The Part II exam format

Part II has 80 equally weighted multiple-choice questions in four hours, taken on a computer at a test center. It covers six topic areas.

Questions	80, equally weighted
Time	4 hours
Format	Multiple choice, computer-based
2027 windows	May, August and November

How the exam is built

80 multiple-choice questions, all weighted equally.
Four hours, computer-based, at a test center.
Two sheets of scratch paper and a pencil are provided. Formula sheets are not.
Only GARP's approved business calculators may be used.

The six topic areas

Topic area
Market Risk Measurement and Management
Credit Risk Measurement and Management
Operational Risk and Resilience
Liquidity and Treasury Risk Measurement and Management
Risk Management and Investment Management
Current Issues in Financial Markets

Approved calculators

HP 12C (including the Platinum, 25th and 30th Anniversary editions and the Prestige)
TI BA II Plus (including the Professional)
HP 10B II
HP 10BII+
HP 20B

Part I and Part II

Part I and Part II can be sat on the same day only in August, with Part II in the afternoon; in May and November they can be sat in the same window on different days.
If you fail or miss Part I in a window where you also sat Part II, Part II is not graded.
Part II must be passed by December 31 of the fourth year after passing Part I.

Try 4 questions

Question 1Estimating VaR and expected shortfall: historical, weighted and parametric

A historical simulation over 100 equally weighted daily scenarios gives these seven largest losses: $820,000, $760,000, $705,000, $690,000, $655,000, $610,000 and $598,000. The 95% VaR is taken as the loss with exactly five scenario losses larger than it. The one-day 95% VaR is closest to:

Question 2Credit analysis, ratings and capital structure

Which claim on a defaulted industrial company typically has the lowest loss given default?

Question 3Performance measurement and attribution

A fund returned 9.5% with volatility of 14% and tracking error of 3% against a benchmark that returned 8%. The risk-free rate was 2%. The fund's information ratio is closest to:

Question 4Operational resilience

A bank is identifying its important business services for an operational resilience program. Which of the following is an important business service rather than a resource that supports one?

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Questions people ask

How many questions are on Part II?

80 multiple-choice questions, all equally weighted.

How long is the Part II exam?

Four hours, the same as Part I.

Is there a formula sheet on Part II?

No. GARP's FAQ says formula sheets are not provided with the exam.

Which calculators can I use?

Only GARP's approved business calculators: the HP 12C (including its Platinum, Anniversary and Prestige editions), the TI BA II Plus (including the Professional), the HP 10B II, the HP 10BII+ and the HP 20B.