Finance & Securities • Exam
Financial Risk Manager Exam Part II
Financial Risk Manager Exam Part II — Finance & Securities credential from Global Association of Risk Professionals (GARP)
Researched and maintained by TestPrepPilot Editorial BoardRisk management & financial certifications desk · Figures last verified August 2026
The short version
What is the Financial Risk Manager Exam Part II and is it worth it?
Financial Risk Manager Exam Part II is a professional credential administered by Global Association of Risk Professionals (GARP). It validates job-ready knowledge and skills in the Finance & Securities field and is used for career entry, advancement, or compliance.
- Recognized credential from Global Association of Risk Professionals (GARP)
- Demonstrates verified competence in Finance & Securities
- Supports career advancement and may satisfy licensing or employer requirements
What is it?
What exactly is the Financial Risk Manager Exam Part II?
Financial Risk Manager Exam Part II — Finance & Securities credential from Global Association of Risk Professionals (GARP)
Second risk management paper covering market, credit, operational, liquidity and investment risk plus current financial issues. Offered by Global Association of Risk Professionals (GARP), it is designed for candidates who need to demonstrate verified competence in the Finance & Securities field. The credential is commonly used for career entry, advancement, regulatory compliance, or employer requirements. Candidates should review the official handbook for eligibility, exam format, and scoring before registering.
The path in brief
- Confirm you meet any eligibility or prerequisites
- Review the official handbook and study materials
- Register and pay through the awarding body or authorized provider
- Schedule and take the exam (test center or online proctoring)
- Receive your score and, if passed, your credential
Before you book
Who is eligible to sit the Financial Risk Manager Exam Part II?
Passed FRM Part I
Who it is for: Professionals and candidates seeking to validate Finance & Securities competence.
The test itself
What is the format of the Financial Risk Manager Exam Part II?
The Financial Risk Manager Exam Part II is administered by Global Association of Risk Professionals (GARP) and runs 4 hours and contains 80 (4 hours) questions.
| Administered by | Global Association of Risk Professionals (GARP) |
|---|---|
| Questions | 80 (4 hours) |
| Time limit | 4 hours |
| Pass mark | Passing score set by the awarding body; see the official score report |
| Exam fee | ~$1,100-$1,200 |
| Format | Proctored, computer-based (test center or online remote proctoring) |
Content outline
What topics are on the Financial Risk Manager Exam Part II?
The Financial Risk Manager Exam Part II covers 4 content domains.
Weightings come from the official exam outline. Study time is best allocated in roughly these proportions rather than evenly across domains.
- Markets & products
Topic area tested on the exam; see the official blueprint for the detailed breakdown.
- Regulation & ethics
Topic area tested on the exam; see the official blueprint for the detailed breakdown.
- Analysis & valuation
Topic area tested on the exam; see the official blueprint for the detailed breakdown.
- Client & risk management
Topic area tested on the exam; see the official blueprint for the detailed breakdown.
The path
How do you register for the Financial Risk Manager Exam Part II?
- 1
Visit the awarding body’s official website and create an account
- 2
Select the credential and review its specific requirements
- 3
Complete any required eligibility (education, experience, or training)
- 4
Pay the registration fee
- 5
Schedule the exam at a test center or online
- 6
Take the exam and receive your results
The fine print
What are the retake and renewal rules for the Financial Risk Manager Exam Part II?
- Proctoring & delivery
- Proctored, computer-based delivery (test center or remote online proctoring), varying by exam.
- Retake policy
- Varies by credential — most bodies permit retakes after a waiting period and full or partial fee.
- Score reporting
- Scores are reported per the body’s timeline, typically electronically after the exam.
- Recertification
- Varies; many credentials require renewal every 2–3 years via continuing education or a recertification exam.
What it pays
How much does this credential pay?
FRM Part II completes the risk-management track: financial risk specialists earned about a $101,100 median in May 2024 (BLS)
The FRM (Financial Risk Manager) Part II exam is the second of the two exams in the GARP certification program, covering the application of risk management - market risk measurement and management, credit risk, operational risk, liquidity and treasury risk, risk management and investment management, and current issues in financial markets. It is the final exam step on the path to the FRM designation (which also requires two years of relevant work experience), rather than a job license, so no single BLS SOC code attaches to it; the salary story belongs to the risk and finance occupations it serves. BLS reported that financial and investment analysts (SOC 13-2051) earned a median of $101,350 in May 2024, and financial risk specialists (13-2099) about $101,100 (OEWS May 2024); risk-management roles in banking, insurance, asset management and energy trading sit in these ranges, with senior risk and quantitative roles paying substantially more. The structural point is that the FRM designation (Part I + Part II + experience) is one of the two recognized risk-management credentials, and holding it is common in job postings for risk roles at financial institutions; Part II is the deeper, application-focused exam, and GARP publishes its pass rates (recently higher than Part I, often in the 50-60 percent range). BLS classifies workers by occupation, not certifications, so no certificate maps to a specific wage; the value is the domain signal in a market where risk expertise is specialized and well compensated.
