How to Study for FRM Part II: Complete Guide and Study Plan
To prepare for FRM Part II, start once your Part I tools are solid, then work through all six areas, giving market and credit risk the most study time. A practical plan is about 20 weeks at 12 to 15 hours per week, ending with full 80-question, 4-hour mock exams.
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What is the FRM Part 2?
FRM Part II is the second exam for the Financial Risk Manager (FRM) certification from the Global Association of Risk Professionals (GARP). It is a 4-hour, computer-based exam delivered at test sites worldwide, with 80 equally weighted multiple-choice questions covering Market Risk, Credit Risk, Operational Risk and Resilience, Liquidity and Treasury Risk, Risk Management and Investment Management, and Current Issues in Financial Markets. Results are reported as pass or fail plus quartile results, within eight weeks after the testing window closes. Part II builds directly on the tools covered in Part I.
Who it is for
FRM Part II is for candidates who have passed FRM Part I, and it must be passed within four years of passing Part I. It suits risk analysts, model validators, treasury and ALM staff, credit officers, and portfolio risk professionals who want to complete the FRM. After passing, certification also requires 2 years of relevant full-time work experience, submitted within 10 years of sitting Part II.
FRM Exam Part II at a glance
| Administered by | Global Association of Risk Professionals (GARP) |
|---|---|
| Who it is for | Candidates who have passed FRM Part I; Part II must be passed within four years of passing Part I. |
| Delivery | Computer-based testing at test sites worldwide. |
| Total time | 4 hours. |
| Sections | 80 equally weighted questions covering Market Risk, Credit Risk, Operational Risk and Resilience, Liquidity and Treasury Risk, Risk Management and Investment Management, and Current Issues in Financial Markets. |
| Question types | Multiple choice. |
| Scoring | Pass/fail plus quartile results; results within eight weeks after the window closes. Certification also requires 2 years of relevant full-time work experience, submitted within 10 years of sitting Part II. |
| Fee | US$600 early / US$800 standard (2027 windows). |
| When offered | May, August and November. 2027 Part II: May 15-17, Aug 13-14 (PM), Nov 20-22. |
| Recent changes | November 2025 Part II pass rate: 50%. |
Source: Global Association of Risk Professionals (GARP), checked October 21, 2026. Fees and policies change: confirm with the official site before you register.
What is tested
- Market Risk Measurement & Management: VaR and expected shortfall estimation, backtesting, correlation and volatility modeling, term structure models, and market risk capital. The key skill is choosing a measurement approach and recognizing its weaknesses in a given portfolio.
- Credit Risk Measurement & Management: Default probability, loss given default, credit portfolio models, counterparty credit risk, credit valuation adjustments, securitization, and credit derivatives. The key skill is quantifying credit exposure and judging how mitigation changes it.
- Operational Risk & Resilience: Operational risk frameworks, loss data, scenario analysis, model risk, cyber and third-party risk, and operational resilience. The key skill is identifying the control or governance failure in a scenario and the right response.
- Liquidity & Treasury Risk: Funding and market liquidity risk, liquidity stress testing and regulatory liquidity ratios, asset-liability management, and funds transfer pricing. The key skill is reading a balance sheet for liquidity mismatches and choosing a remedy.
- Risk & Investment Management: Portfolio construction, factor models, risk budgeting, performance measurement and attribution, and due diligence on hedge funds and other managers. The key skill is linking portfolio risk measures to investment decisions.
- Current Issues in Financial Markets: Recent developments that GARP selects for the exam year, such as new risks, technologies, and regulatory changes. The readings change from year to year, so the key skill is studying the current list and summarizing each reading's main argument.
FRM Part 2 study plan: 20 weeks, 12 to 15 hours a week
1. Bridge from Part I (weeks 1 to 2)
- Refresh Part I statistics, VaR, bond math, and option pricing, since Part II builds directly on them.
- Take a short Part II diagnostic and rank the six areas by weakness.
- Choose a May, August, or November window and plan backward from it.
2. Market and credit risk (weeks 3 to 10)
- Spend about four weeks on market risk, working every estimation and backtesting example.
- Spend about four weeks on credit risk, focusing on exposure, counterparty risk, and credit valuation adjustments.
- Answer 30 to 50 practice questions after each reading and log every miss by concept.
3. Operational, liquidity, and treasury risk (weeks 11 to 14)
- Study operational risk and resilience with an eye for scenario judgment rather than formulas.
- Work through liquidity and treasury readings and practice liquidity ratio and ALM calculations.
- Keep one mixed weekly set from market and credit risk so those areas stay sharp.
4. Investment management and current issues (weeks 15 to 17)
- Study Risk and Investment Management, practicing attribution and risk budgeting problems.
- Read the current year's Current Issues readings and write a short summary of each.
- Rework your full error log from the earlier phases.
5. Full mocks and final review (weeks 18 to 20)
- Sit at least three full 80-question, 4-hour mock exams under real timing.
- Target the area with the lowest mock accuracy each week.
- In the final days, review summaries, flashcards, and your error log, then rest.
How to practice
- Use the time per question, about 3 minutes with 80 questions in 4 hours, to read each question carefully before calculating.
- For every framework, practice explaining its assumptions and failure modes, not just its formula.
- Track accuracy across all six areas, because the 80 questions are equally weighted.
- Use only the current exam year's readings for Current Issues in Financial Markets.
- Use short sets of practice questions with full explanations, plus flashcards and a glossary, to keep definitions and models fresh between longer sessions.
Common mistakes
- Starting Part II without refreshing Part I quantitative tools.
- Spending most of the time on market and credit risk and leaving operational, liquidity, and current issues for the last weeks.
- Memorizing formulas without understanding a model's assumptions and when it breaks down.
- Studying an outdated Current Issues reading list.
- Skipping full 4-hour mocks and misjudging pacing on longer questions.
Free FRM Part 2 practice by topic
- Credit Risk: 132 free questions
- Market Risk: 120 free questions
- Operational Risk: 115 free questions
- Liquidity & Treasury Risk: 87 free questions
- Risk & Investment Management: 86 free questions
- Current Issues: 58 free questions
How long should I study for FRM Part II?
A practical plan is about 20 weeks at 12 to 15 hours per week. Part II spans six areas, so plan for steady weekly study rather than a short cram. Keep the last three weeks for full mock exams and review.
How many questions are on FRM Part II?
FRM Part II has 80 equally weighted multiple-choice questions in 4 hours, about 3 minutes per question. It covers six areas, from market and credit risk to current issues in financial markets. The exam is computer-based at test sites worldwide.
Do I need to pass FRM Part I before Part II?
FRM Part II is for candidates who have passed Part I. You must pass Part II within four years of passing Part I. If you plan to sit both parts close together, confirm GARP's current rules for your window.
When is FRM Part II offered and how much does it cost?
GARP offers FRM Part II in May, August, and November. The 2027 Part II dates are May 15-17, August 13-14 in the afternoon session, and November 20-22. Registration for the 2027 windows is US$600 early or US$800 standard, excluding VAT or GST where it applies.
How is FRM Part II scored?
FRM Part II is scored pass or fail, and GARP also reports quartile results. Results arrive within eight weeks after the testing window closes. GARP reported a 50% pass rate for the November 2025 Part II exam.
What do I need after passing FRM Part II to become certified?
Passing Part II is not the last step. GARP also requires 2 years of relevant full-time work experience. You must submit that experience within 10 years of sitting Part II.
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Sources: GARP: FRM Program and Exams, GARP: FRM Fees and Payments.