GARP FRM Part II Exam Blueprint: 2026 Risk Domains
Map the six 2026 FRM Part II domains, approximate weights and assigned Current Issues readings to practical readiness checks and Finance Prep practice.
Official scope and practice allocation
The 2026 GARP Learning Objectives and Study Guide specify six Part II domains. The official exam contains 80 equally weighted MCQs in 240 minutes. Domain weights are approximate blueprint allocations, not promises about the exact composition of a particular exam form.
| Domain | Official approximate weight | App bank | Public set |
|---|---|---|---|
| Market Risk Measurement and Management | 20% | 96 | 16 |
| Credit Risk Measurement and Management | 20% | 96 | 16 |
| Operational Risk and Resilience | 20% | 96 | 16 |
| Liquidity and Treasury Risk Measurement and Management | 15% | 72 | 12 |
| Risk Management and Investment Management | 15% | 72 | 12 |
| Current Issues in Financial Markets | 10% | 48 | 8 |
| Total | 100% | 480 | 80 |
The bank and public allocations are our practice design. They do not reproduce official items or replace the full assigned readings.
Readiness checks by domain
Market risk: Move between quantiles, expected shortfall and estimation uncertainty without treating VaR as a maximum loss. Explain what backtesting does and does not establish. Price and hedge under explicit short-rate, sensitivity, horizon and dependence assumptions; distinguish assessed capital-framework generations.
Credit risk: Keep physical default forecasting separate from risk-neutral pricing. Reconcile exposure, default probability, recovery, discounting and netting boundaries. Assess credit portfolios, derivatives and securitized exposures using the case’s loss allocation, dependence and contractual terms.
Operational risk and resilience: Connect an event to the failed control and its owner. Interpret loss data and indicators without equating missing reports with low risk. Compare model validation, governance, third-party controls and recovery capability. Identify the date and jurisdiction of supervisory or capital requirements.
Liquidity and treasury: Separate market liquidity, funding liquidity and solvency. Trace cash flows and collateral needs through stress, intraday payments and funding arrangements. Calculate ratios using their defined eligibility, haircut, cap and horizon rules; distinguish earnings sensitivity from economic-value sensitivity.
Risk and investment management: Explain factor exposures, portfolio contributions, benchmark-relative risk and performance. Check risk-budget and mandate constraints. Understand incentives, leverage, redemption limits and valuation in hedge funds and private investments; smoothing is not proof of low underlying risk.
Current Issues: Apply the arguments and limitations of the eight assigned 2026 readings, not general financial news. The set comprises IMF capital-markets AI, FSB financial-stability AI, BIS private-credit drivers, IMF geopolitical risk, BIS monetary/fiscal stability and rising government debt, IMF unbacked crypto assets, IMF tokenization, and Banco de España digital resilience. Keep the older crypto-policy discussion separate from later binding implementation.
Using this map
For each assigned learning outcome, explain the mechanism, work a changed-input example and state one limitation. When a question crosses domains, keep one primary route for your revision notes but record the connected capability. A familiar formula or high score in one topic does not establish whole-exam readiness.
Use the official reading list and policy links to check the annual edition, the Study Plan to schedule the work and the 80-question free exam for a fixed mixed check. Source check: October 15, 2026; no 2027 syllabus claim.