FRM exam home

Connect risk models to the decisions behind the numbers.

Bring quantitative methods, markets, valuation, and risk management into one exam home built around both FRM parts and their different reasoning demands.

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Risk foundationsQuestion-bank sample

A stock has a beta of 1.5 with the market portfolio. The risk-free rate is 6.0% per year and the expected market return is 10.0% per year. According to the CAPM, the stock's expected return is ___.

Choose an answer to see the calculation or professional judgment behind it.

From the MiloPrep question bank. Independently authored practice, not official exam items.

Two part homesQuantitative and judgment itemsCurrent topic weightsGARP sources linked

Know the exam

The FRM exams

Two multiple-choice parts spanning risk foundations, measurement, markets, and applied management.

Components

2

Average component time

240 min

Question delivery

Multiple choice

Part I

Part I

240 minutes · Multiple choice

  • Foundations of Risk Management (20%)
  • Quantitative Analysis (20%)
  • Financial Markets and Products (30%)
  • Valuation and Risk Models (30%)
Explore Part IPractice
Part II

Part II

240 minutes · Multiple choice

  • Market Risk Measurement and Management (20%)
  • Credit Risk Measurement and Management (20%)
  • Operational Risk and Resilience (20%)
  • Liquidity and Treasury Risk Measurement and Management (15%)
  • Risk Management and Investment Management (15%)
Explore Part IIPractice

Structure and topic allocations are checked against the official sources linked below.

The FRM study loop

Know what the model assumes before you calculate

FRM mistakes rarely end at arithmetic. Review should separate model selection, inputs, computation, and risk interpretation so one weak link does not repeat.

Foundations vocabulary in context

Practise governance, risk types, and firm failures as applied stems - not glossary matching.

VaR and model limitations

Know when a VaR figure is misleading. Part I and Part II both punish blind formula trust.

Operational resiliency scenarios

Part II operational risk is a full fifth of the exam. Give it equal calendar time to market risk.

After one miss

Risk foundations

The CAPM expected return equals the risk-free rate plus beta times the market risk premium. The market risk premium is 10.0% - 6.0% = 4.0%, and beta times this premium is 1.5 × 4.0% = 6.0%. Adding the risk-free rate gives 6.0% + 6.0% = 12.0%.

Published area
Reasoning step
Distractor pattern
Time pressure

Your next focused block

Review the broken step, then test it in a new context.

  1. 1

    Foundations vocabulary in context

    Practise governance, risk types, and firm failures as applied stems - not glossary matching.

  2. 2

    VaR and model limitations

    Know when a VaR figure is misleading. Part I and Part II both punish blind formula trust.

  3. 3

    Operational resiliency scenarios

    Part II operational risk is a full fifth of the exam. Give it equal calendar time to market risk.

One connected loop: answer, diagnose, review, and retest.

A realistic study path

Build the work in the order this exam requires

  1. 01

    Cover all four Part I topics - none are optional

    Foundations and Quant are 20% each; Markets and Valuation are 30% each. Skipping Foundations to chase formulas is a common miss.

  2. 02

    Practise Quant with interpretation, not only computation

    GARP often asks what a result implies for risk decisions, not only the intermediate arithmetic.

  3. 03

    Build Part II by risk type

    Rotate market, credit, operational, and liquidity blocks weekly so Current Issues does not crowd out core domains.

  4. 04

    Keep a Current Issues reading log

    Part II’s current-issues weight is smaller but refreshed. Schedule it late enough to be current, early enough to revise.

  5. 05

    Sit full four-hour mocks for each part

    Pace 100 or 80 questions under the real clock. Review by GARP topic weight.

FRM topic weights

Published weight ranges or scored-question allocations from the awarding body. Use them to budget study time - larger areas deserve calendar priority.

Part I

TopicWeight
Foundations of Risk Management20%
Quantitative Analysis20%
Financial Markets and Products30%
Valuation and Risk Models30%

Part II

TopicWeight
Market Risk Measurement and Management20%
Credit Risk Measurement and Management20%
Operational Risk and Resilience20%
Liquidity and Treasury Risk Measurement and Management15%
Risk Management and Investment Management15%
Current Issues in Financial Markets10%

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  • Exam-format simulations and constructed-response practice where applicable
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  • Detailed answer and choice-level explanations on supported practice
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  • AI study assistance when that roadmap capability launches
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FRM FAQ

How many parts is the FRM?
Two: Part I and Part II.
How many questions are on FRM Part I and Part II?
Part I has 100 multiple-choice questions in four hours. Part II has 80 multiple-choice questions in four hours, per GARP.
What are the Part I topic weights?
Foundations 20%, Quantitative Analysis 20%, Financial Markets and Products 30%, Valuation and Risk Models 30%.
Can I sit Part II before Part I?
GARP’s registration rules govern sequencing and windows. Confirm the current policy on garp.org before you book.
Does MiloPrep cover both FRM parts?
Yes. The all-access subscription includes Part I and Part II practice.

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