FRM

Financial risk management is the practice of economic value in a firm by using financial instruments to manage exposure to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation risk, business risk, legal risk, reputational risk, sector risk etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them.

Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.

In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks.

Financial Risk Management Course is a qualification for risk management professionals. FRM designation is an international professional certification offered by the Global Association of Risk Professionals. Credit risk, liquidity risk, market risk, etc. are examined and controlled. A wide variety of functions related to risk management within investment banks, asset management firms, as well as in corporations and government agencies are executed.

In order to obtain the FRM designation, candidates are required to meet two key requirements: Successfully pass two separate FRM exams, and complete a minimum of two years of full-time work experience in the field of financial risk, or related areas.

Financial risk management is the practice of economic value in a firm by using financial instruments to manage exposure to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation risk, business risk, legal risk, reputational risk, sector risk

The FRM Exam covers the application of risk management tools and techniques to the investment management process. The questions are practical and related to real-world work experiences.

Candidates are expected to understand risk management concepts and approaches as they would apply to a risk manager’s day-to-day activities. The exam tests knowledge of the tools used to assess financial risks, such as quantitative analysis, fundamental risk management concepts, financial markets and products, and risk models.