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.

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.