FRM Part 2 consists of 80 equally weighted questions which are mandatory and examined by a paper-and-pencil, multiple choice exam. You have four hours to complete the exam.
You’ll need to pass FRM Part 1 before your Part 2 paper will be marked.
Below is a syllabus overview detailing topics and their approximate exam weighting. For more information, please visit the GARP website.
|Part 2||Approximate exam weight|
|Operational Risk and Resiliency||20%|
|Liquidity and Treasury Risk Management||15%|
|Risk Management for Investment Management||15%|
This section tests your knowledge of market risk measurement and management techniques. Topics include VaR and other risk measures, modeling dependence, correlations and copulas, term structure models of interest rates, volatility - smiles and term structures.
This area focuses on your understanding of credit risk management with some focus given to structured finance and credit products such as collateralized debt obligations and credit derivatives. Topics include credit analysis, default risk (quantitative methodologies), expected and unexpected loss, credit VaR, counterparty risk, credit derivatives and structured finance and securitization.
Operational Risk and Resiliency
This area focuses on Operational Risk and Resiliency as well as Enterprise Wide Risk Management. Topics include principles for sound operational risk management, risk frameworks and culture, IT infrastructure and data quality. Other topics include model risk, validating ratings models, assessing the quality of risk measures, and the application of RAROC and ARAROC methodologies. In addition topics include stress testing, economic capital practices, Basel III reforms, money laundering, managing outsourcing risks and both operational risk and cyber risk resiliency.
Liquidity and Treasury Risk Management
This area focuses on funding liquidity risk, asset liquidity risk and treasury risk mangement. Topics include, liquidity and leverage, early warning indicators, liquidity stress testing, illiquid assets and contingency finding planning. A focus on asset liability management includes topics on managing and pricing deposit services, managing non deposit liabilities, risk management for changing interest rates, ALM and duration management techniques.
Risk Management for Investment Management
This area focuses on your knowledge of risk management techniques applied to the investment management process, including factor theory, portfolio construction, portfolio risk measures, risk budgeting, risk monitoring and performance measurement, portfolio-based performance analysis and hedge funds.
Select your package
FRM Part II always includes a focus on current risk issues. Big Data, Machine Learning, Artificial Intelligence, FinTech and Cyber Risk are all topics impacting the world around us. GARP selects these hot topics for each exam year selecting the current issues impacting and challenging risk management today and for the future
2. Study methods
Our study methods have been designed to maximise your time and help you pass your exam. Whichever study method you choose, you’ll receive high quality resources and continuous support right up to your exam.
Simply choose a study package below:
Study method comparison table
Package combining live online tuition and classroom revision study options with Kaplan Schweser study materials.
Study at your own pace with Live Online tuition and online revision classes. This package offers maximum flexibility for independent study and comes with integrated Kaplan Schweser study materials.
(VAT not applicable)
Or you can choose a revision classroom course without the supporting Kaplan Schweser study materials.
Classroom revision without the Kaplan Schweser study materials.
Timetables - Classroom and Live Online
Live Online tuition classes take place over 10 evenings of 3 hours each. Classroom revision courses take place over 3 days (from 9-5pm) and Live Online revision classes take place over 2 evenings of 4 hours each.
All classes take place at our Moorgate training centre:
Although we have designed our packages to include key items to assist you in preparing for your exam, there are additional items that you may choose to purchase:
Schweser Mock Exam 2
The Schweser mock exams are as close to the actual exam in format, difficulty, and length as we can make them. They help develop your test-taking skills, identify your weak areas, and demonstrate your mastery of the curriculum. This exam is your final rehearsal before exam day and can be taken online, printed at home or alternatively you can take it as an invigilated mock at our training centre.
if taken online (VAT not applicable)
Schweser's Secret Sauce
This is a concise review of the curriculum which provides insights and exam tips on how to effectively prepare and apply your knowledge on exam day. Available as a printed book and an ebook.
(VAT not applicable)
1-2-1 tutor sessions
A one hour 1-2-1 meeting with your tutor, either at our training location or online, within the last two weeks leading up to your exam. You can get your final questions answered before the exam day.
Calculator (BA II Plus Pro)
There are only certain business calculators authorised for use during your exam. We recommend the Texas Instruments BA II Plus Professional.
(from £41.67 exc. VAT)
Our public classroom courses run in central London. Like many of our courses, we can also offer these courses inhouse for your team or organisation. Please contact us on 020 7920 3060 or email us at email@example.com to find out more about how we can help train your team.
