FRM® Program — Risk Application FRM Part II:
FRM Part II:
Applied Risk Management
Part II is the culmination of the FRM journey. It focuses on the practical application of risk management tools across Market, Credit, and Operational domains, alongside current market issues.
80 MCQ Questions
4 Hours Total Testing Time
3 Exam Windows / Year
300+ Study Hours Rec.
2025 Curriculum
Topic Area Weightages
FRM Part II is divided into six domains. The weights reflect the complexity and importance of Market and Credit risk in global banking.
Part II 6 Domains
| Domain / Subject | Weightage | Curriculum Focus & Key Topics |
|---|---|---|
| Market Risk Measurement and Management | 20% | Deep dive into VaR, Expected Shortfall, and extreme value theory. Covers fixed income, options, and currency market risk in professional trading environments. |
| Credit Risk Measurement and Management | 20% | Focuses on default risk, credit ratings, and credit derivatives. Understand CVA (Credit Valuation Adjustment) and how to manage counterparty risk in OTC markets. |
| Operational Risk and Resiliency | 20% | Covers model risk, cyber risk, and operational resilience. Includes the Basel regulatory framework (Basel III/IV) and how banks manage non-financial risks. |
| Liquidity and Treasury Risk | 15% | Management of liquidity funding and market liquidity risk. Explores the role of the treasury in banks, including asset-liability management (ALM) and transfer pricing. |
| Risk Management and Investment Management | 15% | How risk tools apply to the buy-side. Includes portfolio risk, performance attribution, and the risk of hedge funds and private equity funds. |
| Current Issues in Financial Markets | 10% | The 'Living' part of the exam. Covers AI in finance, climate risk, digital assets, and the impact of major global financial events on risk frameworks. |
The CapTech Advantage From Formula to
From Formula to
Strategic Insight
Part II is where you learn to 'think like a CRO'. It's not just about the calculation; it's about the decision. Our coaching helps you navigate the complex trade-offs of modern risk management.
- Case-Based Training: We analyze actual bank failures and risk events.
- Regulatory Deep-Dive: Basel III/IV frameworks explained by practitioners.
- Current Issues Lab: Monthly sessions on evolving risks (AI, ESG, Crypto).
- Interview Prep: Preparing you for risk management roles at top global firms.
FRM Strategy
The Holistic View
"At Part II, you are no longer just looking at one instrument. You are looking at the entire enterprise. Our goal is to give you the strategic vision required at the highest levels of finance."