| Measure | Figure | Source / note |
|---|---|---|
| Financial and investment analysts median, May 2024 | $101,350 | BLS OEWS, SOC 13-2051 |
| Financial risk specialists median, May 2024 | ~$101,100 | BLS OEWS, SOC 13-2099 |
| All-occupation median, May 2024 | $49,500 | BLS OEWS |
| FRM structure | Part I + Part II + 2 yrs experience | GARP, full designation |
Job growth.Financial-analyst employment is projected to grow 7 percent from 2024 to 2034; risk roles follow financial-industry demand.
Source: BLS Occupational Outlook Handbook - Financial Analysts
Your odds
What are the pass rates?
GARP publishes FRM pass rates: Part II first-attempt pass rates have recently been approximately 50-60 percent
GARP publishes exam pass rates by session. For FRM Part II, recent first-attempt pass rates have generally been in the 50-60 percent range (for example, 2023 and 2024 sessions were reported in the low-to-mid 50s in several administrations), which is typically higher than the recent Part I rates (approximately 40-50 percent). These are cohort statistics that vary by session. The Part II exam is computer-based, 80 multiple-choice questions in 4 hours, with single sittings in May and November. The exam covers five core areas plus current issues: market risk measurement and management (20 percent), credit risk measurement and management (20 percent), operational risk and resilience (20 percent), liquidity and treasury risk measurement and management (15 percent), risk management and investment management (15 percent), and current issues in financial markets (10 percent). Results are reported as pass/fail with quartile diagnostics by topic; GARP does not publish a numeric passing score, and candidates who fail may retake (no limit on attempts, but verify the current retake policy and fees). Because Part II builds on Part I, the honest preparation message is that candidates should pass Part I first and treat Part II as the application-focused half of the program, with the published pass rates as the realistic context for planning a serious study schedule.
Read this before quoting the number.GARP publishes pass rates; recent FRM Part II first-attempt rates were approximately 50-60%. No numeric passing score is published - results are pass/fail with quartile diagnostics.
Your schedule
How long should I study for it?
250-350 hours over 3-5 months of focused study
A realistic FRM Part II plan runs 250-350 hours over 3-5 months, deeper than Part I because the content is application-focused. The exam is 80 questions in 4 hours covering: market risk (VaR methodologies, stress testing, backtesting), credit risk (default probability, credit VaR, counterparty risk, CVA), operational risk (measurement approaches, resilience, scenario analysis), liquidity and treasury risk (funding and market liquidity, ALM), risk management and investment management (portfolio risk, performance attribution, hedge funds), and current issues. Month 1: read the GARP curriculum books for market risk and credit risk, with practice questions after each chapter; these two areas are 40 percent of the exam. Months 2-3: complete operational risk, liquidity and treasury risk, and investment management, integrating daily practice questions (30-50 daily with full review), and read the current-issues section (which is drawn from recent published research). Month 4: two to three full practice exams under timed conditions, targeted review of the quartile diagnostics, and taper. The dominant resources are GARP’s official books and practice exams (included with enrollment), a question bank, and optional third-party materials; many candidates take a prep course. The exam fee is roughly $1,100-$1,200 for Part II (early and standard tiers; verify current pricing), and candidates should register for the May or November sitting with lead time. Part I must be passed first, and the designation additionally requires two years of relevant work experience.
- Month 190
Market and credit risk
- GARP books: market and credit risk
- Chapter practice questions
- Months 2-3180
Operational, liquidity, investments
- Remaining core areas
- 30-50 Qs daily with full review; current issues
- Month 470
Practice exams and taper
- 2-3 full timed practice exams
- Quartile-targeted review
Adjusting the pace
Part I and Part II same window.Some candidates sit both parts in the same window; most take Part I first and Part II in a later session.
Work-experience requirement.The FRM designation requires two years of relevant work experience after passing both parts.
How to study
How do I prepare most effectively?
