The Financial Risk Management exams from the Global Association of Risk Professionals are taken by people building a career in risk. This page gives you free practice sets grouped by topic, a map of the official content areas, worked explanations of sample questions, a study plan and answers to common questions about format, registration and scoring.
Numbers in brackets link to the official sources listed under Sources & last verified. Dates that have passed are removed automatically.
| Item | Detail | Source · Verified |
|---|---|---|
| Number of questions (Part I) | 100 questions[1] | Global Association of Risk Professionals · Oct 25, 2026 |
| Number of questions (Part II) | 80 questions[1] | Global Association of Risk Professionals · Oct 25, 2026 |
| Time limit | 4 hours per part[1] | Global Association of Risk Professionals · Oct 25, 2026 |
| Passing score | Pass/fail basis (no numeric cut score published)[1] | Global Association of Risk Professionals · Oct 25, 2026 |
| Validity (Part I) | Pass Part II by December 31 of the 4th year after passing Part I[2] | Global Association of Risk Professionals · Oct 25, 2026 |
| Renewal | 40 CPD credits every two years[3] | Global Association of Risk Professionals · Oct 25, 2026 |
| Delivery | Computer-based multiple-choice exams[1] | Global Association of Risk Professionals · Oct 25, 2026 |
| Eligibility | No educational or professional prerequisites to register[4] | Global Association of Risk Professionals · Oct 25, 2026 |
| Score release | Within 8 weeks after the exam window closes[4] | Global Association of Risk Professionals · Oct 25, 2026 |
| Registration opens | May 2027: Dec 1, 2026; Aug 2027: Mar 1, 2027; Nov 2027: May 1, 2027[5] | Global Association of Risk Professionals · Oct 25, 2026 |
According to Global Association of Risk Professionals, “The FRM Exam Part I contains 100 equally weighted questions, and the FRM Exam Part II has 80 equally weighted questions.”[1]
The Financial Risk Management certification from the Global Association of Risk Professionals (GARP) is aimed at people who measure, manage and oversee financial risk. It is split into Part I and Part II, and both are computer-based multiple-choice exams.
Part I contains 100 equally weighted questions and Part II contains 80 equally weighted questions. Candidates are given 4 hours to complete each part. Both exams are scored on a pass/fail basis, and GARP does not publish a numeric cut score, so you should not expect to find a target percentage to aim for. Treat any figure quoted elsewhere as unofficial.
There are no educational or professional prerequisites to register. If you pass Part I, you need to pass Part II by December 31 of the 4th year after passing Part I, so plan the gap between Part I and Part II deliberately.
Registration windows are set by GARP. Registration for the May 2027 exam opens on Dec 1, 2026, for the Aug 2027 exam on Mar 1, 2027, and for the Nov 2027 exam on May 1, 2027. Results are accessible within 8 weeks after the exam window closes. Once certified, professionals are expected to earn 40 CPD credits on a recurring cycle set by GARP.
Fees, deadlines and policies can change, so confirm them on the official GARP website before you register.
The content areas below are copied from the official Financial Risk Management content outline published by Global Association of Risk Professionals, with the share of the exam each area carries. The right-hand column shows which of our practice sets covers it.
| Official content area | Weight | Practice on this site |
|---|---|---|
| Foundations of Risk Management[6] | 20% | Financial Risk Management Practise the basic vocabulary of risk, governance and risk frameworks until you can tell similar terms apart quickly. |
| Quantitative Analysis[6] | 20% | Financial Risk Management Risk Measurement... Work through probability, statistics and measurement questions, and say aloud what each result tells a risk manager. |
| Financial Markets and Products[6] | 30% | Financial Risk Management Derivatives and ... Practise how derivatives and other instruments behave and how they are used to hedge exposures. |
| Valuation and Risk Models[6] | 30% | Financial Risk Management Market Risk Meas... Focus on what each model assumes, where it breaks down and how measures such as VaR and Expected Shortfall differ. |
| Market Risk Measurement and Management[6] | 20% | Financial Risk Management Market Risk Mana... Practise identifying risk factors, choosing a measurement approach and interpreting limits and results. |
| Credit Risk Measurement and Management[6] | 20% | Financial Risk Management Credit Risk Mana... Practise default, exposure and loss concepts, including counterparty risk on derivative contracts. |
| Operational Risk and Resilience[6] | 20% | Financial Risk Management Operational Risk... Practise control frameworks, loss events and early-warning indicators such as key risk indicators. |
| Liquidity and Treasury Risk Measurement and Management[6] | 15% | Financial Risk Management Liquidity Risk M... Practise funding and market liquidity concepts and how institutions plan for stress. |
| Risk Management and Investment Management[6] | 15% | Financial Risk Management Portfolio Risk M... Practise how risk is measured and controlled at portfolio level and how it relates to performance. |
| Current Issues in Financial Markets[6] | 10% | Financial Risk Management Advanced Read recent official material on market developments, then test whether you can explain the risk implications in plain terms. |
Prepare for the Financial Risk Management exam with our free practice test modules. Each quiz covers key topics to help you pass on your first try.
