Certified Financial Risk Management Professional

Risk Basics

• Nature of Risk
• Sources of Risk
• Need for Risk Management
• Benefits of Risk Management
• Risk Policy
• Risk Management Approaches

Risk Classification

• Credit Counterparty Risk
• Market Risk
• Operational
• Other Risks

Measuring Risk

• Measurement of Credit
• Measurement of Market Risk
• Measurement of Interest Rate Risk for
• Asset Liability Management (ALM)
• Measurement of Operational Risk

Risk Management

• Managing Credit Risk
• Managing Market Risk
• Managing Operational Risk
• Insurance

Tools for Risk Management

• Bull Spreads
• Neutral and Volatile Strategies
• Delta Neutral Strategies
• Credit Derivatives
• Credit Ratings

Other Issues in Risk Management

• Regulatory Framework
• The Basel Committee
• Best Practices Report
• Legal Issues
• Accounting Issues
• Tax Issues
• Management Information System (MIS)
• Information Technology (IT) and Systems
• Integrated Risk Management

Basel II

• Three Pillars of Basel II
• Time Schedule and Scope of Application
• The First Pillar-Minimum Capital Requirements
• The Standardized Approach
• The Internal Ratings Based (IRB) Approach
• Market Risk
• Operational Risk
• The Second Pillar-Supervisory Review Process
• The Third Pillar-Market Discipline

Case Studies

• Risk Management Gone Wrong
• Barings
• Orange County
• Herstatt Bank
• Long-Team Capital Management(LTCM)
• Enron