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Financial Risk Manager (FRM) Part I

Aimed at aspiring risk analysts and managers seeking to validate their knowledge of modern risk management tools. Passing is a prerequisite for sitting the FRM Part II exam and earning the full FRM certification.

Written against the published specification.

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Pass mark 60/100 240 minutes Real test fee approx $1200 USD Global Association of Risk Professionals (GARP) How many can I get wrong?
About this practice. Revision Robin is built and maintained by Bloor Engineering Ltd, a UK-registered company. Our Financial Risk Manager (FRM) Part I questions are written and reviewed in-house to match the current syllabus, each with a plain-English worked explanation. They are original practice material, not the official exam questions and not affiliated with or endorsed by Global Association of Risk Professionals (GARP). Always confirm current test rules, fees and content with the official provider. See our Terms and Privacy.
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Q1. A bank experiences a major system failure in its online banking platform due to a successful cyber-attack, leading to significant reputational damage and financial losses. This event is a primary example of which type of risk?
  • A.  Market Risk
  • B.  Credit Risk
  • C.  Operational Risk
  • D.  Business Risk
Show answer & explanation
✓ Answer: C. Operational Risk
Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. A cyber-attack is a classic example of an external event causing a systems failure.
Q2. A stock has a 30% chance of returning 15%, a 50% chance of returning 8%, and a 20% chance of returning -5%. What is the expected return of the stock?
  • A.  8.0%
  • B.  7.5%
  • C.  6.0%
  • D.  9.2%
Show answer & explanation
✓ Answer: B. 7.5%
The expected return is the probability-weighted average of all possible outcomes: (0.30 * 15%) + (0.50 * 8%) + (0.20 * -5%) = 4.5% + 4.0% - 1.0% = 7.5%.
Q3. A regression of asset returns on a market index yields a Durbin-Watson (DW) statistic of 0.75. What does this value most likely indicate?
  • A.  The presence of significant positive serial correlation in the residuals.
  • B.  The presence of significant negative serial correlation in the residuals.
  • C.  The absence of any serial correlation in the residuals.
  • D.  The presence of conditional heteroskedasticity.
Show answer & explanation
✓ Answer: A. The presence of significant positive serial correlation in the residuals.
A Durbin-Watson statistic significantly below 2.0 (a rule of thumb is < 1.5) suggests the presence of positive serial correlation in the regression's error terms, meaning errors are positively correlated with prior errors.
Exam mode
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100 random questions, real timing, marked against the official pass mark. Different every time.
The first 8 of 100 questions are free, with your score on them. Finishing the paper, your result against the pass mark and every answer explained come with the paid version.
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Topic drills
Ten quick questions on one topic, marked instantly with explanations.
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Foundations of Risk Management · 30
Fundamentals of Probability · 28
Regression and Time Series · 30
Financial Markets and Products · 30
Derivatives and Hedging Strategies · 30
Option Valuation Models · 19
Fixed Income and Interest Rate Risk · 20
Market and Credit Risk Models (VaR) · 20
Financial Risk Manager (FRM) Part I: common questions
Frequently asked
How many questions are in the Financial Risk Manager (FRM) Part I?
The exam has 100 questions. Every Revision Robin mock uses the same 100-question format so your practice matches the real thing.
What is the pass mark for the Financial Risk Manager (FRM) Part I?
You need 60 out of 100 correct to pass, which is about 60%. Our mocks mark you against this exact threshold.
How long do you get?
The test is timed at 240 minutes. Our full mock runs on the same clock so you can practise your pacing.
Are these the real exam questions?
No. Our questions are original and written to match the current syllabus, so they give realistic practice without copying the official paper. Every answer comes with a plain-English explanation. Always confirm current rules and content with Global Association of Risk Professionals (GARP).
How much does the official test cost?
The official Global Association of Risk Professionals (GARP) fee is approx $1200 USD. Revision Robin practice is separate and helps you pass first time so you only pay that fee once.