/18)
• Instructional Video, Chapter 12 - Video 3 (published 03/09/18)
• Study Notes (updated 03/09/18 to v9.2 - errors fixed)

Reading 65: Duffie, Failure Mechanics of Dealer Banks

• Question Set (published 09/11/18)

Reading 68, Hull, Chapters 15, 16, & 18

• Study Notes (updated 03/02/18)
• Instructional Video, Chapter 15 (published 06/27/18)
• Instructional Video, Chapter 16 (published 07/03/18)
• Instructional Video, Chapter 18 (published 07/05/18)

Reading 69: Sound Management of Risks: Money Laundering and Financing of Terrorism

• Study Notes (published 01/30/18)

Risk Management & Investment Management

Reading 72, Jorion, Chapters 7 & 17

• Jorion, Chapter 7 Instructional Video (updated 06/06/18)
• Jorion, Chapter 17 Instructional Video (updated 06/08/18)

Current Issues

Reading 77, Cohen-credit-loss-provisioning

• Study Notes (published 12/13/17)
• Question Set (published 01/31/18)

Reading 78, Varian-econometrics

• Study Notes (published 12/13/17)
• Question Set (published 02/08/18)

Reading 79, VanLiebergen-machine-learning

• Study Notes (published 12/13/17)
• Question Set ( published 02/15/18)

Reading 80, Cont-central-clearing

• Study Notes (published 12/13/17)
  • Updated 09/21/18 to v5.1 (only updated last page with revised image)
• Question Set (published 02/21/18)
  • Updated 05/03/18 to v5.1 (only updated page 5 with revised image)

Reading 81, Song-Shin-capital-bank-markets

• Study Notes (published 01/02/18)
• Question Set (published 02/28/18)

Reading 82, FinTech-market-structure

• Study Notes (published 01/04/18)
• Question Set (published 03/07/18)

Reading 83, Lo, The Gordon Gekko Effect: The Role of Culture in the Financial Industry

• Study Notes (published 01/19/18)
• Practice Question Set (published 03/15/18)

Part 2 Review

• Interactive Mock Exam G (published 05/17/18)

 

[Mace]

Hi Nicole,
I know it's super early and I don't mean to be pushy at all, but just for purposes of my planning (I'll have a big absence in April so will need to study beforehand), when do you usually publish the updated Current Issues materials?
Thanks!

 

[Nicole Seaman]

Hi Nicole,
I know it's super early and I don't mean to be pushy at all, but just for purposes of my planning (I'll have a big absence in April so will need to study beforehand), when do you usually publish the updated Current Issues materials?
Thanks!

Hello @Mace,

Although we cannot provide specific dates that we will be publishing materials, we usually prepare and publish the Current Issues materials early on in the exam period. They will certainly be published well before April.

Thank you,

Nicole

 

[Karim_B]

Hi @Nicole Seaman
I ended up deferring the Nov 2017 part II exam, and will now be taking the May 2018 exam. I had downloaded the materials for Topics 5 & 6 and am going through this thread and https://forum.bionicturtle.com/threads/2017-part-2-new-and-updated-published-materials.10050/ to ensure I have the latest versions.

However I noticed a couple of materials which seem to have been updated although I can't find their updates noted in the threads.

1) Topic 5 Reading 40: Hull, Chapters 9 & 20

The last update in the thread is:

• Study Notes (updated 12/05/16)

However it seems the Question Set was also updated since.

What I see now in the study planner is:
R40-P2-T5-Hull-Q-Set_1-8-409-411-506-507-Ch20.pdf

I had previously downloaded the following on 16-Aug-2017
R41.P2.T5.Hull_Q-Set_v8.1_5993dcf814fdb.pdf


2) Topic 5 Review - Market Risk Quiz

The last update in the thread is:

• Interactive Quiz (published 07/20/17)

What I see now in the study planner is v5.4:
P2-T5-Market-Risk-Quiz-700-706_v5.4_5a51cbda6.pdf

I had previously downloaded v5.2 on 16-Aug-2017 after the last published update on 20-Jul-2017:
P2-T5-Market-Risk-Quiz-700-706_v5.2_5993dfc632ad4.pdf


I wanted to confirm the threads contain the latest updates please.
Thanks
Karim

 

[Nicole Seaman]

Hi @Nicole Seaman
I ended up deferring the Nov 2017 part II exam, and will now be taking the May 2018 exam. I had downloaded the materials for Topics 5 & 6 and am going through this thread and https://forum.bionicturtle.com/threads/2017-part-2-new-and-updated-published-materials.10050/ to ensure I have the latest versions.

