MAHA Global and IPR: Do Actions Speak Louder Than Words?
Syllabus-Financial Risk Management.docx
1. American Academy of Fiinance Management-CFR Page 1
FINANCE RISK MANAGEMENT
CERTIFIED IN FINANCE (CFR)
AMERICAN ACADEMY OF FINANCE MANAGEMENT
CERTIFICATION PROGRAM
Table of Contents
Financial Risk Management..................................................................2
Risk Management Funtions...................................................................3
General objectives of CFR Certification..............................................4
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Syllabus of Finance Risk Management-Certified in Finance Risk
(CFR).....................................................................................................5
American Academy of Finance Management.......................................5
About The AAFM ® Board of Standards.............................................8
The AAFM ® Board of Standards........................................................9
AAFM ® Certifications .......................................................................10
AAFM ® American Academy of Financial Management ®.............10
AAFM ® Accredited Education .........................................................18
Financial Risk Management
Risk Management assists any entities’ operating units and staff with managing and balancing
risk created by programs and activities. Financial Risk Management is designed to protect
against or mitigate losses to the people, facilities, and other assets of the entity.
Risk Management strives to provide financial protection and support services to all
departments in the organization. The success of the department in fulfilling its responsibilities
requires close coordination with, and cooperation from, the total organization for identification
of potential risks and prompt notification of claims for losses sustained.
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The deregulation of financial markets, the lifting of exchange controls and the motivation to
capture international markets has meant that organisations must operate within a volatile global
environment. These organisations are vulnerable to financial risk that may result from interest
rate, exchange rate or commodity price movements. The purpose of this segment is to equip
you with the necessary skills to assess these financial risks and manage them strategically with
the use of financial instruments.
The Financial Risk Management segment extends the governance framework covered in the
Ethics and Governance segment, further discusses the process of investment evaluation that
was covered in the Strategic Management Accounting segment, and examines some of the
practical elements and complexities of hedge accounting in relation to the International
Financial Reporting Standards that were covered in the Financial Reporting segment.
Risk Management Funtions
Identification and analysis of risk and assessment of loss potential
This requires obtaining information from various units within the university and
determining the possible losses and what protections need to be put in place
Eliminating or minimizing risks
Risk Management works with departments to implement loss prevention and safety
programs, other mechanisms for risk avoidance or ways in which risk can be
transferred to other parties.
Implementing loss funding and risk financing mechanisms
Once the potential losses are ascertained, Risk Management evaluates the costs which
would be incurred in order to provide restoration for damages sustained and evaluates
funding options to ensure the availability of funds.
Claims control and litigation management
Once damages have been sustained, Risk Management is responsible for providing
restoration in a cost-effective manner and managing litigation that may arise. Risk
Management also controls costs by obtaining restitution from legally responsible
parties.
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Additional Information and Assistance
Please see the subject matter pages at the left or contact us for more information.
Approaching financial risks, such as market, credit, and operational uncertainties, in a
professional manner is becoming increasingly important. Market swings, interest-rate
volatility, loan defaults, falsified data in company reports, and fraud have not only led to serious
financial losses but also tarnished reputations in the past few years. It is becoming increasingly
important to monitor and manage all types of qualitative as well as financial risks. A holistic
approach to risk management enables a company to have a high level of awareness of, as well
as uniformly assess, professionally manage and suitably control all of its risks.
Discussions on risk management currently tend to focus on the negative effects (“left tails”) of
risks. The same attention ought to be paid to the profitable zone as well. Modern management
is based on an integrated approach, which takes into account and permanently monitors both
the success and risk factors of a business strategy. A performance-oriented assessment of the
effective risk situation consequently enables value-based business management. An integrated
performance management system allows targeted and meaningful information to be collected.
These can be the basis for the development of an optimal strategy and for taking the right
entrepreneurial decisions.
General objectives of CFR Certification
On completion of this segment, you should be able to:
identify the types of financial risk faced by an organisation
apply a practical approach to assessing, monitoring and managing an organisation's
financial risk
understand the funding, liquidity, interest rate, foreign exchange, commodity price and
operational risk faced by organisations
advise an organisation on the procurement and management of funding and the
allocation to competing long-term investments
advise an organisation on the types of financial instruments that could be used to best
manage an organisation’s financial risk
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demonstrate the practical elements of accounting for derivatives, for both embedded
derivatives and derivatives used for hedging purposes
explain a practical risk management approach and control framework to manage both
financial and operational risks
Syllabus of Finance Risk Management-Certified in Finance Risk (CFR)
American Academy of Finance Management
1. What is Financial Risk Management?
presents an introduction to the financial risk facing organisations and the risk
management process used to address financial risk. The methodology and concepts
introduced in this module will be expanded upon throughout the segment.
