Vskills certification for Financial Risk Management Professional assesses the candidate as per the company’s need for financial risk management. The certification tests the candidates on various areas in classifying risk, risk measurement, risk management, bull spreads, delta neutral strategies, and Basel II.

1. Certified Financial Risk
Management Professional
VS-1132

2. Certified Financial Risk Management Professional
www.vskills.in
CCCCertifiedertifiedertifiedertified Financial Risk MFinancial Risk MFinancial Risk MFinancial Risk Managementanagementanagementanagement
ProfessionalProfessionalProfessionalProfessional
Certification CodeCertification CodeCertification CodeCertification Code VS-1132
Vskills certification for Financial Risk Management Professional assesses the candidate as
per the company’s need for financial risk management. The certification tests the
candidates on various areas in classifying risk, risk measurement, risk management, bull
spreads, delta neutral strategies, and Basel II.
Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification?
This Course is intended for professionals and graduates wanting to excel in their chosen
areas. It is also well suited for those who are already working and would like to take
certification for further career progression.
Earning Vskills Financial Risk Management Professional Certification can help candidate
differentiate in today's competitive job market, broaden their employment opportunities by
displaying their advanced skills, and result in higher earning potential.
Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?
Job seekers looking to find employment in finance or risk departments of various
companies, students generally wanting to improve their skill set and make their CV
stronger and existing employees looking for a better role can prove their employers the
value of their skills through this certification.
Test DetailsTest DetailsTest DetailsTest Details
• Duration:Duration:Duration:Duration: 60 minutes
• No. of questions:No. of questions:No. of questions:No. of questions: 50
• Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%)
There is no negative marking in this module.
Fee StructureFee StructureFee StructureFee Structure
Rs. 4,500/- (Includes all taxes)
Companies that hire VskillsCompanies that hire VskillsCompanies that hire VskillsCompanies that hire Vskills Financial Risk Management ProFinancial Risk Management ProFinancial Risk Management ProFinancial Risk Management Professionalfessionalfessionalfessional
Financial Risk Management Professionals are in great demand. Companies specializing in
financial consulting or risk consulting are constantly hiring skilled Financial Risk
Management Professionals. Various public and private companies also need Financial Risk
Management Professionals for their finance or risk departments.

3. Certified Financial Risk Management Professional
www.vskills.in
Table of ContentsTable of ContentsTable of ContentsTable of Contents
1.1.1.1. Risk BasicsRisk BasicsRisk BasicsRisk Basics
1.1 Nature of Risk
1.2 Sources of Risk
1.3 Need for Risk Management
1.4 Benefits of Risk Management
1.5 Risk Policy
1.6 Risk Management Approaches
2.2.2.2. Risk ClassificatioRisk ClassificatioRisk ClassificatioRisk Classificationnnn
2.1 Credit Counterparty Risk
2.2 Market Risk
2.3 Operational
2.4 Other Risks
3.3.3.3. Measuring RiskMeasuring RiskMeasuring RiskMeasuring Risk
3.1 Measurement of Credit
3.2 Measurement of Market Risk
3.3 Measurement of Interest Rate Risk for
3.4 Asset Liability Management (ALM)
3.5 Measurement of Operational Risk
4.4.4.4. Risk ManagementRisk ManagementRisk ManagementRisk Management
4.1 Managing Credit Risk
4.2 Managing Market Risk
4.3 Managing Operational Risk
4.4 Insurance
5.5.5.5. Tools for RiskTools for RiskTools for RiskTools for Risk ManagementManagementManagementManagement
5.1 Bull Spreads
5.2 Neutral and Volatile Strategies
5.3 Delta Neutral Strategies
5.4 Credit Derivatives
5.5 Credit Ratings
6.6.6.6. Other Issues in Risk ManagementOther Issues in Risk ManagementOther Issues in Risk ManagementOther Issues in Risk Management
6.1 Regulatory Framework
6.2 The Basel Committee
6.3 Best Practices Report
6.4 Legal Issues
6.5 Accounting Issues
6.6 Tax Issues
6.7 Management Information System (MIS)

4. Certified Financial Risk Management Professional
www.vskills.in
6.8 Information Technology (IT) and Systems
6.9 Integrated Risk Management
7.7.7.7. Basel IIBasel IIBasel IIBasel II
7.1 Three Pillars of Basel II
7.2 Time Schedule and Scope of Application
7.3 The First Pillar-Minimum Capital Requirements
7.4 The Standardized Approach
7.5 The Internal Ratings Based (IRB) Approach
7.6 Market Risk
7.7 Operational Risk
7.8 The Second Pillar-Supervisory Review Process
7.9 The Third Pillar-Market Discipline
8.8.8.8. Case StudiesCase StudiesCase StudiesCase Studies
8.1 Risk Management Gone Wrong
8.2 Barings
8.3 Orange County
8.4 Herstatt Bank
8.5 Long-Team Capital Management (LTCM)
8.6 Enron

5. Certified Financial Risk Management Professional
www.vskills.in
Sample QuestionsSample QuestionsSample QuestionsSample Questions
1.1.1.1. Traditionally, corporate risk management considered all of the following risksTraditionally, corporate risk management considered all of the following risksTraditionally, corporate risk management considered all of the following risksTraditionally, corporate risk management considered all of the following risks
EXCEPTEXCEPTEXCEPTEXCEPT
A. Liability risks.
B. Financial risks.
C. Property risks.
D. Personnel risks.
2222.... Which of the following is most likely to occur in a “hard” insurance market?Which of the following is most likely to occur in a “hard” insurance market?Which of the following is most likely to occur in a “hard” insurance market?Which of the following is most likely to occur in a “hard” insurance market?
A. high insurance premiums and loose underwriting standards
B. low insurance premiums and loose underwriting standards
C. low insurance premiums and tight underwriting standards
D. high insurance premiums and tight underwriting standards
3333.... A computerized database that permits the risk manager to store and analyze riskA computerized database that permits the risk manager to store and analyze riskA computerized database that permits the risk manager to store and analyze riskA computerized database that permits the risk manager to store and analyze risk
management data is called amanagement data is called amanagement data is called amanagement data is called a....
A. Risk map.
B. Risk management intranet.
C. Risk management software program.
D. Risk management information system.
4444.... A comprehensive risk management program that addresses an organization’sA comprehensive risk management program that addresses an organization’sA comprehensive risk management program that addresses an organization’sA comprehensive risk management program that addresses an organization’s
pure risks, speculative risks, strategic risks, and operational risks is called a(n)pure risks, speculative risks, strategic risks, and operational risks is called a(n)pure risks, speculative risks, strategic risks, and operational risks is called a(n)pure risks, speculative risks, strategic risks, and operational risks is called a(n)
A. Financial risk management program.
B. Enterprise risk management program.
C. Integrated risk management program.
D. Double-trigger option program.
5555.... The risk management departments of some companies have developedThe risk management departments of some companies have developedThe risk management departments of some companies have developedThe risk management departments of some companies have developed
interactive networks incorporating search cinteractive networks incorporating search cinteractive networks incorporating search cinteractive networks incorporating search capabilities. These networks are designedapabilities. These networks are designedapabilities. These networks are designedapabilities. These networks are designed
for limited, internal use. Such networks are calledfor limited, internal use. Such networks are calledfor limited, internal use. Such networks are calledfor limited, internal use. Such networks are called
A. Enterprise risk management plans.
B. Risk management intranets.
C. Risk maps.
D. Risk management information systems.
Answers: 1 (B), 2 (B), 3 (C), 4 (A), 5 (A)