FRM Part II

Who should prioritise Part II

FRM Part II topic weights

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

Where FRM practice should focus

Three high-leverage drills. If practice time is short, start here.

• 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.

Navigate this exam

• Market Risk Measurement and ManagementMarket Risk Measurement and Management has a published allocation of 20% in Part II: treat it as a decision rule plus timed practice, not vocabulary alone. Applied risk management across market, credit, operational, liquidity, and investment risk. 80 questions in four hours.
• Credit Risk Measurement and ManagementCredit Risk Measurement and Management has a published allocation of 20% in Part II: treat it as a decision rule plus timed practice, not vocabulary alone. Applied risk management across market, credit, operational, liquidity, and investment risk. 80 questions in four hours.
• Operational Risk and ResilienceOperational Risk and Resilience has a published allocation of 20% in Part II: treat it as a decision rule plus timed practice, not vocabulary alone. Applied risk management across market, credit, operational, liquidity, and investment risk. 80 questions in four hours.
• Liquidity and Treasury Risk Measurement and ManagementLiquidity and Treasury Risk Measurement and Management has a published allocation of 15% in Part II: treat it as a decision rule plus timed practice, not vocabulary alone. Applied risk management across market, credit, operational, liquidity, and investment risk. 80 questions in four hours.
• Risk Management and Investment ManagementRisk Management and Investment Management has a published allocation of 15% in Part II: treat it as a decision rule plus timed practice, not vocabulary alone. Applied risk management across market, credit, operational, liquidity, and investment risk. 80 questions in four hours.
• Current Issues in Financial MarketsCurrent Issues in Financial Markets has a published allocation of 10% in Part II: treat it as a decision rule plus timed practice, not vocabulary alone. Applied risk management across market, credit, operational, liquidity, and investment risk. 80 questions in four hours.
• Market Risk VaR BacktestingPart II market-risk measurement — backtesting exceptions and model validation cues.
• Credit Exposure and Credit VaREE, EPE, and credit VaR building blocks that Part II credit-risk weight tests heavily.
• Counterparty Credit Risk and CVA IntuitionCVA/DVA intuition and netting/collateral effects in Part II credit stems.
• Operational Risk Capital and ResiliencyLoss data, scenario analysis, and resiliency themes that candidates under-prepare vs market risk.
• Liquidity Risk Metrics and Contingency FundingLCR/NSFR-style thinking and contingency funding plans in Part II liquidity weight.
• Risk Management for Investment PortfoliosPortfolio risk overlays and hedge effectiveness inside Part II investment-management weight.
• Current Issues Reading IntegrationHow to convert GARP current-issues readings into testable decision rules — 10% that is easy to skip.
• Model Risk GovernanceModel validation, inventory, and governance failures that span Part II operational and market topics.
• Integrated Risk Case DrillMixed stems that combine market, credit, and liquidity facts — practise identifying the dominant risk first.

How to read an FRM VaR limitation stem

Troubleshooting common FRM study problems

If your mocks are stuck, match the symptom and change the next week. do not just do more of the same questions.

• Part I Quant feels fine but mocks stall

  Likely cause

  Under-weighting Foundations or Markets and Products.

  Next step

  Audit your last mock by the 20/20/30/30 weights and rebuild the week from the lowest bucket.

• Part II market risk crowds out everything

  Likely cause

  Comfort bias toward familiar VaR content.

  Next step

  Cap market-risk study at its 20% weight and force operational and liquidity blocks onto the calendar.

• Current Issues always surprise you

  Likely cause

  Reading summaries once without question practice.

  Next step

  Turn each reading into five self-made questions and revisit weekly.

Part II FAQs

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.

Next steps