Course description
A Financial Risk Manager is responsible for determining the factors that might compromise an organization’s assets, earning potential, or overall performance. FRMs may find employment in various fields, including banking, trading, or marketing. Many have developed expertise in areas such as credit or market risk. FRMs determine risk via the analysis of financial markets and the environment on a global scale to predict changes or trends. The FRM is also responsible for devising solutions that may be used to mitigate the negative consequences of possible hazards.
What differentiates a financial risk manager from a chartered financial analyst?
Although the roles of a Chartered Financial Analyst (CFA) and Financial Risk Manager (FRM) may overlap, they each have their areas of expertise. CFAs develop financial analytics while analyzing security trends and financial markets, while FRMs detect, price, and mitigate risk. An FRM has three main areas of expertise: risk-based recommendations, pricing, and risk reduction. The CFA designation covers a broader range of financial issues, whereas the FRM designation focuses on risk management themes such as market risk, volatility, liquidity, and inflation.
What are the benefits of an FRM certification?
The Financial Risk Management certification is a worldwide recognized standard for professionals that manage risk. This certification provides a solid foundation for analyzing, regulating, or assessing liquidity risk, market risk, credit risk, and non-market-related financial hazards. FRM holders work in investment banks, corporations, asset management firms, and government agencies to perform risk management duties. Consequently, top organizations in multiple industries value certified FRMs who have completed the rigorous FRM curriculum.
The Rcademy Certified Financial Risk Manager Course provides the approaches and procedures learners will need to grasp risk management ideas recognized by international professional standards. The course is designed to teach learners the fundamental principles and practices of risk analysis to manage financial risk effectively and efficiently. The course also covers financial risk assessment concepts and methods, value and risk models, and basic risk management concepts. At the close of the course, participants would have learned the fundamentals of analyzing and pricing risks.
Upcoming start dates
Suitability - Who should attend?
At the end of The Certified Financial Risk Manager Course by Rcademy, participants would have learned the following:
- Recognize the financial levers that influence financial performance
- Learn how and why finance is concerned with cash flow/profits and why it is critical to business and budgeting
- Develop ways to create and measure value to analyze and pitch potential projects
- Investigate how financial markets function and how they affect the company
- Develop an economic intuition that gives the assurance to make sound financial decisions
- Create measures to mitigate the impact of probable economic hazards
- Foresee changes or trends, and analyze financial markets and the global environment to determine risk
- Creating and implementing comprehensive risk management policies, procedures, and processes
- Develop contingency plans and financial safeguards based on risk assessments
- Gained the capacity to handle money and investments to have a genuine impact through effective financial risk management
Training Course Content
Module 1: Concept and Tools in Financial Risk Assessment
- Introduction
- Quantitative analysis
- Financial markets and products
- Fundamentals of risk management
- Core risk management concepts
- Valuation vs risk models
Module 2: Fundamentals of Risk
- Minimum variance portfolio
- Correlation between portfolios
- Efficient frontiers
- Capital market line
- Standard CAPM and Non-Standard CAPM
- Risk & risk classification
- Enterprise risk management
- Valuation of risk and adjustment
- Risk management process
- Estimating value and appropriate hedging
- Rewarding risk takers
- Basic steps in building a sound risk management system
Module 3: Types of Financial Risk
- Credit risk
- Market risk
- Operational risk
- Inflation risk
- Liquidity risk
- Liquidity and leverage risk
- Foreign investment risk
- Cash flow risk
Module 4: Valuations and Risk Model
- Discount factors, arbitrage, and bond prices
- Spot rates, forward rates, and bond prices
- Yield to maturity
- One-factor measures of price sensitivity
- Measures of financial risk
- VAR usage and stress testing
- Rating agencies
- External and internal ratings
- Sovereign risk and country risk models
- Expected loss and loan portfolios
- Unexpected loss
Module 5: Investment Management Process Techniques
- Investment management
- Integrated risk management
- Market risk management and measurement
- Operational risk management
- Risk management
- Credit risk management and measurement
- Current issues in financial markets
- Investment management
Module 6: Risk Analysis for Capital Budgeting
- Introduction to risk analysis
- Sources and perspectives of risk
- Techniques of risk analysis
- Break-even analysis
- Simulation analysis and Hiller’s model
- Decision tree analysis
- Corporate risk analysis
Module 7: Financial Markets and Products
- Introduction (Futures, Options, and Other Derivatives)
- Interest rates and interest rate futures
- Hedging strategies using futures
- Swaps
- Determination of forward and future prices
- Commodity forwards and futures
- Value of forward contracts
- Properties of stock options
- Foreign exchange risks
- Basics of commodity spot and futures markets
- Instruments, strategies, and exchanges
- Trading strategies involving options
Module 8: Quantitative Analysis
- Review of probability
- Essentials of risk management
- Monte Carlo
- Correlation regression
- Estimating volatility and correlation
- Multiple regression
- Hypothesis testing
- Continuous probability distribution
- Quantifying volatility in VAR models
Module 9: Value at Risk 1
- Introduction to VAR
- Measuring VAR
- VAR measurement method
- EWMA
- GARCH
- VAR methods for estimating risk
Module 10: Value at Risk 2
- Operational risk and its approaches
- Advanced measurement approach
- Scenario analysis in scarce data
- Credit ratings
- Rating system
- Country risk ratings
- Sovereign ratings
- Expected loss
- Issues in parametrizing credit risk models
Module 11: Risk Management under a Normal Distribution
- Basics of non-normal distribution
- Distribution of returns
- Value-at-Risk (VaR)
- Expected Shortfall (ES)
- Use of simulation to estimate VaR and ES
Module 12: Risk Management under Non-Normal Distribution
- Basics of Non-normal Distributions
- Student t Distribution
- Rescaled t Distribution Model
- VaR and ES for Multi-day Horizon
Module 13: Risk Management under Volatility Clustering
- Future / Historical Distribution
- Volatility Clustering
- GARCH1
- Estimation: rugarch Package
- GARCH (1,1)
- Using the ugarchboot Function
- Using the ugarchroll Function
Course delivery details
The Certified Financial Risk Manager Course is designed to fulfill the needs of participants while also improving their knowledge and skills in the field. This course will be presented using a variety of practical ways to ensure attendees’ active and continuous learning. Renowned experts and professionals will teach the course with years of work and experience. The course modules are also based on thorough research into the subject.
The Rcademy course on Certified Financial Risk Manager Course integrates practical and theoretical learning by providing attendees with cases, studies, lectures, slides on the concepts, and real-life scenarios. Participants will also engage in presentations, seminar workshops, quizzes, and regular feedback on lessons learned to confirm their optimum satisfaction.
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Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...