Understand the financial risk management process
The impact of history on financial markets
2. Identifying Major Financial Risks
strategic and operational foreign exchange and commodity risk management is also a core
skill of a corporate risk manager. The key drivers that affect currencies and commodity
prices are examined and the organisation’s exposure determined. Strategic management of
these exposures is achieved through the use of financial instruments and best risk
management practice.
How to identify key factors that affect interest rates, exchange rates, and commodity
prices
Evaluate the various financial risks that affect most organizations
How key market risks arise, such as interest rate risk, foreign exchange risk, and
commodity price risk
The impact of related risks such as credit risk, operational risk, and systemic risk
2. Interest Rate Risk
Strategic and operational interest rate risk management is a core skill of a corporate risk
manager. The global financial crisis of 2007–09 resulted in many corporate failures,
and management can no longer claim ignorance of the dangers inherent in exposure to
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interest rate volatility or of the techniques for its management. This module explores
the fundamental processes of interest rate risk management and its interrelationship
with liquidity management and solvency.
Identify opportunities to reduce interest rate exposure
Evaluate ways to manage interest rate risk with forward rate agreements, futures, and
swaps
Assess the use of interest rate options
3. Foreign Exchange Risk
Strategic and operational interest rate risk management is a core skill of a corporate risk
manager. The global financial crisis of 2007–09 resulted in many corporate failures,
and management can no longer claim ignorance of the dangers inherent in exposure to
interest rate volatility or of the techniques for its management. This module explores
the fundamental processes of interest rate risk management and its interrelationship
with liquidity management and solvency
Assess ways to reduce foreign exchange exposure through rearranging business
processes
Compare foreign exchange hedging strategies
Evaluate the risks associated with specific derivatives products and strategies
4. Foreign Exchane Risk
This module describes all aspects and issues as related to foreign exchange risks with
all its implications.
Assess ways to reduce foreign exchange exposure through rearranging business
processes
Compare foreign exchange hedging strategies
Evaluate the risks associated with specific derivatives products and strategies
5. Liquidity Risk
This module examines the procedures involved in liquidity and working capital
management. The various debt and equity markets are explained with reference to
organizational funding needs and suitability.
Identify the major sources of liquidity risk
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Identify common methods for managing liquidity risk
6. Credit Risk
This module examines the procedures involved in Credit Risk analysis and the related
credit governance. The various types of credit analysis and credit risk management
methods are exposed in this module.
Identify the major sources of liquidity risk
Identify the major sources of credit and counterparty risk
Identify common methods for managing credit risk
Understand the basic types of credit derivatives
7. Commodity Risk
Strategic and operational foreign exchange and commodity risk management is also a core
skill of a corporate risk manager. The key drivers that affect currencies and commodity
prices are examined and the organization’s exposure determined. Strategic management
of these exposures is achieved through the use of financial instruments and best risk
management practice.
Aspects of commodity-related risks
Evaluate basic forward and futures strategies for managing commodity risk
Identify additional strategies for managing commodity price risk
8. Risk Management Framework: Policy and Hedging
This module discusses the implementation of a risk management framework and associated
controls to manage financial risks and the associated operational risks to which an
organization may be exposed. The key risk management principles are explored, including
the roles and responsibilities of senior executives.
Comment on the importance of financial risk management policy
Develop an organizational profile to support risk management policy
Evaluate opportunities to develop or refine a risk management policy
9. Measuring Risk
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This module describes on strategies and techniques used to measure effectively all the
inherent risks, and assessing the most applicable methodologies; while in paralell
assuring strategy to estimate the risks.
Differentiate between measures of exposure and measures of risk
Consider the strengths and weaknesses of risk measurement methodologies
Identify alternative strategies for estimating risks
10.Global Initiatives in Financial Risk Management
This module describes challenges pertinent in financial risk management, assist
participant in indientifying innitiatives to reduce risks in particular areas; and moreover
describes on the strategy to evaluate changes in capital adequacy that relate to systemic
risks.
