Certified Financial Risk Manager (CFRM)-2nd Batch

This module provides a comprehensive overview of financial risk management. Learners will explore the different types of financial risks organizations face, the risk management process, and how regulatory frameworks and institutions address financial risks. Ethical considerations and case studies bring real-world examples to light.

Market risk is the risk of losses in financial positions due to market fluctuations. This module explores how to measure, assess, and mitigate market risks using various tools like VaR, GARCH, and scenario analysis. Learners will also examine hedging techniques and stress testing for different market scenarios.

Credit risk arises from the potential that a borrower may default on a loan or financial obligation. This module delves into methods for assessing creditworthiness, managing loan portfolios, and using credit risk models such as the Merton model and KMV. Learners will also explore credit derivatives as risk mitigation tools.

Liquidity risk refers to the potential inability of an organization to meet its short-term financial obligations. This module covers metrics like Liquidity Coverage Ratio (LCR) and strategies for managing liquidity in both normal and crisis conditions. The role of central banks and case studies on liquidity crises are also explored.

Operational risk refers to the potential for losses due to failures in internal processes, people, systems, or external events. This module explores the identification, assessment, and mitigation of operational risks, including strategies for managing cyber risk, fraud, and business continuity planning. Regulatory requirements and case studies provide practical insights.

Enterprise Risk Management (ERM) is a holistic approach to managing all risks faced by an organization. This module introduces the components of ERM, such as governance, risk culture, and risk appetite, and discusses how ERM can be integrated into business strategy. Learners will explore various ERM frameworks like COSO ERM and ISO 31000.

Regulatory and compliance risks arise from the potential for financial losses due to non-compliance with regulations. This module explores major regulatory frameworks such as Basel III, Dodd-Frank, and MiFID II, and covers strategies for managing risks related to Anti-Money Laundering (AML), Know Your Customer (KYC), and data protection regulations.

This module focuses on the financial risks inherent in investment management, including market, credit, and liquidity risks. Learners will explore the risk-return tradeoff, diversification strategies, and the use of metrics like the Sharpe ratio, beta, and alpha to manage investment portfolios. The module also covers behavioral finance and stress testing.