FRM Part 2 Exam 2026: Dates, Syllabus, Fees & Key Changes

FRM Part 2 Exam: What It Is and Why It Matters

The FRM Part 2 exam is the second and final level of the Financial Risk Manager certification, administered by the Global Association of Risk Professionals (GARP). While Part 1 tests foundational risk concepts — quantitative analysis, financial markets, and valuation models — Part 2 shifts the focus to practical application: how risk frameworks are implemented in actual institutions, how capital requirements are calculated, and how risk models are validated and stress-tested.

Passing Part 2 is the final exam requirement before earning the FRM designation. After clearing both parts and accumulating two years of relevant professional experience, candidates can apply to GARP for full certification. For risk professionals in India and globally, the FRM designation signals specialised expertise in market risk, credit risk, operational risk, and regulatory capital — domains that are central to roles in banks, asset management firms, insurance companies, and consulting practices.

This guide covers everything you need to know about the FRM Part 2 exam in 2026: exam windows and dates, fees in INR, eligibility prerequisites, the full syllabus with topic weights, exam format, pass rate trends, key differences from Part 1, what has changed this year, and the study hours needed to clear it.

What Are the FRM Part 2 Exam Dates and Windows in 2026?

The last FRM Part 2 window of 2026 runs November 21–25, per GARP's published calendar; its registration has closed, and the May and August 2026 windows are over. For the next windows and their deadlines, see our FRM exam dates hub. GARP offers the FRM exam in three windows each year: May, August, and November. GARP added the August window for Part 1 in 2022 and for Part 2 in 2023, expanding from the historical two-window structure. Each window spans several days, during which candidates schedule a specific appointment at a PSI test centre. Indian candidates typically sit at centres in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune.

Dates as published on garp.org for the 2026 cycle. Candidates should confirm exact dates and deadlines on the official GARP website before registering, as windows are subject to change.

Candidates should note that preferred test centre slots fill quickly in Indian metros — registering during the early window secures both a lower fee and a more convenient appointment time.

Who Is Eligible for FRM Part 2?

Anyone who has passed FRM Part 1, or who sits both parts in the same window, is eligible for Part 2 — there is no separate degree, age, or work-experience requirement to sit the exam itself. You must clear Part 2 within four years of your Part 1 pass, or the Part 1 result expires. The two-year work-experience requirement applies only to earning the final FRM designation, not to sitting either exam. The full eligibility structure:

• Pass Part 1 first, or sit both in one window. You can register for Part 2 after a confirmed Part 1 pass, or sit both parts in the same exam window (on the same day only in August). If you sit both together, GARP grades Part 2 only if you pass Part 1. Results from Part 1 are typically released six to eight weeks after the exam window closes.
• No educational prerequisites. Unlike CFA, GARP does not require a bachelor’s degree or specific educational qualification to register for or sit the FRM exams. Anyone can register for FRM Part 1, and a Part 1 pass (or sitting both parts in one window) opens Part 2.
• Time limit. Candidates must pass Part 2 within four years of passing Part 1. If you do not clear Part 2 within this window, your Part 1 result expires and you must re-sit Part 1.
• Work experience (for certification, not the exam). To earn the FRM designation after passing both parts, you must demonstrate two years of relevant professional experience in financial risk management or a related field. This experience can be gained before, during, or after the exams.

How Much Does FRM Part 2 Cost in INR in 2026?

FRM Part 2 costs USD 600 (~₹58,000) with early registration or USD 800 (~₹77,300) at the standard rate, per GARP's published fee schedule — plus a one-time USD 400 (~₹38,600) enrolment fee if you haven't already paid it with Part 1. GARP charges all fees in USD; with the rupee at about ₹97 per US dollar (October 2026), these translate to meaningful amounts for Indian candidates, and GST is added at checkout on top of the listed fee.

USD fees as published on garp.org for the 2026 cycle. INR amounts are approximate at about ₹96.6/USD (October 2026); actual INR cost depends on exchange rate and applicable taxes (GST) at the time of payment.

Most candidates will have already paid the enrolment fee when registering for Part 1. If so, only the exam registration fee applies for Part 2. At the early registration rate, the Part 2 exam costs approximately ₹58,000. At the standard rate, it rises to about ₹77,300 — a difference of nearly ₹19,300 for the same exam.