However I noticed a couple of materials which seem to have been updated although I can't find their updates noted in the threads.

1) Topic 5 Reading 40: Hull, Chapters 9 & 20

The last update in the thread is:

• Study Notes (updated 12/05/16)

However it seems the Question Set was also updated since.

What I see now in the study planner is:
R40-P2-T5-Hull-Q-Set_1-8-409-411-506-507-Ch20.pdf

I had previously downloaded the following on 16-Aug-2017
R41.P2.T5.Hull_Q-Set_v8.1_5993dcf814fdb.pdf


2) Topic 5 Review - Market Risk Quiz

The last update in the thread is:

• Interactive Quiz (published 07/20/17)

What I see now in the study planner is v5.4:
P2-T5-Market-Risk-Quiz-700-706_v5.4_5a51cbda6.pdf

I had previously downloaded v5.2 on 16-Aug-2017 after the last published update on 20-Jul-2017:
P2-T5-Market-Risk-Quiz-700-706_v5.2_5993dfc632ad4.pdf


I wanted to confirm the threads contain the latest updates please.
Thanks
Karim

Hello @Karim_B

At the beginning of each year, I go through the entire study planner and update documents to reflect any changes in title, reading number, chapter removals, etc. This is done even before we update actual content. These new documents are uploaded to the study planner. If there are actual content updates that are added to the document, this is reflected in the Update threads, along with the date that the update or change was made (and a page number if necessary). I do not list any minor changes that were made to a document (such as a reading number or title change) in the update threads. If there are changes in the actual content, you will find those in the update threads.

• Regarding Topic 5 Reading 40: Hull, Chapters 9 & 20: If you look at the updated curriculum, you will see that Chapter 9 is no longer part of the curriculum, so this document reflects that. The Chapter 9 questions were moved to an appendix to reflect that only Chapter 20 remains in the curriculum in 2018.
• Regarding the T5 Interactive Quiz: If you look at the forum threads that are included in the document, you will see that there were small typos/errors pointed out. Those have been fixed in the document.

Thank you,

Nicole

 

[Karim_B]

Hello @Karim_B

At the beginning of each year, I go through the entire study planner and update documents to reflect any changes in title, reading number, chapter removals, etc. This is done even before we update actual content. These new documents are uploaded to the study planner. If there are actual content updates that are added to the document, this is reflected in the Update threads, along with the date that the update or change was made (and a page number if necessary). I do not list any minor changes that were made to a document (such as a reading number or title change) in the update threads. If there are changes in the actual content, you will find those in the update threads.

• Regarding Topic 5 Reading 40: Hull, Chapters 9 & 20: If you look at the updated curriculum, you will see that Chapter 9 is no longer part of the curriculum, so this document reflects that. The Chapter 9 questions were moved to an appendix to reflect that only Chapter 20 remains in the curriculum in 2018.
• Regarding the T5 Interactive Quiz: If you look at the forum threads that are included in the document, you will see that there were small typos/errors pointed out. Those have been fixed in the document.

Thank you,

Nicole

Thanks @Nicole Seaman
I think a change in focus of the reading like the Hull example would be a useful one to point out

Thanks for confirming the types of changes.
Karim

 

[Nicole Seaman]

Thanks @Nicole Seaman
I think a change in focus of the reading like the Hull example would be a useful one to point out

Thanks for confirming the types of changes.
Karim

Hello Karim,

This is the reason that GARP provides a Study Change Guide and we create a Curriculum Change Analysis Spreadsheet every single year. We expect that all FRM candidates make sure they are aware of the changes in the curriculum so they can create a study plan for themselves. We work very hard to update the materials every year and to provide sufficient information about the changes in the curriculum, but we do expect that candidates put forth the effort to make sure they know what has changed in the curriculum when they begin their studies in a new year. Every year starts out as a new year in the Study Planner. We will continue to provide our list of newly published materials and major changes of documents when they have been updated throughout 2018.

