Condensed Note Of Frm Part 1: Foundations Of Risk Management

A quick understanding and review of all important concepts of Foundations of Risk Management (FRM) for FRM part 1 exam.

What you'll learn

Understand what are included in the FRM section of FRM Part 1

Have a condensed summary of key concepts

Act as a chance for candidates to find out any knowledge missing

Reinforce the concepts by using examples

Requirements

No requirement

Description

In this course, we have condensed the content from the Foundations of Risk Management (FRM) book of FRM Part 1 exam. It is our target to let those candidates who have not started studying can pick up all necessary concepts needed for the exam within a short time frame (and a reasonable price), with the subsequent aid of exam bank. Candidates who have a brief understanding are also welcomed to check if there is anything missing from your previous study.Note that we currently do not have intention to provide videos for explaining the concepts since we believe practices are more efficient in reinforcing your knowledge. Having said that, if there are large demands on videos for certain topics, we would like to create. The course includes the following topics for FRM section of FRM Part 1 exam (2022):1. The Building Blocks of Risk Management2. How Do Firms Manage Financial Risk?3. The Governance of Risk Management4. Credit Risk Transfer Mechanisms5. Modern Portfolio Theory and Capital Asset Pricing Model6. The Arbitrage Pricing Theory and Multifactor Models of Risk and Return7. Principles for Effective Data Aggregation and Risk Reporting8. Enterprise Risk Management and Future Trends9. Learning from Financial Disasters10. Anatomy of the Great Financial Crisis of 2007-200911. GARP Code of Conduct

Overview

Section 1: Introduction

Lecture 1 Introduction

Section 2: [FRM-1] The Building Blocks of Risk Management

Lecture 2 Risk, Risk Management & Risk Taking

Lecture 3 Tools to Measure and Manage Risk

Lecture 4 Expected Loss & Unexpected Loss

Lecture 5 Relationship between Risk and Reward

Lecture 6 Key Classes of Risks

Lecture 7 Challenges in Risk Aggregation

Section 3: [FRM-2] How Do Firms Manage Financial Risk?

Lecture 8 Strategies to Manage Risks

Lecture 9 Risk Appetite

Lecture 10 Hedging Risks

Lecture 11 Methods to Hedge Risks

Lecture 12 Risk Management Tools and Instruments

Section 4: [FRM-3] The Governance of Risk Management

Lecture 13 Corporate Risk Governance after GFC

Lecture 14 Best Practices for Governance

Lecture 15 Risk Management Role

Lecture 16 Risk Appetite & Business Strategy

Lecture 17 Interdependence of Functional Units

Lecture 18 Audit Committee

Section 5: [FRM-4] Credit Risk Transfer Mechanisms

Lecture 19 Credit Derivatives

Lecture 20 Traditional Approaches to Mitigate Credit Risk

Lecture 21 Role of Credit Derivatives in GFC

Lecture 22 Securitization, SPV, and OTD Model

Section 6: [FRM-5] Modern Portfolio Theory and Capital Asset Pricing Model

Lecture 23 MPT, Efficient Frontier, and CML

Lecture 24 CAPM, Beta, and SML

Lecture 25 Estimate and Interpret Beta

Lecture 26 Sharpe/Treynor/Information/Sortino Ratio & Jensen's Alpha

Section 7: [FRM-6] The Arbitrage Pricing Theory and Multifactor Models of Risk and Return

Lecture 27 Arbitrage Pricing Theory (APT)

Lecture 28 Factor Betas and Multifactor Model

Lecture 29 Hedging using Multifactor Model

Section 8: [FRM-7] Principles for Effective Data Aggregation and Risk Reporting

Lecture 30 Benefits of Effective RDARR

Lecture 31 Challenges to Having Strong RDARR

Lecture 32 Key Principles of Risk Data Aggregation

Lecture 33 Characteristics of Data/IT Architecture & Risk Reporting Practices

Section 9: [FRM-8] Enterprise Risk Management and Future Trends

Lecture 34 ERM vs Silo-based Risk Management

Lecture 35 Best Practices of ERM

Lecture 36 Risk Culture, its Measurements and Challenges

Lecture 37 Role of Scenario Analysis in ERM

Lecture 38 Use of Scenario Analysis in Stress Testing and Capital Planning

Section 10: [FRM-9] Learning From Financial Disasters

Lecture 39 Interest Rate Risk (S&L Crisis)

Lecture 40 Funding Liquidity Risk (Lehman, Continental, Northern)

Lecture 41 Implementing Hedging Strategy (MGRM)

Lecture 42 Model Risk (Niederhoffer, LTCM, London Whale)

Lecture 43 Rogue Trading & Misleading Reporting (Barings)

Lecture 44 Financial Engineering & Complex Derivatives (BT, Orange County, Sachsen)

Lecture 45 Reputational Risk (Volkswagen)

Lecture 46 Corporate Governance (Enron)

Lecture 47 Cyber Risk (SWIFT)

Section 11: [FRM-10] Anatomy of the Great Financial Crisis of 2007-2009

Lecture 48 Overview of GFC during 2007-2009

Lecture 49 Roles of Subprime Mortgage & CDO

Lecture 50 Roles of Financial Institutions

Lecture 51 Short-term Wholesale Funding Markets

Lecture 52 Responses of Central Banks

Section 12: [FRM-11] GARP Code of Conduct

Lecture 53 Principles & Professional Standards

Lecture 54 Rules of Conduct

Lecture 55 Consequences of Violation

Section 13: [Optional] Learning Objectives of FRM Part 1

Lecture 56 [Optional] Foundations of Risk Management (20%) (Slide)

Lecture 57 [Optional] Quantitative Analysis (20%) (Slide)

Lecture 58 [Optional] Financial Markets and Products (30%) (slide)

Lecture 59 [Optional] Valuations and Risk Models (30%) (Slide)

Section 14: Bonus Section

Lecture 60 Bonus Lecture

Candidates who want to understand or review the section Foundations of Risk Management (FRM) of FRM Part 1