Financial Risk Manager- FRM Exam Prep (Part 2)

  • Formats:

    Live Online

  • Duration:

    36 hours/ 12 weeks

  • Registration Fee:

    $890  

Start Date

Live online

Part Time: February 02, 2021 – April 29, 2021

Register Today

Overview

Recognized in every major market, the FRM is the leading certification for risk managers. It is consistently in demand by nearly every major bank and firm in the world, and is awarded only to professionals who demonstrate the knowledge and ability to anticipate, respond, and adapt to critical risk issues.

There’s never been a more crucial time to stand out. As the financial industry becomes increasingly competitive, the professionals who succeed are the ones who can demonstrate their ability to add value to an organization. Earning your FRM proves that your knowledge and skills are up to the latest international standards, and connects you to an elite network of expert risk professionals employed by the world’s leading institutions.

As the field’s leading designation, the FRM is the key indication of candidates with proven ability and experience. Anyone can register to take the exam. FRM certification is awarded after a candidate has passed two rigorous multiple choice exams (FRM Exam Part I and Part II) and demonstrated two years of relevant work experience. Candidates must take the FRM Exam Part I before taking Part II. Certified FRMs are strongly encouraged to earn 40 hours of Continuing Professional Development (CPD) every two years to maintain the latest best practices in risk management.

In order to be a certified FRM you need to understand credit and market risks and successfully pass the FRM exams (Part 1 and Part 2). This Exam Prep course will help students to prepare for Part 2 of the FRM exam, covering Market Risk Measurement and Management, Credit Risk Measurement and Management, Operational Risk and Resiliency & Liquidity, Treasury Risk Measurement and Management, Risk Management and Investment Management, and current Issues in the financial market. The FRM Exam Part II is an 80-question multiple choice exam, emphasizing the application of the tools acquired in Part I. Part II is always offered in the afternoon and must be completed in four hours or less. Both parts of the FRM Exam are offered twice a year, in May and November.

Course Prerequisites

None.

Learning Objectives

Upon completion of this course the successful student will have reliably demonstrated the ability to:

  • Be prepared to complete the FRM Exam Part 2
  • Increase their knowledge of market risk and management
  • Assess operational risk and resiliency
  • Assess credit risk measurement and management
  • Explore liquidity and treasury risk measurement and management
  • Explore current issues in the financial market
  • Identify risk and investment management and related issues

Topics Covered Include

Market Risk Measurement and Management

  • VaR and other risk measures
  • Parametric and non-parametric methods of estimation
  • VaR mapping
  • Backtesting VaR
  • Expected shortfall and other coherent risk measures
  • Extreme Value Theory (EVT)
  • Modeling dependence: correlations and copulas
  • Term structure models of interest rates
  • Volatility: smiles and term structures
  • Fundamental Review of the Trading Book (FRTB)

Operational Risk and Resiliency

  • Principles for sound operational risk management
  • Risk appetite frameworks and enterprise risk management (ERM)
  • Risk culture and conduct
  • Analyzing and reporting operational loss data
  • Model risk and model validation
  • Risk-adjusted return on capital (RAROC)
  • Economic capital frameworks and capital planning
  • Stress testing banks
  • Third-party outsourcing risk
  • Risks related to money laundering and financing of terrorism
  • Regulation and the Basel Accords
  • Cyber risk and cyber resilience
    Operational resilience

Credit Risk Measurement and Management

  • Credit analysis
  • Default risk: Quantitative methodologies
  • Expected and unexpected loss
  • Credit VaR
  • Counterparty risk
  • Credit derivatives
  • Structured finance and securitization

Liquidity and Treasury Risk Measurement and Management

  • Liquidity risk principles and metrics
  • Liquidity portfolio management
  • Cash-flow modeling, liquidity stress testing, and reporting Contingency funding plan
  • Funding models
  • Funds transfer pricing
  • Cross-currency funding
  • Balance sheet management
  • Asset liquidity

Current Issues in Financial Market

  • Blockchain
  • Fintech revolution
  • Artificial intelligence (AI), machine learning and “big data”
  • Climate change and financial risk
  • Reference rates

Risk Management and Investment Management

  • Factor theory
  • Portfolio construction
  • Portfolio risk measures
  • Risk budgeting
  • Risk monitoring and performance measurement
  • Portfolio-based performance analysis
  • Hedge funds

Required Materials

  1. GARP approved calculator (BA II plus Professional Preferred)
  2. FRM Part 1 Textbook

Who will benefit from this course

Future credit risk and market risk professionals. This course will also help aspiring portfolio managers professionals to understand risks they are taking. By achieving your FRM certification, you will be joining a worldwide network of professionals in more than 190 countries and territories that can expand your professional opportunities throughout your career.

Dates

Live Online

Part Time:

February 02, 2021 – April 29, 2021

  • Students must devote at least 3 hours per week to attend live webinars.
  • Webinars will be held on Tuesdays from 4:00 to 7:00 pm PST .
  • Outside of live instructional periods, students will be expected to take part in various independent and/or group activities.

Fees

Registration Fee for this course is $890

Technical Requirements

Live Online Students

Ashton College uses web conferencing tools to help instructors and students connect and collaborate live online. Students should have access to a computer, laptop or smartphone to access the class sessions. To be able to participate in webinars, students need a webcam and headset, or a microphone and headphones, along with a high-speed internet connection.

This course does not require approval by the Private Training Institutions Branch of the Ministry of Advanced Education, Skills & Training. As such, it was not reviewed.

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