Thank you,

Nicole

 

[jamietay]

Dear Nicole,

For Gregory, Counterparty Credit Risk, I understand that the Chapters have been updated to 4, 5, 7, 9, 12, 14 & 17 but your sub-header is still showing the old Chapters. I presume no changes in terms of content. Kindly advise. TQ

 

[Nicole Seaman]

Dear Nicole,

For Gregory, Counterparty Credit Risk, I understand that the Chapters have been updated to 4, 5, 7, 9, 12, 14 & 17 but your sub-header is still showing the old Chapters. I presume no changes in terms of content. Kindly advise. TQ

Hello @jamietay,

Actually, Gregory was one of the few readings in the curriculum this year that had MANY changes. We will be completely revising this document to coincide with the 2018 curriculum as soon as possible. You can see all of the changes in the curriculum for Part 2 here: https://www.dropbox.com/s/eim5oce1rk2wcvq/P2 2010 thru 2018 AIM Comparison_v1.xlsx. We also post this in the forum under the Announcements section to help our members plan since we update materials throughout the exam period. I will update here once Gregory has been updated.

Thank you,

Nicole

 

[oldfed]

Hi everybody,

I would like to take the opportunity offered by that thread about "new and updated material" to ask for help about the best way to understand how topic 9 "current issues" is released and published by GARP.

I read that thread, the curriculum and its LOS, visited GARP site and looked over briefly the content of their books (no book dedicated to topic 9) but I am still stuck with my issue:

I do not understand how that topic's content is organized through the curriculum. If anyone would like to enlighten me?

 

[Nicole Seaman]

Hi everybody,

I would like to take the opportunity offered by that thread about "new and updated material" to ask for help about the best way to understand how topic 9 "current issues" is released and published by GARP.

I read that thread, the curriculum and its LOS, visited GARP site and looked over briefly the content of their books (no book dedicated to topic 9) but I am still stuck with my issue:

I do not understand how that topic's content is organized through the curriculum. If anyone would like to enlighten me?

Hello @oldfed

I'm not sure that I understand your question ("I do not understand how that topic's content is organized through the curriculum. If anyone would like to enlighten me?") but I want to help clear things up for you if I can. Are you asking where to find the source readings for the T9 readings since GARP does not provide a book for T9? I am happy to answer your questions if you can clarify what it is you are asking.

Thanks,

Nicole

 

[oldfed]

Hello @oldfed

I'm not sure that I understand your question ("I do not understand how that topic's content is organized through the curriculum. If anyone would like to enlighten me?") but I want to help clear things up for you if I can. Are you asking where to find the source readings for the T9 readings since GARP does not provide a book for T9? I am happy to answer your questions if you can clarify what it is you are asking.

Thanks,

Nicole

Thanks you for the answer,

I agree: The question is not clear at all! And you're right, we can sum up my question with:

Where to find the source readings for the T9 readings since GARP does not provide a book for T9?
An add question would be: Does the content of that topic 9 will be further updated by GARP or is it definitive?

Hope it's clearer that time.

 

[David Harper CFA FRM]

Hi @oldfed Nicole is checking on whether the T9 source readings are posted by GARP (they used to do this and maybe they will be forthcoming); I think our own T9 Study Notes are almost finshed FWIW.

Re: Does the content of that topic 9 will be further updated by GARP or is it definitive?

The T9 readings are definitive (finished, if that is what you mean?) for the current year 2018. But GARP tends to change all T9 readings each year. As GARP knows, I disagree with this approach. To illustrate why, last year (2017) had a fabulous reading on Bitcoin. It's dropped and this year contains no crytopcurrency readings. Is cryptocurrency less relevant in 2018 than 2017? Further, writing great questions (i.e., assessment) is an art and science that requires seasoned mastery of the material and a feedback cycle. It's very hard to write great questions against material that churning too fast (as GARP knows in its own occasional struggle to write perfect questions against material that's even well-seasoned). We have a great relationship with GARP, and we are proud of that. I've asked for clarification on the role of T9 in the syllabus, with an emphasis on my opinion that swapping out 100% of T9 every single year is too fast. I am not convinced GARP as administrator can stay ahead of these readings with high-quality (exam-level) questions; typically, exam-level questions need to be beta tested, carefully vetted over a cycle, etc. I hope that's helpful,

 

[Nicole Seaman]

Thanks you for the answer,

I agree: The question is not clear at all! And you're right, we can sum up my question with:

Where to find the source readings for the T9 readings since GARP does not provide a book for T9?
An add question would be: Does the content of that topic 9 will be further updated by GARP or is it definitive?

