GARP FRR Exam Blueprint: Four Financial-Risk Modules
Map the four equally weighted FRR modules, the official 80-question assessment and the difference between GARP scope and Finance Prep practice.
Official scope and format
The currently linked GARP Study Guide and Learning Objectives, dated June 2025 and checked October 14, 2026, organizes FRR into 21 chapters across four equally weighted modules. The assessment has 80 MCQs in 175 minutes. GARP publishes 54 correct answers out of 80 as the passing count.
| Module | Official weight | Guide chapters | Live app questions | Public questions |
|---|---|---|---|---|
| Credit Risk Management | 25% | 4 | 100 | 20 |
| Market Risk Management | 25% | 7 | 100 | 20 |
| Operational Risk Management | 25% | 5 | 100 | 20 |
| Asset and Liability Management | 25% | 5 | 100 | 20 |
| Total | 100% | 21 | 400 | 80 |
Official weights guide preparation; they are not a guarantee that every sitting presents exactly 20 questions from each module. Chapter counts are not weights, and the public set’s 20-per-module allocation is editorial.
Credit Risk Management
Connect lending and counterparty exposures to default, loss severity and portfolio risk. Practise consumer, SME, corporate and sovereign analysis; collateral and enforceability; securitization, credit derivatives, monitoring, stress testing and workouts. Keep expected loss, unexpected loss and accounting impairment distinct. A counterparty’s derivative exposure is not automatically its notional amount.
Market Risk Management
Understand cash and derivative instruments before applying risk measures. Work through FX direction, forwards, swaps, bonds, options, valuation, duration/PV01, VaR, expected shortfall, factor models, back-testing and reporting. Historical regulatory approaches remain learning material; a question about an older framework does not make it the operative rule in every jurisdiction.
Operational Risk Management
Assess risk identification, event and loss data, RCSA, indicators, governance, scenarios, third parties, insurance and controls. Distinguish management ownership from risk/compliance oversight and independent audit assurance. Identify the specific operational-capital framework before applying a formula; historical and current approaches do not share interchangeable inputs.
Asset and Liability Management
Interpret interest-rate and funding exposures, repricing and liquidity gaps, balance-sheet measures, transfer pricing, capital allocation and risk-adjusted profitability. Distinguish earnings effects from economic-value effects, contractual cash flows from behavioural assumptions, and regulatory minimum ratios from wider stress survival.
Turn scope into evidence
For every module, practise three checks: what is being measured, which inputs or assumptions are necessary, and what conclusion the evidence does not support. Review both incorrect answers and correct guesses. Our applied cases may connect several capabilities in one decision; they do not replace reading all assigned objectives.
The practice format is four-option, select-one MCQ. Official option count, scored/unscored breakdown and calculator availability remain unverified in the public sources reviewed. Confirm candidate instructions with GARP/Pearson VUE rather than inferring them from our pages.
Continue with the Study Plan , 80-question free practice and official materials .