The most effective FRM Part II strategies reflect its application focus. Strategy one: read the GARP curriculum as the primary source, because the exam is written against GARP’s own readings and Part II especially tests application of the frameworks, not just definitions; the books are included with enrollment. Strategy two: weight the exam areas by percentage - market and credit risk are 40 percent combined, so the deepest study belongs there, with liquidity, operational and investment risk following; candidates who spread time evenly underweight the big areas. Strategy three: make daily practice questions the backbone (30-50 daily with full review), because the 80-question, 4-hour format demands speed and the question style is learned through volume; a question bank is the standard supplement. Strategy four: master the quantitative applications - VaR methodologies, credit risk models, and the stress-testing and backtesting concepts - because the application items are where candidates fail; practice the calculations, not just the concepts. Strategy five: read the current-issues section carefully, because it is drawn from recent published research and is a distinct testable area that self-study candidates often skip. Strategy six: use GARP’s practice exams as the final checkpoint - they are the closest format match - and manage the retake plan honestly using the quartile diagnostics.
Read the GARP curriculum
Part II tests application of the frameworks in the books.
Weight market and credit risk
40% of the exam combined; the deepest study belongs there.
Daily question volume
30-50 questions daily with full review.
Master the quantitative applications
VaR, credit models, stress testing and backtesting.
Read the current issues
A distinct testable area drawn from recent research.
What to buy
Which study resources are worth paying for?
The FRM Part II resource market mirrors Part I: GARP’s official materials are included with enrollment. GARP provides the full curriculum books, practice exams and study guides as part of the exam fee, which is roughly $1,100-$1,200 for Part II (early and standard registration tiers; verify current pricing). Question banks are the standard paid supplement (about $150-$400 for a subscription) and provide the practice volume the curriculum alone lacks. Third-party study guides, video courses and live classes ($300-$2,000) add structure and are popular, with the honest caveat that the exam is curriculum-based and third-party material must stay aligned with the current GARP readings. Free resources include GARP’s practice questions and the published exam outline. The honest ranking: the GARP curriculum and practice exams (included), a question bank for volume, and a course only for structure or quantitative support. Prices here are current as of 2025-26 and change annually.
| Resource | Price | Format | Best for |
|---|---|---|---|
| GARP curriculum books | Included with exam fee | Print/ebook | The primary source - the exam is based on them |
| GARP practice exams | Included | Online | Format and timing rehearsal |
| Question bank subscription | $150-$400 | Online | Daily practice volume |
| Prep course (live/online) | $300-$2,000 | Live/on-demand | Structure and quantitative support |
Prices dated 2025-26; the Part II exam fee is ~$1,100-$1,200 (verify tiers). No commission-based ranking.
Avoid these
What mistakes do candidates most often make?
The most common FRM Part II mistakes come from under-weighting the application content and the big areas. Mistake one: studying third-party summaries instead of the GARP curriculum; Part II tests application of the frameworks, and condensed material misses the depth the exam expects. Mistake two: spreading study time evenly across all six areas; market and credit risk are 40 percent combined, and candidates who under-weight them lose the biggest share of the exam. Mistake three: skipping the quantitative applications; the calculation items (VaR, credit models, stress testing) are where candidates fail, and practicing the math is essential. Mistake four: ignoring the current-issues section; it is a distinct testable area drawn from recent research, and self-study candidates who skip it leave points behind. Mistake five: low question volume; the 80-question, 4-hour format demands practiced speed. Mistake six: forgetting the designation requirements - Part I must be passed first, and the designation needs two years of relevant experience, so the roadmap should be planned from the start. Finally, candidates should register early for the lower fee tier and confirm the May/November window.
✕Skipping the GARP curriculum
✓Part II tests application of the frameworks in the books.
✕Even time across all areas
✓Weight market and credit risk (40% combined).
✕Avoiding the quantitative items
✓Practice the VaR, credit and stress-test calculations.
✕Skipping the current issues
✓A distinct testable area from recent research.
✕Forgetting the designation steps
✓Part I first, then Part II, plus 2 years of experience.
What you'll face
What question types will I see?
The FRM Part II exam is 80 multiple-choice questions in 4 hours, computer-based, with single-sitting administrations in May and November. The six areas: market risk (20 percent), credit risk (20 percent), operational risk and resilience (20 percent), liquidity and treasury risk (15 percent), risk management and investment management (15 percent), and current issues in financial markets (10 percent). Results are pass/fail with quartile diagnostics; GARP publishes cohort pass rates (recently ~50-60 percent for Part II). Samples below are editor-written illustrations of the published exam topics, not live exam items.
VaR, stress testing, backtesting.
Default probability, credit VaR, counterparty risk, CVA.
Resilience, funding liquidity, portfolio risk.
Recent developments in financial markets.
Try these
Q1A bank estimates that its 95 percent, one-day Value at Risk is $10 million. Which statement best interprets this measure?
Answer:B
VaR at 95% over one day means there is a 5% chance the daily loss exceeds the VaR figure; it is a threshold for tail losses, not an expected loss.
Q2Which concept most directly captures the risk that a counterparty defaults and the exposure is lost?
