Financial Risk Manager credential artwork

Financial Risk Manager (FRM) Exam Guide

Validates knowledge of financial risk measurement and management across market, credit, operational and liquidity risk, using quantitative methods.

Part I builds the quantitative tools, product knowledge and valuation methods used in financial risk. Part II applies them to major risk areas. Study the calculations and their assumptions, then use GARP’s official timed practice exams to rehearse each part.

Understand the exam

Syllabus

Each row is one exam part, and GARP sets topic weights within each part.

Part IRisk foundations and tools
  1. Foundations of risk management (20%)
  2. Quantitative analysis (20%)
  3. Financial markets and products (30%)
  4. Valuation and risk models (30%)

Example scenario: Two portfolios have the same one-day VaR but very different exposures to a market crash. What additional analysis would help compare their risk?

Part IIApplied risk management
  1. Market risk measurement and management (20%)
  2. Credit risk measurement and management (20%)
  3. Operational risk and resilience (20%)
  4. Liquidity and treasury risk measurement and management (15%)
  5. Risk management and investment management (15%)
  6. Current issues in financial markets (10%)

Example scenario: A bank has profitable long-term assets but relies on short-term funding. Which risks would you examine if deposit withdrawals accelerate?

Official FRM learning objectives · 2026 curriculum

Format

Questions
100 (Part I)
Duration
4h per part
Delivery
Test centre
Languages
English, Chinese (Simplified)

Question types

Multiple choice. Read a question, often with a short calculation or scenario, and choose the one correct answer; every question has equal weight.

CertUp example

A portfolio has a one-day 99% VaR of $2 million. Assuming independent, identically distributed daily returns, what is its approximate ten-day 99% VaR?

  1. $2.0 million
  2. $6.3 million
  3. $20 million
  4. $0.6 million
Show answer

$6.3 million. Under these assumptions VaR scales with the square root of time, so $2 million × √10 is about $6.3 million.

Eligibility and booking

Register and pay through GARP, then schedule your appointment with PSI. Candidates in Mainland China, Hong Kong SAR and Thailand use ATA. Results appear in the GARP portal within eight weeks of the window closing.

Exam windows and schedulingExam policies

Make a study plan

Plan for one part at a time. Put quantitative practice into the first weeks so later valuation topics are easier to follow.

Most candidates spend 200–300 hours. Hours are per part. Plan for the low end if you already work with probability, derivatives and valuation; add time if they are new to you.

24 weeksto be ready
  1. 1Understand the examRead the syllabus and format, check you’re eligible and pick a target date.12 h
  2. 3Learn the core conceptsWork through one main course or book, topic by topic.144 h
  3. 4Practice with mock examsTake timed practice tests and review every mistake.72 h
  4. 5Prepare for exam dayBook the exam and check the ID and delivery rules.12 h

Learn the core concepts

Use the official objectives as your checklist. Part I registration includes GARP Learning; add a course if you prefer video instruction or condensed notes.

Best starting pointGARP LearningGARP · Part I included with registration · Part II $250Best for question practiceFRM Part I Learn + PracticeAnalystPrep · $499 · 12 months · $799 both parts, lifetimeBest condensed notesFRM Part I study packagesKaplan Schweser · $499 Essential · $899 Premium · 14-day refund
See all 4 FRM courses →

Learn the assumptions. For each model, explain what it measures, what inputs it needs and when its assumptions can fail.

Practice with mock exams

Work calculations and conceptual questions together. Use fresh mixed sets, then complete the included official exams under the four-hour limit.

GARP FRM practice examsGARP · Included with registration · access ends with your exam windowFRM Part I and II Practice PackageAnalystPrep · $349 per part · 12 months · $799 both parts, lifetimeFRM Foundation SeriesBionic Turtle · $519 per part · Mastery Series with live review $949
See all 4 FRM practice tests →

Are you ready?

  • You can perform the core calculations with your approved calculator.
  • You can explain model assumptions and apply them to an unfamiliar risk scenario.
  • You can finish a timed exam and explain the errors you need to repair.

Prepare for exam day

FRM uses physical test centres. Bring the documents and calculator required by GARP.

  • Bring an original valid passport or an accepted country-issued driver’s license, with the name matching your booking.
  • Bring a printed Confirmation of Appointment email; an electronic copy is not accepted.
  • Use an approved calculator such as the TI BA II Plus or an allowed HP model, with its memory cleared.
  • Follow the centre’s check-in and storage rules. Breaks do not pause the four-hour clock.
  • Check the GARP portal for results after the exam window closes.

GARP exam-day policies

Advice from exam takers