GARP FRM Part II Practice Test: Applied Financial Risk
Prepare for the 2026 FRM Part II curriculum with applied Finance Prep questions, an 80-question free exam and explanations across six risk domains.
See FRM Part II practice updates and share feedback .
Use Finance Prep to practise the decisions behind a risk estimate, a credit exposure, a control failure or a funding plan. The FRM Part II bank follows the 2026 curriculum across all six domains. Its self-contained applied cases combine relevant facts, calculations and constraints; every question has four choices, one best answer and explanations for every choice.
The 80-question free practice exam provides a fixed, exam-length check. Continue with fresh topic drills or mixed sessions in the app, rather than relying on recognition from repeating that public set. These are original independent questions, not official GARP questions, copied live-exam content or exam dumps. Mastery Exam Prep and Finance Prep are not affiliated with or endorsed by GARP.
FRM Part II at a glance
| Item | Preparation boundary |
|---|---|
| Official assessment | 80 equally weighted multiple-choice questions in four hours, delivered by computer-based testing |
| Curriculum | 2026 FRM Part II; applied risk-management work supported by Part I tools |
| Available app practice | Independent applied questions with complete answer explanations |
| Public practice | 80 questions; an optional 240-minute pacing exercise |
| Official passing percentage | No universal fixed percentage is established by the official sources used here |
GARP’s Program and Exams , FAQs and 2026 Learning Objectives, Study Guide and Candidate Guide control the official facts. The reviewed guide copies carry a March 2026 revision footer; the latest public source check is October 15, 2026. This is not a claim of 2027 coverage. Use the materials and corrections assigned to your registration.
What you will practise
| Domain | Approximate official weight | Applied work |
|---|---|---|
| Market Risk Measurement and Management | 20% | VaR/ES, backtesting, dependence, valuation, hedging and model limitations |
| Credit Risk Measurement and Management | 20% | Default, recovery, credit portfolios, counterparty exposure and credit valuation |
| Operational Risk and Resilience | 20% | Controls, loss data, governance, model risk, resilience and framework-specific capital |
| Liquidity and Treasury Risk Measurement and Management | 15% | Funding, collateral, liquidity stress, transfer pricing and balance-sheet sensitivity |
| Risk Management and Investment Management | 15% | Portfolio risk, performance, allocation, factor exposures and investment structures |
| Current Issues in Financial Markets | 10% | The eight assigned 2026 readings and their AI, private-credit, geopolitical, government-debt, crypto, tokenization and resilience mechanisms |
A numerical result is only part of a risk decision. Identify the horizon, probability measure, valuation convention and constraint before choosing a method. Historical capital frameworks can remain assessed material without becoming current law in every jurisdiction. An empirical association in an assigned reading is not a universal causal rule.
Use the Exam Blueprint to check scope, the Study Plan to organize reading and practice, the Cheat Sheet to check formulas and assumptions, and Official Resources for controlling materials.
Scores, certification and access
Your practice percentage describes the questions you attempted; it is not an official FRM passing score or a validated pass prediction. Review incorrect answers and correct guesses against the assigned readings. Passing Part II alone does not award the FRM certification; GARP also requires Part I and relevant professional experience under its program rules.
An active Finance Prep subscription or fixed-length access pass includes this bank and other Finance Prep banks during its access period. Sign in with the same account on web and supported mobile devices. App preview allowances are separate from this public set. No separate FRM Part II flashcard collection is available at this release.
Report unclear items in the app and follow updates in My reports. Use support for account, access or billing help. The bank can expand or refine as useful practice needs, feedback and annual curriculum changes are reviewed.
Choosing a different GARP qualification? Compare FRM, FRR, SCR and RAI by subject, assessment and preparation needs.
In this section
- GARP FRM Part II Cheat Sheet: Measures and Risk DecisionsCheck FRM Part II tail measures, credit loss, counterparty valuation, liquidity, portfolio contributions and Current Issues assumptions with worked examples.
- GARP FRM Part II Study Plan: Reading, Cases and MocksUse an adaptable eight-block FRM Part II plan for official readings, quantitative cases, Current Issues, error review and four-hour mixed practice.
- GARP FRM Part II Exam Blueprint: 2026 Risk DomainsMap the six 2026 FRM Part II domains, approximate weights and assigned Current Issues readings to practical readiness checks and Finance Prep practice.
- Free FRM Part II Practice Exam: 80 Applied Risk QuestionsTry 80 original FRM Part II questions across six 2026 domains, with complete answer explanations and an optional four-hour pacing exercise.
- GARP FRM Part II Practice Updates and FeedbackSee the release of 480 original FRM Part II questions and an 80-question public set, and share private feedback on unclear risk cases or calculations.
- GARP FRM Part II Official Resources: Guides and PoliciesFind GARP's FRM guides, learning outcomes, exam policies and 2026 reading boundaries, with dated-source guidance for regulatory examples.