These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.
Question: What is a 'Key Risk Indicator' (KRI) in operational risk management?
Answer: B. A metric that provides early warning signals of increasing operational risk exposure
Explanation:
The correct answer is the metric that gives early warning of rising operational risk. A key risk indicator is forward-looking: things like staff turnover, system downtime or error rates move before a loss event happens, which lets management act in time.
The financial ratio for credit quality is a credit analysis tool and says nothing about operational processes. The mandatory regulatory disclosure confuses an indicator with a reporting duty; a KRI is an internal management tool, not a filing. The minimum threshold for reporting losses to regulators describes a reporting rule, not a signal of trouble ahead.
Rule to remember: an indicator warns before the loss, while a loss data record describes what has already happened.
Question: What is 'counterparty credit risk' (CCR) in the context of OTC derivatives?
Answer: B. The risk that the counterparty to a derivative contract defaults before final settlement
Explanation:
Counterparty credit risk is the risk that the other party to a derivative contract defaults before final settlement. The loss arises when the contract has positive value to you and the counterparty cannot pay.
The option about the underlying asset defaulting mixes up the counterparty with the reference asset; the contract can have a counterparty problem even when the underlying is perfectly healthy. The option about collateral losing value during the margin period of risk describes a real feature of collateralised exposure, but it is a driver of exposure, not the definition of the risk. The option about regulatory changes making contracts unenforceable is legal or regulatory risk.
Rule to remember: ask who must pay you and whether they might fail to do so.
Question: Which risk measure quantifies the potential loss beyond the Value at Risk (VaR) threshold?
Answer: B. Expected Shortfall (CVaR)
Explanation:
Expected Shortfall, also called Conditional VaR, is correct because it averages the losses in the tail beyond the VaR confidence level. VaR gives a threshold, and Expected Shortfall tells you how bad things are on average once that threshold is crossed.
Beta measures sensitivity to market movements, not tail loss. Standard deviation measures overall dispersion of returns around the mean and treats gains and losses alike, so it says nothing specific about losses beyond a cutoff. Tracking error measures how far a portfolio's returns deviate from a benchmark, which is a relative performance measure.
Rule to remember: VaR marks where the tail starts, and Expected Shortfall describes what is inside it.
Start with the official GARP material for the part you are sitting, and read the list of content areas so you know what is covered. Then use the blueprint table above to match each area to a practice set.
Take a practice set before you study an area, without notes, to find out what you do not yet know. Read every explanation, including those for questions you answered correctly, because a lucky guess hides a gap. Keep a short list of mistakes written as rules, such as which measure describes the tail and which describes the threshold, and review that list before each session.
Once you have been through each area, move to the mixed sets and answer under time pressure. The real exam gives 4 hours per part, so practise sitting for long stretches without breaks in focus. Return to the official material whenever a topic keeps causing errors.
These questions are written by us to help you practise and are not real exam questions. Use them to find weak spots, not to predict your result. Check the registration dates on the GARP site and book your exam window early.
How we verify: editorial & fact-checking policy. Report an error: contact us.
Part I has 100 equally weighted questions and Part II has 80 equally weighted questions. Both are multiple-choice and delivered by computer. Candidates are given 4 hours to complete each part. Check the GARP program page for any changes before you register.
No. GARP states that there are no educational or professional prerequisites needed to register. Anyone can sit the exams, although the material is demanding, so many candidates build their background through study before choosing an exam window.
GARP scores both exams on a pass/fail basis and does not publish a numeric cut score. Because of that, treat any specific passing percentage you see online as unofficial. Aim to understand each content area well rather than to hit a target number.
Registration for the May 2027 exam opens on Dec 1, 2026. For the Aug 2027 exam it opens on Mar 1, 2027, and for the Nov 2027 exam on May 1, 2027. Confirm closing dates and fees on the GARP exam logistics page.
GARP says results will be accessible within 8 weeks after the exam window closes. Results are not instant, so plan your next steps, including Part II timing, with that wait in mind.
You need to pass Part II by December 31 of the 4th year after passing Part I. After certification, professionals are expected to earn 40 CPD credits on a recurring cycle. Read the official exam policies page for the full conditions.