FRM USA or Financial risk management course is offered by the reputed Global Association of Risk Professionals (GARP, USA) body. The curriculum of this FRM Training is designed strategically to help individuals equip themselves to manage business risk and understand the concepts related to the same.
FRM Part II enables students to learn the application of tools and techniques which are covered in part I. Part II of FRM Online Classes for Part II takes students deeper into the sub-areas of risk management and further covers the following subjects
1. Market Risk Management (25% Weightage in FRM)
Market risk management tests student’s knowledge of market risk measurement and management techniques which are further broken into-
- Fixed-income interest rate sensitivities –Expect to learn about multiple investment concepts and options
- Volatility exposures-Learn about different faces of volatility exposures in portfolio
- Value-at-Risk (VaR) and back testing VaR – Learn how to deal with worst case losses
- Expected shortfall (ES) –Evaluate the credit risk and market risk of portfolios deeply
- Correlations and copulas – Learn how to minimize tail risk and portfolio-optimization applications
- Parametric and non-parametric estimation methods –Learn what to do with data and outliers to attain perfect calculations
- Extreme value theory (EVT) – Analyze probability in data sets
- Exotic options and mortgage-backed securities –Learn how to scrutinize packages of mortgage and security products
2. Credit Risk management (25% Weightage in FRM)
Credit risk management helps students develop and build conceptual understanding of structured finance and credit products. Credit products such as collateral debt obligations and credit derivatives are highlighted in the process. Counter party risk, default risk and methodologies used to measure risks are few other aspects where knowledge is shared such as Credit VaR.
3. Operational and Integrated Risk Management (25% Weightage in FRM)
Operational Risk management and integrated risk management portions of the FRM coaching address both the aspects in the name majorly i.e. operational risk management and integrated risk management.
This subject includes –
- It covers all the tools and techniques required to measure, manage, and mitigate operational risk. This enables professionals in minimizing operational bottlenecks in organizations
- Economic capital allocation – Expect to know more about optimal capital distribution
- Enterprise risk management (ERM) – Determine the health and life of business
- Knowledge of critical issues in relation with liquidity risk management, model risk, loss data modelling and IT infrastructure, stress testing, and risk appetite. It helps deal with cash flow and effective prioritization.
- Key regulations and major international regulatory frameworks like Basel that is relevant to risk managers today. Expect to stay updated with current market changes and contemporary theories
4. Risk Management and Investment Risk Management (15% Weightage in FRM)
This portion of FRM coaching in Bangalore fosters rich information of applied risk management techniques into investment management process. Various deep topics such as portfolio construction, risk budgeting, portfolio, component VaR, issues related to hedge funds and private equity investments performance analysis are taken care of.
5. Current Issues in Financial Markets (10% Weightage in FRM)
Current issues in financial markets leads to candidates familiarize themselves with readings from this subject. It will help you approach each paper critically and you may expect to get equipped with risk management skills of a professional. It includes areas like -
- Sovereign Risk and Financial Crisis –Learn about critical linkages of sectors
- Flash Crash – Learn how to deal with volatile price decline ,circuit breakers and much more
- Financial Innovation and Its Issues –Learn about new financial technologies, institutions, and market