Study credit governance, scoring, default probability, Credit VaR, portfolio dependence, counterparty exposure, xVA, collateral, clearing and securitisation.
Qualification facts verified against FRM Part II Credit Risk Measurement and Management book scope. Last checked 2026-08-01. Official GARP FRM study-materials page. The supplied official book controls the 23-chapter learning content. Current GARP sources verify the Part II domain structure and official exam format.
Credit Risk Measurement and Management practice inventory
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Which statement correctly defines Credit score?
Credit Risk Measurement and Management moves from credit fundamentals, governance and scoring into default probability, Credit VaR, portfolio dependence, derivatives and counterparty exposure, credit derivatives, netting, collateral, central clearing, xVA, stress testing and securitisation.
This course keeps all 23 chapters together as one book-level learning hub. Detailed summaries show the method and assumptions, 252 flashcards build active recall, the 273-item reference sheet supports fast review, and the AI tutor is grounded in the supplied Credit Risk Measurement and Management source.
The five course mocks each contain 20 questions and run for 60 minutes, preserving the official Part II pace of three minutes per question. Mocks 1-4 contain 80 distinct questions; Mock 5 takes an equal sample from those papers. The 70% platform result is a book-level mastery target, not an official GARP pass mark.
The official FRM Part II exam contains 80 equally weighted multiple-choice questions across all Part II domains and lasts four hours. Complete the other printed books and the required Current Issues readings before full Part II practice.
| Assessment | Book-level topical practice: 20 multiple-choice questions in 60 minutes. The official FRM Part II exam covers all Part II domains with 80 equally weighted questions in four hours. |
| Duration | 60 Minutes |
| Feature | Exams Academy | Details |
|---|---|---|
| Access Period | Lifetime Access | One-time enrollment with no recurring fee |
| Practice Exams | Unlimited Retakes | Five 20-question timed book-level mock exams |
| Study Support | Instant 24/7 AI Tutor | Self-service AI support; live instructor support is not included |
| Cost | $89 (One-Time) | One-time payment with no recurring subscription |
Test the 23-chapter book through five 20-question practice papers at the official Part II pace.
Clarify default, dependence, exposure, collateral, xVA and structured-credit relationships.
Strengthen memory with 252 flashcards and a 273-item searchable reference sheet.
Connect each measure with its inputs, workflow, interpretation and residual risk.
Use the same question bank in two different ways: build understanding with instant feedback, then switch to a realistic simulation when you are ready.
Choose an answer, see immediately whether it is right or wrong, and read the explanation before moving on.
Work against the official-style timer without revealing answers, then review your score and every explanation after submission.
Credit risk, distress concepts, credit-generating transactions and exposed entities.
Three lines of defense, origination, assessment, approval and credit committees.
Policy, limits, classification, provisioning, IFRS 9 and workout.
Expected and unexpected loss, portfolio contribution and economic capital.
CAMEL, credit inputs, RWA, Merton, model families and RAROC.
Scoring, ratings, TTC/PIT, development, validation and agencies.
Retail risk, scorecards, cutoffs, CAP/AR and risk-based pricing.
Country risk, local and foreign-currency default, ratings and market measures.
Ratings, migration, hazard rates, recovery, CDS and Merton PD.
Transition-based Credit VaR, Vasicek, CreditRisk+, CreditMetrics and spread risk.
Default dependence, single-factor models, joint default, simulation and granularity.
Derivative exposure, CVA/DVA, mitigants, default models and Gaussian copula.
CDS, indices, options, baskets, synthetic CDOs and implied correlation.
Exchange and OTC markets, clearing, ISDA, margin, CCPs and model risk.
Counterparty versus lending risk, exposure, CVA, limits and xVA costs.
Payment and value netting, close-out, set-off, compression and termination.
CSA terms, margin calculations, haircuts, disputes, segregation and rehypothecation.
Novation, multilateral offset, margin, default funds and the loss waterfall.
EE, PFE, EPE, exposure profiles, aggregation, collateral and funding.
CVA, DVA, BCVA, allocation, collateral and wrong-way risk.
Loan, derivative and CVA stresses, stress loss, DVA and pitfalls.
Tranches, waterfalls, correlated-default simulation and implied correlation.
SPV structures, motives, enhancement, pool metrics and prepayment.
Preparation centre
Use these connected guides for the syllabus, exam format, booking and revision strategy.
No. This course covers the Credit Risk Measurement and Management printed book. Candidates also need the other Part II books and the required Current Issues readings.
GARP describes Part II as 80 equally weighted multiple-choice questions completed in four hours across all Part II domains.
No. They are book-level topical practice. Full Part II practice should combine every domain and Current Issues in the official 80-question format.
The course preserves the official Part II pace of three minutes per question: 20 topical questions in 60 minutes.
No. GARP does not publish a fixed percentage pass mark. The platform uses 70% only as an internal mastery target.
No. Exams Academy is an independent education provider and is not affiliated with or endorsed by GARP.
You receive lifetime access to this course content with no recurring subscription fee.
Yes! Test your knowledge and see our AI tutor explanations with the free GARP FRM Part II — Credit Risk Measurement and Management (Book 2) Sample Paper. It contains 15 questions from one named topic and is not a full mock exam or overall readiness assessment.
Master this FRM curriculum book with source-grounded summaries, active recall and clearly scoped book-level practice before combining it with the rest of the curriculum.
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