Understand the challenges that exist in financial risk management
Identify initiatives for reducing risk in key areas such as settlements, trading, and
payments
Appreciate the significance of accounting and regulatory initiatives
Evaluate how changes in capital adequacy can reduce systemic risk
About The AAFM ® Board of Standards
World Recognized Standards and Certification ™
The AAFM ® American Academy of Financial Management ® is world recognized -
independent Board of Standards and Accreditation Council for professionals with members in
150+ countries offering exclusive certifications to candidates who meet the highest standards
and assessment. AAFM is a global self regulatory organization and in alliance with the top 800
accredited business school programs globally. AAFM is a member of the ACBSP, AACSB,
ICE, ANSI, NOCA, AABFS and is referenced by The United Nations, FINRA, US Department
of Labor, Investopedia Forbes Dictionary. AAFM Certifications are recognized by the Arab
Academy, India Academy, Latin Consortium, and the African Economist Association. The
AAFM is licensed to offer the CWM Certification, the MFP Master Financial Planner
Program and the AFA Accredited Financial Analyst Certification.
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guides, Finanical Regulatory Websites, the US Government Occupational Handbook, and
with the Bureau of Labor and Statistics. Further, the AAFM ® Board of Standards is listed
in the the United Nations Civil Society Registry along with other top financial and accounting
organizations.
AFM ® American Academy of Financial Management ®
AAFM ® Certifications
Certifications that successful graduates of Qualified Accredited Certification Courses and
Programs can apply for. If you want to enroll for our approved online Masters & LLM Courses
from an Accredited Law School, please go to: http://llmprogram.tjsl.edu
MFP ® Master Financial Professioanl & MFP Master Financial Planner- Charter Designation
and Board Certification ® AAFM ® Charter.
AAFM ® American Academy of Financial Management ®
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The AAFM ® Board USA consults again this year with US Government to provide research
& insights on financial innovation, reform, & employment analysis.
• US Dept of Labor Occupational Handbook, Registry , Websites, and brochures
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of Higher Education International Quality Group (CIQG)
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and Benefits of ACBSP Membership.
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• India Government Skills Council - Counts for Investment Adivsor Recognition
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• AACSB International Member - AAFM Recognized the AACSB in 2003
• la Société Internationale pour l'Enseignement Commercial
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• Top Wealth Management Charter Designation - As seen in the On Wall Street News as Top
Wealth Management Professional Development Firm.
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of Standards is a: Certifying Organ. Member.
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CPM certification programs.
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Development Programs Approved Training Programs
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Financial Analyst ™
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the General Legal Council for Continuing Education - Jamaica is a parliamentary democracy
and constitutional monarchy, with Queen Elizabeth II serving as the Jamaican monarch in
the same fashion that Australia is a Constitutional Monarchy under the Queen.
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• ةيميداكالا ةيبرعلا مولعلل ةيلاملا
• Profesionales de América Latina Grupo Bancario
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• आईआईएफएम ववववववव ववववववव वव वववववव वववववव
• Internasionale Instituut vir Belasting & Finansies IITF
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helps show that an individual is engaged in a higher code of conduct." Again, Zweig and Pilon
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other business school course.
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•New Accountant’s Guide to Certifications - By James G Swearingen, Ph.D., CPA, Professor
of Accounting at Weber State University, Ronald M. Mano, Ph.D., CPA, CFE, Professor of
Accounting and former Department Chair at Weber State University and Sandra Swearingen,
CPA, Assistant Professor at Weber State University www.newaccountantusa.com/Guide-to-
Certifications.pdf
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recognized the Global AAFM and AAPM Certifications.
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• International Federation of Financial Standards Association (“IFFSA”) China/Asia Financial
Planning Association
• Harvard Business Review Advisory Council
AAFM ® Accredited Education
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Read Press and Benefits of ACBSP Membership.
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2. Government Recognized Education, Exams, Programs
3. Exams from Accredited Degree Programs or Institutions
4. Courses and Exams from a Business School with Double Accreditation
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in Law Program which is based in e-Learning. The AAFM ® Board of Standards and our
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components for certification.
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AAFM Delivers Free Educational Tools to the United Nations and UNITAR to help
the worlds' underserved regions.