Beyond the exam fee, Indian candidates should budget for study materials. GARP provides the official curriculum as part of the registration fee (digital access). Third-party providers like Kaplan Schweser and AnalystPrep charge approximately ₹12,000–₹40,000 for Part 2 notes and question banks. A coaching programme adds roughly ₹25,000–₹70,000 depending on the provider and format.

What Is the FRM Part 2 Syllabus and Topic Weights for 2026?

The 2026 FRM Part 2 syllabus covers six topic areas, weighted per GARP's official schedule: Market Risk (20%), Credit Risk (20%), Operational Risk & Resilience (20%), Liquidity & Treasury Risk (15%), Risk Management & Investment Management (15%), and Current Issues in Financial Markets (10%). Unlike Part 1, which tests foundational knowledge across quantitative methods and market instruments, Part 2 focuses on practical application — how institutions measure, manage, and report risk in practice.

The three highest-weighted topics — Market Risk, Credit Risk, and Operational Risk — together account for 60% of the exam. This is where the majority of your study time should be directed. A candidate who achieves strong command of these three areas and competent understanding of the remaining three is well positioned to pass.

Topic-by-Topic Breakdown

Market Risk Measurement & Management (20%): Covers parametric and non-parametric VaR models, expected shortfall, backtesting methodologies, exotic option risk, and term structure models. Candidates should be comfortable with model assumptions, limitations, and the regulatory shift from VaR to Expected Shortfall under the Fundamental Review of the Trading Book (FRTB).

Credit Risk Measurement & Management (20%): Encompasses credit scoring models, default probability estimation (structural and reduced-form approaches), credit portfolio models (CreditMetrics, CreditRisk+), counterparty credit risk, CVA/DVA, and netting arrangements. The integration of wrong-way risk and central clearing concepts has gained emphasis in recent exam cycles.

Operational Risk & Resilience (20%): Covers the Basel framework for operational risk capital, loss data collection, scenario analysis, key risk indicators, business continuity, and cyber risk. The 2026 curriculum places increased emphasis on operational resilience — including third-party risk management and IT resilience frameworks.

Liquidity & Treasury Risk Measurement & Management (15%): Focuses on funding liquidity risk, market liquidity risk, the Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), intraday liquidity management, and asset-liability management in a banking context.

Risk Management & Investment Management (15%): Covers portfolio risk measures, hedge fund risk, performance attribution, factor models, and risk budgeting. This topic bridges risk management with investment practice and tests candidates on how institutional investors measure and manage portfolio-level risks.

Current Issues in Financial Markets (10%): This topic changes each year. For the 2026 cycle, GARP has indicated focus areas including climate risk and transition planning, artificial intelligence and machine learning in risk management, digital asset risk frameworks, and the evolving regulatory landscape post-Basel III finalisation.

What Is the FRM Part 2 Exam Format?

FRM Part 2 is a 4-hour, computer-based exam with 80 multiple-choice questions (four options each), delivered at PSI test centres worldwide with no negative marking — averaging 3 minutes per question. The format is consistent across all exam windows.

With 80 questions in 4 hours, candidates have exactly 3 minutes per question. This is slightly more generous than Part 1 (which has 100 questions in 4 hours, giving 2.4 minutes each), but Part 2 questions are typically more complex and scenario-based, requiring careful reading and multi-step reasoning. Time management remains critical — candidates who spend excessive time on early questions often rush through the final 15–20 questions.

What Is the FRM Part 2 Pass Rate?

The FRM Part 2 pass rate was 50% in the November 2025 sitting, per GARP-reported figures, and has held in the 50–53% range in every window since 2023. From 2019 to 2022 it ran higher, at 57–63%, and well above Part 1. That gap was a self-selection effect: candidates who reach Part 2 have already demonstrated the ability to pass a rigorous quantitative exam, and weaker candidates have exited the pipeline. Since mid-2024, though, Part 1's pass rate has been higher than Part 2's in three of GARP's last four windows.

In plain terms: about three in five Part 2 candidates passed from 2019 to 2022; since 2023 it has been closer to one in two.

Source: GARP's FRM historical pass-rate sheet (May 2019 to May/August 2023), GARP's FRM program page via archived snapshots (November 2023 to May/August 2025) and GARP's current program page (November 2025), checked in October 2026. The table lists every window GARP has published since 2019. GARP publishes the official pass rate after each window; refer to garp.org for the latest verified figures.

GARP's figures show two phases. From 2019 to 2022, Part 2 pass rates held between 57% and 63%. From the May/August 2023 window onward they settled at 50–53%, ending at GARP's November 2025 figure of 50%. GARP has not published a reason for the step down. There is also no steady May-versus-November pattern: November came out higher in some years and lower in others.

