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200+ Free FRM Part II Practice Questions

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52-58% Pass Rate
200+ Questions
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Questions by Category

Frm-Part2-Credit-Risk55 questions
Frm-Part2-Market-Risk45 questions
Frm-Part2-Operational-Risk40 questions
Frm-Part2-Liquidity-Risk28 questions
Frm-Part2-Investment-Risk20 questions
Frm-Part2-Current-Issues12 questions
2026 Statistics

Key Facts: FRM Part II Exam

52-58%

Historical Pass Rate

GARP (higher than Part I)

80 Qs

Exam Questions

4-hour CBT exam

200+ hrs

Recommended Study

GARP

80,000+

FRM Holders

Worldwide, GARP 2025

4 years

Window to Complete

After passing Part I

2 yrs

Experience Required

After passing both parts

The FRM Part II exam has a 52-58% pass rate, higher than Part I because candidates are better prepared. The 80-question exam covers six areas: Market Risk (20%), Credit Risk (20%), Operational Risk (20%), Liquidity Risk (15%), Investment Risk (15%), and Current Issues (10%). Candidates must complete Part II within 4 years of passing Part I. Combined with 2 years of work experience, this earns the FRM designation held by 80,000+ professionals worldwide.

About the FRM Part II Exam

The FRM Part II exam is the second of two exams required to earn the Financial Risk Manager certification from GARP. It tests knowledge of market risk measurement and management, credit risk measurement and management, operational risk and resiliency, liquidity and treasury risk measurement and management, risk management and investment management, and current issues in financial markets.

Questions

80 scored questions

Time Limit

4 hours

Passing Score

~50% (scaled)

Exam Fee

$600-800 (exam) (GARP)

FRM Part II Exam Content Outline

20%

Market Risk Measurement and Management

VaR methods, non-parametric approaches, volatility smiles, correlation risk, interest rate risk, stress testing, liquidity risk, model risk

20%

Credit Risk Measurement and Management

Credit risk fundamentals, default probability, counterparty risk, CVA, securitization, credit derivatives, portfolio models, stress testing

20%

Operational Risk and Resiliency

Operational risk framework, measurement, AMA, cyber risk, resiliency, third-party risk, conduct risk, model governance

15%

Liquidity and Treasury Risk

Funding risk, asset-liability management, stress testing, intraday liquidity, collateral, reserves, balance sheet management

15%

Risk Management and Investment Management

Factor theory, risk budgeting, hedge funds, private equity, risk monitoring, portfolio construction, performance evaluation, behavioral finance

10%

Current Issues in Financial Markets

AI/ML in finance, FinTech, climate risk, cryptocurrency, IBOR transition, pandemic risk, regulatory developments

How to Pass the FRM Part II Exam

What You Need to Know

  • Passing score: ~50% (scaled)
  • Exam length: 80 questions
  • Time limit: 4 hours
  • Exam fee: $600-800 (exam)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

FRM Part II Study Tips from Top Performers

1Master VaR methods: parametric, historical simulation, Monte Carlo, and their extensions (CVaR, stressed VaR)
2Understand counterparty credit risk: exposure measures, CVA, collateral, and central clearing
3Study credit derivatives thoroughly: CDS, CDS indices, tranches, and total return swaps
4Know operational risk frameworks: Basel approaches, AMA, SMA, and scenario analysis
5Practice liquidity risk calculations: LCR, NSFR, survival horizons, and liquidity gap analysis
6Review hedge fund strategies and risk measures: Sharpe, Sortino, Information Ratio, maximum drawdown
7Read Current Issues materials early — these readings change annually and test current knowledge
8Take full 4-hour practice exams to build stamina for the actual exam

Frequently Asked Questions

What is the FRM Part II pass rate?

The FRM Part II pass rate historically averages 52-58%, higher than Part I (42-47%) because candidates who reach Part II have stronger preparation and understanding of risk management concepts. The 2025 pass rate was approximately 55%. The exam remains challenging with complex quantitative and conceptual questions across six topic areas.

What is the format of the FRM Part II exam?

The FRM Part II exam consists of 80 multiple-choice questions administered over 4 hours via computer-based testing (CBT). Unlike Part I, Part II questions are weighted by topic area according to the syllabus percentages: Market Risk (20%), Credit Risk (20%), Operational Risk (20%), Liquidity Risk (15%), Investment Management (15%), and Current Issues (10%).

How long do I have to pass FRM Part II after Part I?

You have 4 years from passing Part I to pass Part II. If you do not pass Part II within this window, your Part I result expires and you must retake both exams. There is no limit on the number of attempts within the 4-year window. Once both parts are passed, you need 2 years of relevant risk management work experience to earn the FRM designation.

How much does FRM Part II cost?

The FRM Part II exam fee is $600 for early registration or $800 for standard registration. There is no additional enrollment fee for Part II (the $400 enrollment fee is paid only once when registering for Part I). If you need to retake Part II, you pay the exam fee again. GARP membership is optional and not required for the certification.

How long should I study for FRM Part II?

GARP recommends 200+ hours of study for Part II. Most successful candidates study 3-5 months, focusing on practice questions and mock exams. Part II is more conceptual than Part I, with greater emphasis on application and case studies. The Current Issues section (10%) requires reading contemporary risk management topics that change annually.

What is the hardest part of FRM Part II?

Many candidates find Credit Risk (20%) and Operational Risk (20%) most challenging due to the breadth of topics and specialized knowledge required. The CVA (Credit Valuation Adjustment) calculations, securitization structures, and operational risk capital models are particularly complex. Current Issues (10%) can also be challenging because the readings change annually and may not have extensive practice materials available.