Part II takes you from tools to applications. In the question what is FRM, this is the part that looks most like real risk work.
Topic areas
GARP's Part II typically covers
- Market risk measurement and management
- Credit risk measurement and management
- Operational risk and resilience
- Liquidity and treasury risk measurement and management
- Risk management and investment management
- Current issues in financial markets
What changes from Part I
Less about building basic tools, more about applying them in market, credit and operational settings, and understanding regulation and real-world cases.
Why current issues matter
This area connects the syllabus to recent developments and lessons from crises.
Preparation tips
- Revisit Part I quantitative topics, because Part II assumes them
- Study cases and examples
- Practise application questions
- Take timed mocks
Timing
Plan Part II soon after Part I, within the allowed period
Common mistakes
- Treating it as a repeat of Part I
- Skipping current issues
TWSS guidance
TWSS can help you plan the FRM course across both parts.
Heading into Part II? Speak to a TWSS counsellor.