For 2026 candidates, the implication is that the exam is genuinely passable — roughly one in every two candidates clears it. But a pass rate of 50–53% also means that candidates who underprepare on high-weight topics or neglect practice questions face meaningful risk of failure.

Is FRM Part 2 Harder Than Part 1?

Part 2 is different rather than uniformly harder: it's more applied and regulatory (scenario analysis over formula application), while Part 1 is more quantitatively intense with broader conceptual coverage. Part 2's pass rate (50–53% in GARP's windows since 2023, vs. 45–58% for Part 1) comes from a self-selected candidate pool that has already cleared Part 1, so it does not signal lower absolute difficulty — in content terms, Part 2's depth around Basel regulations, model validation, and credit derivatives exceeds Part 1.

The most significant difference is the nature of the questions. Part 1 often tests whether you can apply a formula correctly. Part 2 tests whether you understand the assumptions behind the formula, the scenarios in which it fails, and the regulatory framework that mandates its use. Candidates who rely heavily on rote memorisation for Part 2 tend to struggle with the scenario-based questions that require synthesis across multiple readings.

Part 2's pass rate should not be read as a sign that the exam is easier. Candidates who reach Part 2 are a more prepared and self-selected group, yet only about half of them have passed in recent windows. In absolute terms, the content complexity of Part 2 — particularly around Basel regulations, model validation, and credit derivatives — exceeds that of Part 1.

What Changed in FRM Part 2 for 2026

Key 2026 changes include the "Operational Risk and Resilience" topic renaming (weight unchanged at 20%, with more cyber and third-party risk emphasis), continued integration of the finalised Basel III framework into Credit Risk and Market Risk, a refreshed Current Issues reading list (AI/ML model risk, climate stress testing, digital assets), and liquidity material reflecting post-2023 banking stress events. GARP updates the curriculum annually from the January study material release; always cross-check the latest GARP Study Guide and Learning Objectives for the definitive scope:

• Operational Risk & Resilience: The topic now sits under the name “Operational Risk and Resilience” in the 2026 curriculum, reflecting the post-2023 rebrand from the older “Operational and Integrated Risk Management” framing. The weight remains at 20%, with continued emphasis on operational resilience frameworks, third-party risk management, and cyber risk — reflecting the growing regulatory focus on resilience from supervisors such as the Bank of England, the European Banking Authority, and the Reserve Bank of India.
• Basel III finalisation (endgame): The Credit Risk and Market Risk topics continue to integrate the finalised Basel III framework, including the revised standardised approaches and FRTB-related developments. Candidates should expect questions that test understanding of how these changes affect capital calculations relative to the previous framework.
• Current Issues refresh: The Current Issues topic (10%) is refreshed each year. For 2026, themes typically covered in this section include AI/ML model risk, climate risk stress testing methodologies, digital asset risk frameworks, and geopolitical risk transmission channels. Specific readings change annually and are usually sourced from recent GARP-published research, BIS papers, and FSB reports — download the current reading list from garp.org for the definitive scope.
• Liquidity topic: Liquidity and treasury risk material continues to reflect post-2023 regulatory developments following the Silicon Valley Bank episode and related banking stress events — with emphasis on intraday liquidity risk and contingent liquidity obligations.
• Study material format: GARP provides a fully digital curriculum with interactive features. The official curriculum is included with registration at no additional cost.

How Many Study Hours Does FRM Part 2 Require?

Based on GARP's candidate surveys and prep-provider data, the typical preparation time for FRM Part 2 is in the range of 200–240 hours. Candidates who have recently passed Part 1 and retain strong foundational knowledge usually sit at the lower end of this range. Candidates with longer gaps between Part 1 and Part 2 (two or more years) often need 240–280 hours to rebuild foundational concepts while absorbing the applied Part 2 material.

The study hour distribution should roughly mirror the topic weights:

Effective preparation for FRM Part 2 should begin 4–5 months before the exam window. A study plan of 13–15 hours per week over 15–17 weeks provides sufficient coverage with time for practice exams and revision. Candidates who start late typically need to accelerate to 18–20 hours per week, which is sustainable only if work and personal schedules permit.

Mock exams are particularly important for Part 2. The scenario-based question format means that practising under timed conditions is essential — understanding concepts is not sufficient without the ability to apply them under time pressure. Aim for at least three full-length mock exams, with detailed review of every incorrect answer.