FRM

Financial Risk Manager (FRM) Program Overview The Financial Risk Manager (FRM) certification is a globally recognized credential for risk management professionals, awarded by the Global Association of Risk Professionals (GARP). It is designed to assess the knowledge and skills necessary to anticipate, respond to, and mitigate financial risks. FRM Part I: Foundations of Risk Management Objective: To provide a strong foundational understanding of risk management tools and techniques. Focus Areas: 1. Foundations of Risk Management: Introduction to risk management concepts, including risk types, risk management frameworks, and the role of risk managers. 2. Quantitative Analysis: Statistical techniques and methods used in risk management, including probability, regression, and hypothesis testing. 3. Financial Markets and Products: Overview of financial instruments such as derivatives, bonds, and equities, and how they are used in risk management. 4. Valuation and Risk Models: Basic valuation techniques for financial instruments and introduction to risk models like Value at Risk (VaR). FRM Part II: Advanced Risk Management Objective: To build on the foundational knowledge and focus on the application and management of financial risks. Focus Areas: 1. Market Risk Measurement and Management: Techniques to measure and manage market risk, including VaR, stress testing, and scenario analysis. 2. Credit Risk Measurement and Management: Understanding credit risk, credit ratings, and credit risk models. 3. Operational Risk and Resiliency: Identifying and managing operational risk, and ensuring business cont 4. Liquidity and Treasury Risk Measurement and Management: Techniques to manage liquidity risk and the role of treasury functions. 5. Risk Management and Investment Management: Application of risk management in portfolio construction and management. 6. Current Issues in Financial Markets: Understanding the latest trends, regulations, and challenges in financial markets.