3. Exams, sittings and resits
There are two exam sittings per year, in May and November. You'll need to register with GARP® for exam entry. You can take both Part 1 and Part 2 exams in one day, but you must pass Part 1 before your Part 2 paper is graded. Exam results are either pass or fail, and you’ll receive your results within six weeks after the exam.
You are required to pass Part 2 within four years of passing Part 1.
How long does it take to pass?
Your preparation time will vary significantly based on your experience and background but, on average, GARP reports that candidates spend about 275 hours studying for each Part, and that some candidates study up to 400 hours. You’ll also need to demonstrate two years of relevant work experience to complete your certification.
What are pass rates like?
Passing Part 2 takes the same level of commitment as Part 1. GARP reported the May 2019 pass rate as 60%.
Can Kaplan help if I fail an exam?
We do all we can to help you to pass the exam. However, if you don't pass first time then don't worry. There are a lots of ways we can support you. What you will be entitled to will depend on the last study package you purchased with us.
What FRM resits are available
Below is a table showing you what resit support you will be entitled to depending on what package you purchased from us in the first place.
| ||Lifetime Pass Guarantee||Schweser Commitment||Pass Assurance|
|Classroom Enhanced||check||check|| |
|Blended Enhanced||check||check|| |
|Tuition Plus|| ||check||check|
|Distance Learning|| ||check|| |
|Tuition only|| || ||check|
|Revision only|| || ||check|
You can access your resit support by filling in the resit enrolment form.
Resit enrolment form
Lifetime Pass Guarantee
Lifetime pass guarantee is applicable to Classroom Enhanced and Blended Enhanced packages. Depending on your study option, you may qualify for unlimited weekday revision for free. You'll be able to make the most of our guarantee, right up until you pass the exam... however many times it may take. However, if you don't meet the criteria, then you may be entitled to Pass Assurance.
Terms and conditions – You'll need to have attended both the live or online tuition course and the live revision course in the same sitting with Kaplan. An attendance record of at least 90% is needed. This will be based on your signature given at class registers and/or the time you logged into online classes when using the online study portal. The Lifetime Pass Guarantee will expire if you do not attend 100% of the free weekday revision course or if an exam sitting is missed.
The Schweser Commitment
Schweser Commitment is applicable to Classroom Enhanced, Blended Enhanced, Distance Learning and Tuition Plus. Should you need a second chance, you may be eligible to receive the same material package at the next exam sitting for free. However, if you don't meet the criteria, then you may be entitled to PassProtection™ which entitles you to 50% off from your same-part purchases for the next exam sitting.
Terms and conditions – Available for 2019 purchasers of Complete Enhanced, Blended Enhanced, Tuition Plus, Distance Learning, Essential, Premium, or PremiumPlus™. You must answer at least 50% of the available questions from your QBank and Practice Exams. Your Performance Tracker dashboard will turn from red to green when your Questions Used shows at least 50%. If you meet the criteria you will receive the same study package (eBook and hardcopy) FREE of charge for the 2019 exam. Please note this does not include the delivery fee of £65 but you can opt to select just the ebooks which would not include the delivery fee. If you don't meet the criteria, you can still receive PassProtection™.
Pass assurance is applicable to Tuition Plus, Tuition Only and Revision Only. If you failed your exam then you can benefit from receiving 15% off a Revision course.
Terms and conditions – You should have taken a Tuition/Revision course with Kaplan.
4. Study materials and delivery costs
We offer a wealth of study materials to enhance your learning experience. These include hard copy books as well as online resources on Schweser’s study portal. View a full comparison of the study materials included in each package.
Blended Enhanced and Distance Learning packages come with core materials, including:
Getting Started Guide
Explains how to use the resources effectively to maximise your chance of passing the exam.
Schweser Online Study Portal
Includes dashboard with activity feed and performance metrics
Clear, concise study notes and examples that cover every learning outcome statement (downloadable as eBooks as well as in print).
A compact study tool summarising key formulae, definitions and concepts (downloadable as an eBook as well as in print).
A collection of online reference videos to prepare you for your studies.
Thousands of practice questions to work through online and build custom exams.
Schweser Checkpoint Exams
Two key tests that you will be prompted to work through online during your studies. These mimic the difficulty and format of the actual exam. Performance reports then highlight your understanding and weak areas where more review is needed.
Kaplan Schweser Practice Exams
2 full-length practice exams to help you perform on exam day.
