200+ Free FRM Part II Practice Questions
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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
Market Risk Measurement and Management
VaR methods, non-parametric approaches, volatility smiles, correlation risk, interest rate risk, stress testing, liquidity risk, model risk
Credit Risk Measurement and Management
Credit risk fundamentals, default probability, counterparty risk, CVA, securitization, credit derivatives, portfolio models, stress testing
Operational Risk and Resiliency
Operational risk framework, measurement, AMA, cyber risk, resiliency, third-party risk, conduct risk, model governance
Liquidity and Treasury Risk
Funding risk, asset-liability management, stress testing, intraday liquidity, collateral, reserves, balance sheet management
Risk Management and Investment Management
Factor theory, risk budgeting, hedge funds, private equity, risk monitoring, portfolio construction, performance evaluation, behavioral finance
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
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.