Market Risk Measurement And Management (MR)

• 1 Reading Deleted
• 3 Readings Added
• 7 Readings Reordered
• 3 Readings Renamed and Reordered
• 1 LO added, 1 LO Deleted and 2 LOs modified for existing Readings

Deleted Readings	Newly Added Readings
MR 6 – Messages from the academic literature on risk measurement for the trading book	MR 6 – Validating Bank Holding Companies’ Value-at-Risk Models for Market Risk
	MR 7 – Beyond Exceedance-Based Backtesting of Value-at-Risk Models: Methods for Backtesting the Entire Forecasting Distribution Using Probability Integral Transform
	MR 16 – The Vasicek and Gauss+ Models

List of Re-Ordered Readings

Current Reading	Previous Reading
MR 8 – Correlation Basics: Definitions, Applications, and Terminology	Previously MR 7
MR 9 – Empirical Properties of Correlation: How Do Correlations Behave in the Real World?	Previously MR 8
MR 10 – Financial Correlation Modeling: Bottom-Up Approaches	Previously MR 9
MR 14 – The Art of Term Structure Models: Drift	Previously MR 13
MR 15 – The Art of Term Structure Models: Volatility and Distribution	Previously MR 14
MR 17 – Volatility Smiles	Previously MR 15
MR 18 – Fundamental Review of the Trading Book	Previously MR 16

List of Renamed as well as Reordered Readings

Current Reading	Earlier Known As
MR 11 – Regression Hedging and Principal Component Analysis (2025)	MR 10 – Empirical Approaches to Risk Metrics and Hedging (2024)
MR 12 – Arbitrage Pricing with Term Structure Models	MR 11 – The Science of Term Structure Models (2024)
MR 13 – Expectations, Risk Premium, Convexity, and the Shape of the Term Structure	MR 12 – The Evolution of Short Rates and the Shape of the Term Structure

Chapter	Old Learning Objective	Newly Added Learning Objective
MR 5 – Backtesting VaR	Explain and demonstrate how the mapping process captures general and specific risks.	Explain how the mapping process captures general and specific risks, and calculate these risks in a portfolio given a set of primitive risk factors.
MR 11 – Regression Hedging and Principal Component Analysis	N/A (Newly Added Objective)	Explain why and how a regression hedge differs from a hedge based on a reverse regression.
MR 13 – Expectations, Risk Premium, Convexity, and the Shape of the Term Structure	Evaluate the impact of changes in maturity, yield, and volatility on the convexity of a security.	Identify the components into which the return on a bond can be decomposed, and calculate the expected return on a bond for a risk-averse investor.

Credit Risk Measurement And Management (CR)

• No Readings Deleted
• No Readings Added
• 1 LO modified for existing Readings

Chapter	Old Learning Objective	Newly Added Learning Objective
CR 5 – Introduction to Credit Risk Modeling and Assessment	Estimate capital adequacy ratio of a financial institution.	Estimate risk-weighted assets and capital adequacy ratio of a financial institution.

Operational Risk And Resilience (OR)

• No Readings Deleted
• No Readings Added

Liquidity And Treasury Risk Measurement And Management (LR)

• No Readings Deleted
• No Readings Added
• 1 LO Deleted and 2 LOs modified for existing Readings

Chapter	Old Learning Objective	Newly Added Learning Objective
LR 5 – Liquidity and Reserves Management: Strategies and Policies	Summarize the process taken by a U.S. bank to calculate its legal reserves.	Deleted
LR 16 – US Dollar Shortage in Global Banking and International Policy Response	Discuss how central bank swap agreements overcame challenges commonly associated with international lenders of last resort.	Describe the policy response by international central banks to alleviate the US dollar shortage and assess its effectiveness.
LR 19 – Illiquid Assets	Evaluate portfolio choice decisions on the inclusion of illiquid assets.	Evaluate the impact of allocating illiquid assets to a portfolio, including the impact on rebalancing and trading and on optimizing the proportion of illiquid assets.

Risk Management And Investment Management(IM)

• No Readings Deleted
• No Readings Added
• 2 LOs modified for existing Readings

Chapter	Old Learning Objective	Newly Added Learning Objective
IM 4 – Portfolio Construction	Distinguish among the inputs to the portfolio construction process.	Describe the inputs to the portfolio construction process and explain challenges faced when using these inputs.
IM 5 – Portfolio Risks: Analytical Methods	Explain the risk-minimizing position and the risk and return-optimizing position of a portfolio.	Explain and calculate the risk-minimizing position and position that maximizes the ratio of expected return to risk.

Current Issues In Financial Markets (CI)

• 9 Readings Deleted
• 8 Readings Added

Deleted Readings	Newly Added Readings
CI 1 – Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank	CI 1 – 2023 Bank Failures, Preliminary lessons learnt for resolution
CI 2 – The Credit Suisse CoCo Wipeout: Facts, Misconceptions, and Lessons for Financial Regulation	CI 2 – Generative Artificial Intelligence in Finance: Risk Considerations
CI 3 – Artificial Intelligence and Bank Supervision	CI 3 – Artificial intelligence and the economy: implications for central banks
CI 4 – Financial Risk Management and Explainable, Trustworthy, Responsible AI	CI 4 – Interest Rate Risk Management by EME Banks
CI 5 – Artificial Intelligence Risk Management Framework	CI 5 – Laying a robust macro-financial foundation for the future
CI 6 – Climate-Related Risk Drivers and their Transmission Channels	CI 6 – The Last Mile: Financial Vulnerabilities and Risks, Reading 2: The Rise and Risks of Private Credit
CI 7 – Climate-Related Financial Risks – Measurement Methodologies	CI 7 – Monetary and fiscal policy: safeguarding stability and trust
CI 8 – Principles for the Effective Management and Supervision of Climate-Related Financial risks	CI 8 – Regulating the Crypto Ecosystem: The Case of Unbacked Crypto Assets
CI 9 – The Crypto Ecosystem: Key Elements and Risks

Summary

• 11 new readings have been added (3 in MR + 8 in CI)
• 10 new readings have been deleted (1 in MR + 9 in CI)

Total 104 Readings (Previously 103 in 2024)

In existing Readings –

• 1 LO has been added
• 2 LOs have been deleted
• 7 LOs have been modified