FRM Part 1 vs Part 2 (2026): Syllabus, Topics & Format

The Financial Risk Manager (FRM) certification from the Global Association of Risk Professionals (GARP) is sat in two parts, and they test quite different things. Part 1 builds the toolkit; Part 2 applies it to how institutions actually manage risk. This guide compares the two side by side so you know what each level covers and how they connect. If you're still choosing between credentials, our FRM vs CFA comparison is a useful starting point.

FRM Part 1 — the foundations

Part 1 establishes the core concepts and tools of risk management, across four topic areas:

• Foundations of Risk Management (20%) — risk frameworks, governance and the role of the risk manager.
• Quantitative Analysis (20%) — statistics, probability and the quantitative methods used throughout the syllabus.
• Financial Markets and Products (30%) — instruments and markets, including derivatives.
• Valuation and Risk Models (30%) — valuation techniques and the core risk models.

Together, Financial Markets and Products and Valuation and Risk Models make up 60% of Part 1, so they reward the most study time.

FRM Part 2 — risk in practice

Part 2 shifts from foundations to application — how institutions measure, manage and report risk — across six topic areas:

• Market Risk (20%)
• Credit Risk (20%)
• Operational Risk (20%)
• Liquidity and Treasury Risk (around 15%)
• Investment Risk Management (around 15%)
• Current Issues in Financial Markets (around 10%)

The three highest-weighted areas — market, credit and operational risk — together account for roughly 60% of Part 2.

Exam format: how Part 1 and Part 2 differ

Part 1 is a computer-based exam of 100 equally weighted multiple-choice questions over four hours. Part 2 has 80 multiple-choice questions and focuses on practical application rather than foundational recall. You must pass Part 1 before your Part 2 result is recognised, and GARP also requires relevant work experience to earn the full FRM designation.

How the two parts connect

Think of Part 1 as the vocabulary and grammar of risk, and Part 2 as using it fluently. The quantitative methods and product knowledge from Part 1 underpin the market, credit and operational risk material in Part 2 — which is why most candidates take them in order and don't leave a long gap between the two. Keeping technical skills current between sittings helps; CPD for finance professionals can support that.

Frequently asked questions

Can I sit both parts on the same day? GARP offers Part 1 in the morning and Part 2 in the afternoon on exam day, but your Part 2 result only counts once you've passed Part 1.

Which part is harder? Many candidates find Part 2 more demanding because it's application-heavy, though Part 1's quantitative content challenges those with less maths background.

How many topics are there in total? Four in Part 1 and six in Part 2.

Do I need work experience? Yes — GARP requires relevant risk-related work experience to be certified, in addition to passing both exams.

How to approach each part

Because Part 1 is foundational and quantitative, it rewards getting the maths and core concepts genuinely solid rather than memorising — the material in Part 2 assumes you can apply those tools fluently. Part 2, being application-heavy, rewards working through realistic risk scenarios and past-style questions rather than re-reading theory. A common pattern is to sit them in order with only a short gap between, so the Part 1 toolkit is still fresh when you reach the practical risk material in Part 2. Leaving a long gap tends to mean re-learning quantitative methods you'd already covered.

Choosing when to sit

GARP offers the FRM exams in set windows during the year, with Part 1 in the morning and Part 2 in the afternoon on exam day — but remember your Part 2 result only counts once Part 1 is passed, so sitting both same-day is a gamble unless you're confident on Part 1. Most candidates pass Part 1 first, then prepare specifically for Part 2. Always confirm current exam dates, windows and fees on GARP's site, as these are set per cycle.

Beyond the exams: earning the designation

Passing both parts is necessary but not sufficient for the full FRM designation — GARP also requires two years of relevant work experience in financial risk management (or a related field). You can pass the exams first and accumulate the experience around them, but you won't be certified as an FRM until the experience requirement is met and verified.

Frequently asked questions

Can I take Part 2 before Part 1? You can sit them on the same day, but Part 2 only counts once Part 1 is passed — so in practice Part 1 comes first.

How long does the FRM take? Many candidates complete both parts within a year, then satisfy the two-year experience requirement around or after the exams.

FRM or CFA? FRM is specialised in risk; the CFA is broader investment management. See our FRM vs CFA comparison.

Building risk expertise with Learnsignal

Whether you're preparing for the FRM or strengthening your risk knowledge for your current role, strong foundations matter. Learnsignal supports finance professionals with expert-led learning and verifiable CPD across core finance and risk topics.