Answer:A
Credit risk measures the loss from counterparty default, captured through exposure at default and default probability; the other options describe different risk categories.
Q3A fund’s ability to meet withdrawal requests depends on selling assets quickly without moving prices. Which risk is this primarily about?
Answer:A
Market (asset) liquidity risk is the risk of selling assets at unfavorable prices when funds are needed; funding liquidity risk is the liability-side counterpart, and the other options describe different risks.
Samples are editor-written illustrations of the published exam topics, not live exam items.
The big day
What should I expect on exam day?
The FRM Part II exam is administered on a single date in May and November each year at authorized test centers worldwide (with some administrations online; verify the current delivery). Candidates register through GARP with early and standard fee tiers, and on the day arrive 30 minutes early with a valid ID; the exam runs 4 hours for 80 questions with a scheduled break, and personal electronics are not permitted; a GARP-approved calculator is permitted. Results are typically released within about six weeks, reported as pass/fail with quartile diagnostics by topic; GARP publishes the session pass rates. Candidates who fail may retake in a future session (verify the current retake policy and fees). The full FRM designation additionally requires passing Part I and two years of relevant work experience. Afterwards, successful candidates complete the work-experience requirement and apply for the designation, and all candidates should use the quartile diagnostics to plan any retake.
Bring
- Valid photo ID
- Appointment confirmation
- GARP-approved calculator
- Registration and exam-day instructions
Leave at home
- Phone, smartwatch, and personal electronics
- Notes or study materials
- Unofficial calculators not on the GARP list
How the day runs
Rules in the room
- Valid ID is mandatory; personal electronics are prohibited.
- Only GARP-approved calculators are permitted.
- Results are pass/fail with quartile diagnostics.
- The designation requires Part I, Part II, and 2 years of relevant experience.
Afterwards.Use the quartile diagnostics to plan the next step - complete the experience requirement and apply for the designation if passed, or target a Part II retake.
Reference
What are the key facts about the Financial Risk Manager Exam Part II?
Financial Risk Manager Exam Part II is a exam credential; awarded by Global Association of Risk Professionals (GARP); the exam fee is ~$1,100-$1,200; typical preparation is 4 hours (80 questions); holders typically earn $75,000-$150,000 (risk management roles).
| Credential | Financial Risk Manager Exam Part II |
|---|---|
| Abbreviation | FRM Part II |
| Type | Exam |
| Profession | Finance & Securities |
| Specialty | Investment & Portfolio Management |
| Awarded by | Global Association of Risk Professionals (GARP) |
| Difficulty | Regulated |
| Typical prep time | 4 hours (80 questions) |
| All-in cost | ~$1,100-$1,200 (early/standard tiers) |
| Typical salary range | $75,000-$150,000 (risk management roles) |
| Credential | Financial Risk Manager Exam Part II |
| Awarding body | Global Association of Risk Professionals (GARP) |
| Exam format | Proctored, computer-based |
| Validity | Varies by credential (commonly 2–3 years) |
| Languages | Varies — see awarding body |
| Scope | National / Multi-state |
Real questions
Frequently asked questions about the Financial Risk Manager Exam Part II
How do I register for the Financial Risk Manager Exam Part II exam?
Register through Global Association of Risk Professionals (GARP)'s official portal or an authorized test provider (e.g., Pearson VUE or Prometric where applicable). Create an account, select the exam, pay the fee, and schedule a date.
How much does the exam cost?
Fees vary by location and currency. Confirm the current fee on the official registration page before scheduling.
How long is the credential valid, and how do I renew?
GARP publishes pass rates - recent FRM Part II first-attempt rates were approximately 50-60%, higher than Part I.
What if I do not pass?
Most bodies allow retakes after a waiting period and payment of the full or partial fee. Check Global Association of Risk Professionals (GARP)'s retake policy before rescheduling.
How do I register for a Global Association of Risk Professionals (GARP) credential?
Register through the official website, select your exam, pay the fee, and schedule a date.
How do I renew a credential?
Renewal policies vary by credential; check the specific program page for requirements and cycles.
In short
Is the Financial Risk Manager Exam Part II worth it?
- Financial Risk Manager Exam Part II is awarded by Global Association of Risk Professionals (GARP).
- Validates job-ready competence in Finance & Securities.
- Registration is through the awarding body or an authorized test provider.
- Renewal and retake policies vary — confirm before scheduling.
Same awarding body
What other credentials does Global Association of Risk Professionals (GARP) award?
Worth comparing
How does the Financial Risk Manager Exam Part II compare with similar credentials?
Trust
Where does this information come from?
Everything above is taken from the awarding body's own published material. Fees, question counts and domain weights are revised regularly — check the official page before you pay.
Research confidence: low · Last reviewed 2026-08