Hope it's clearer that time.

Hello @oldfed

Thank you for clarifying your questions. GARP provides the source readings here on their website under FRM>Study Materials: http://garp.org/#!/frm/readings. I will also be publishing the final set of study notes in the Study Planner for Topic 9 today. I hope this helps!

Nicole

 

[oldfed]

Hello @oldfed

Thank you for clarifying your questions. GARP provides the source readings here on their website under FRM>Study Materials: http://garp.org/#!/frm/readings. I will also be publishing the final set of study notes in the Study Planner for Topic 9 today. I hope this helps!

Nicole

Really clear now. Thanks!

 

[oldfed]

Hi @oldfed Nicole is checking on whether the T9 source readings are posted by GARP (they used to do this and maybe they will be forthcoming); I think our own T9 Study Notes are almost finshed FWIW.

Re: Does the content of that topic 9 will be further updated by GARP or is it definitive?

The T9 readings are definitive (finished, if that is what you mean?) for the current year 2018. But GARP tends to change all T9 readings each year. As GARP knows, I disagree with this approach. To illustrate why, last year (2017) had a fabulous reading on Bitcoin. It's dropped and this year contains no crytopcurrency readings. Is cryptocurrency less relevant in 2018 than 2017? Further, writing great questions (i.e., assessment) is an art and science that requires seasoned mastery of the material and a feedback cycle. It's very hard to write great questions against material that churning too fast (as GARP knows in its own occasional struggle to write perfect questions against material that's even well-seasoned). We have a great relationship with GARP, and we are proud of that. I've asked for clarification on the role of T9 in the syllabus, with an emphasis on my opinion that swapping out 100% of T9 every single year is too fast. I am not convinced GARP as administrator can stay ahead of these readings with high-quality (exam-level) questions; typically, exam-level questions need to be beta tested, carefully vetted over a cycle, etc. I hope that's helpful,

Thank you. It's perfectly clear. I am getting now what is GARP's approach concerning that topic.

I suppose that the 100% swapping out is even more frustrating for prep providers than it is for candidates.

 

[David Harper CFA FRM]

@oldfed actually T9 doesn't give us too much trouble, we've been writing PQs for over a decade and frankly know the corpus, primarily via 10+ years of forum interaction with candidates and practitioners, better than GARP. What I sincerely care about is learning and mastery. For example, these 2018 T9 LOs seem like extremely vital topics (i.e., kudos to GARP for the concept selection!)

• Describe the process of machine learning and compare machine learning approaches.
• Describe the application of machine learning approaches within the financial services sector and the types of problems to which they can be applied.
• Analyze the application of machine learning in three use cases: Credit risk and revenue modeling; Fraud; Surveillance of conduct and market abuse in trading

So my two concerns (questions) about this sort of T9 reading are:

1. Like bitcoin, why is the relevance limited to the fleeting randomness of one year, only 2017 or 2018, but not 2019?
2. By what methodology (and by whose expertise exactly) will great questions be written (and asked on the exam) so as to reinforce actual topic mastery? GARP's track record on the published practice questions for even deeply seasoned topics is mixed and virtually non-existent for fleeting T9. From a purely learning standpoint, and as relates to career-related aspirations, I believe T9 needs to be taken more seriously. For what it's worth ....

 

[jamietay]

Dear Nicole,

Would like to check whether there's going to be Question Set for the new addition i.e. Sound Management of Risks related to Money Laundering and Financing of Terrorism under "Operational and Integrated Risk Management"?

 

[Nicole Seaman]

Dear Nicole,

Would like to check whether there's going to be Question Set for the new addition i.e. Sound Management of Risks related to Money Laundering and Financing of Terrorism under "Operational and Integrated Risk Management"?

Hello @jamietay

Please see my original post in this thread, which includes a link for our Publishing Process thread in the forum. We publish as many new and updated materials as possible each year, but we cannot guarantee that a specific set of materials will be published. We generally try to publish question sets for new materials, but before David spends hours writing questions for one reading, he determines which question sets take priority in the curriculum.

Thank you,
Nicole

 

[Geronimo29]

Hi All, thanks for all these informations. Just one quick question: do you know if material about the new topic in Ops risk and Credit risk will be published? Ie, Sound management of risks related to money Laundering and financing of terrorism; and Counterparty Risk intermediation? Sorry if this question has been answered already. Thanks!