Additional materials come with the following packages:
- Live Online Tuition Slide Pack
- Classroom Revision Materials - MindMap and Q&A Book inc. full mock exam
- Schweser Mock Exam 1 (Online or printable) plus online mock debrief
- Live Online Tuition Slide Pack
- Online Revision Workbooks
- Schweser Mock Exam 1 (Online or printable) plus online mock debrief
Materials are delivered to the address you provide us (and must be signed for on delivery). Please note, our packages include European delivery in the price.
Outside of Europe, delivery costs start at £41.67 (excluding VAT) with £16.67 (excluding VAT) payable for additional items added to your order.
5. Kaplan Schweser Online Study Portal
Kaplan Schweser’s online portal provides access to a wide variety of resources to help you prepare for your exams. It also hosts all our live online tuition and revision classes.
Depending on the study package you choose, features can include the following:
Dashboard (Activity feed and Performance Metrics) - Take the guesswork out of your study plan, and focus on the tasks that will help you pass.
Live Online Weekly Classes - 10 sessions of 3 hours each. Watch at your own convenience either live or recorded.
Ask your Instructor - Ask questions and receive answers from your tutor within 24 to 48 hours. (In addition, for those on classroom courses you will also receive personal tutor contact details.)
SchweserNotes™ - Clear, concise study notes and examples that cover every learning outcome statement (downloadable as eBooks as well as in print). These notes also include module quizzes and topic assessments which can demonstrate your level of mastery of a topic and where you need to focus additional attention.
Kaplan Schweser Quicksheet - A compact study tool summarising key formulae, definitions and concepts.
Resource Library - A collection of online reference videos to prepare you for your studies.
SchweserPro™ QBank - Thousands of practice questions to work through online and build custom exams.
Schweser Checkpoint Exams - You will be prompted to undertake these during your revision. Questions will mimic the difficulty and format of the actual exam and your performance report will identify how well you understand the topics that have been covered and highlight weak areas where more revision is needed.
Kaplan Schweser Practice Exams - 2 full-length practice exams to help you perform on exam day.
Schweser Mock Exam 1 and 2 - these are as close the actual exam in format, difficulty, and length as possible and will help develop your test-taking skills, identify your weak areas, and demonstrate your mastery of the curriculum.
For more information on technical support available and minimum system requirements for Kaplan Schweser’s online portal, visit the Schweser portal technical support.
You can access your content from 48 working hours of purchase (subject to availability) until your examination date.
6. Tutor support
We’ll support you every step of the way throughout your learning experience with us. You can contact a tutor and get the help you need within 48 working hours.
We are open weekdays (excluding bank holidays) 9:00am to 5.30pm. In addition, our classroom tutors will provide you with their personal contact details.
7. Testing and mocks
Vital to passing your exam will be attempting as many questions and mock exams as possible. Depending on your chosen package, you will gain access to over 1000 questions in the SchweserPro™ QBank, two checkpoint exams, two full exam standard mocks, one final online Schweser Mock Exam.
In addition, we offer an additional final Schweser Mock Exam 2 which can either be undertaken online, printed at home or taken as an invigilated exam at our training centre. This final dress rehearsal will:
- Provide additional question practice using exam standard questions that are not replicated in any other products.
- Provide final practise for your timings and techniques.
- Highlight any weak points in your knowledge so you can focus on these areas pre exam day.
You will also be provided with fully worked solutions at the end of the mock session.
After the mock, many candidates also take the opportunity of a final 1-2-1 meeting with a tutor.
You can find information about our mocks and 1-2-1s in our comparison table.
8. Course pricing and funding options
To keep decisions simple, we price per package including delivery fees (within Europe). The only additional decision is whether to purchase any optional extras.
You can find information about our packages and optional extras in our comparison table.
|Package||Price (excl. VAT)||Price (incl. VAT)|
|Distance Learning||£564 |705 (VAT not applicable)
Your employer may fund the costs of your studies if you’re already working in a related field and want to develop your learning. You’ll need to speak to them to see if you’re eligible and confirm that they’re happy to pay for your studies.
Our FRM packages are covered with our interest-free payment plan, providing the total cost is £500 minimum (including VAT). The plan lets you spread the cost of your studies over a period of up to 12 months, with no extra costs.
How to enrol
Enrol online, call us on 020 7920 3060 or enrol with a form which you can email to firstname.lastname@example.org.
Download enrolment form >