Certificate in Financial Risk Management

Course details

Why should I take Financial Risk Management certification?
Financial risk management is the process of setting up the guidelines to define a policy on managing exposure to financial risk in order to optimize the amount of risk handled along with the financial interests. Financial risk managers do not make investment decisions, they create the guidelines that must be followed by the risk takers while analyzing investments for the company.

They have the responsibility of foreseeing, analyzing & controlling credit risks & market risks. His role also includes taking suitable measures to control Inflation risk, foreign exchange risk, Liquidity risk etc.

How will I benefit from Financial Risk Management Certification?
The Financial Risk Mangement Certification covers the best risk management practices and helps students & professionals in career development by broadening their skill set. Today’s market is experiencing a lot of change, especially when its dynamic nature comes into picture. In such circumstances, there is an urgent need of financial risk managers. Companies specializing in financial consulting or risk consulting constantly hire skilled Financial Risk Management employees.

Table of Contents

Risk Basics

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

Risk Classification

• Credit Counterparty Risk
• Market Risk
• Operational Risk
• 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
• Interest Rate Risk Management
• Insurance
• Bull and Bear Spreads
• Delta Neutral Strategies
• Credit Derivatives
• Credit Ratings

Other Issues in Risk Management

• Regulatory Framework
• The Basel Committee
• Best Practices
• Challenges to Risk Management
• Accounting Issues
• Tax Issues
• Management Information System (MIS)
• Integrated Risk Management

Basel II​​​​​​​

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

Case Studies

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

Updated on 01 February, 2019