Financial Risk Manager (FRM®)© 2012 – SimpliLearn| All Rights Reserved                                                    ...
Agenda             Overview of FRM                                  Program structure              Exam structure         ...
OverviewFinancial Risk Manager (FRM®)                        RegistrationThe Global Association of Risk                   ...
FRM Structure         FRM                                 Foundations of Risk Management         (Twice a year.           ...
About FRM Part I Exam   Part I of the FRM Exam covers the fundamental tools and techniques   used in risk management and t...
FRM Part I Syllabus    Valuation and                                   Financial Markets    Risk Models                   ...
FRM Part I Sub-Topics                        An understanding                                    Basic probability        ...
More About FRM Part I Exam               Study Guide         SimpliLearn Study Notes                                      ...
Interpreting FRM Part I: AIM StatementAIMS:Jorion, Philippe. Value-at-Risk: The New Benchmark for Managing Financial Risk ...
About SimpliLearn FRM Part I Tutorial                                         Program Hours                               ...
SimpliLearn FRM Part I List of TutorialsFoundations of Risk Management            Quantitative Analysis                   ...
Why Should One Go for FRM?                     STAND OUT TO EMPLOYERS                          DEVELOP YOUR KNOWLEDGE AND ...
Opportunities for FRM-Certified Professionals            Professionals           Career Changer                   Students...
Insights from FRM 2011 Exam                 FRM candidates came from 129 different                 countries              ...
Who is Hiring?The top 20 companies employing the most Certified FRMs are:      FRM PART I                            Exam ...
THANK YOUFRM PART I               Exam Structure   16
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Frm Part-1 Exam Structure

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Financial Risk Manager (FRM) is one of the most coveted risk management credentials for finance professionals. FRM Part 1 is the first level of exam under the FRM certification program. Simplilearn brings to you online FRM Part 1 exam training that helps you prepare for the FRM exam at your own convenience. We are listed on GARP exam preparation providers as FRM Part 1 exam training provider. This presentation of FRM Part 1 helps you get a complete overview of concepts covered in the FRM exam. Each slide covers finance and risk management topics based on FRM Part 1 exam syllabus and is prepared by our experienced and certified trainers. Important topics such as Foundation of Risk Management, Quantitative Analysis, Financial Markets and Products, Valuation and Risk Models and so on. Get an understanding of each of these topics and improve your knowledge and confidence towards attaining the FRM Part 1 certification.

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Frm Part-1 Exam Structure

  1. 1. Financial Risk Manager (FRM®)© 2012 – SimpliLearn| All Rights Reserved Exam Structure – Part IFinancial Risk Manager (FRM®) is registered trade mark of Global Association of Risk Professionals 1
  2. 2. Agenda Overview of FRM Program structure Exam structure Part I and Part II Part I Curriculum SimpliLearn Program Structure Benefits of FRM certificationFRM PART I Exam Structure 2
  3. 3. OverviewFinancial Risk Manager (FRM®) RegistrationThe Global Association of Risk • Online RegistrationProfessionals (GARP) certification - the (Link : http://www.garp.org/frm/frm-program.aspx )Financial Risk Manager (FRM®) is theglobally recognized standard for those • No pre-requisite for registrationwho manage risk. FRM Certification 2 years of work experience (Risk- Part II Exam related full-time professional • 4 hours experience) Part I Exam • 80 MCQ • 4 Hours • 100 MCQ FRM PART I Exam Structure 3
  4. 4. FRM Structure FRM Foundations of Risk Management (Twice a year. FRM Part I Quantitative Analysis Third Saturday of May and Nov.) Financial Markets and Products Valuation and Risk Models Market Risk Management FRM Part II Credit Risk Management Operational and Integrated Risk Management Risk Management and Investment Risk ManagementFRM PART I Exam Structure 4
  5. 5. About FRM Part I Exam Part I of the FRM Exam covers the fundamental tools and techniques used in risk management and the theories that underlie their use. 20% 20% 30% 30% Foundations of Quantitative Financial Markets Valuation and Risk Management Analysis and Products Risk ModelsFRM PART I Exam Structure 5
  6. 6. FRM Part I Syllabus Valuation and Financial Markets Risk Models and Products Foundations of Quantitative Risk Analysis ManagementFRM PART I Exam Structure 6
  7. 7. FRM Part I Sub-Topics An understanding Basic probability Equities Basic bond of the trade-off and statistics Commodities valuation between risk and Monte Carlo Valuation using return Currencies methods binomial trees The construction Fixed income Valuation and Risk Models Management (20%) Products (30%) Foundations of Risk Financial Markets and (30%) Quantitative Analysis (20%) Volatility An understanding of efficient forecasting Equity options and of the Black- portfolios models other derivatives Scholes-Merton Fundamental Value-at-Risk A basic model asset pricing estimation understanding of Value-at-Risk models arbitrage arguments related The contingent Enterprise risk claims approach management to the valuation frameworks Expected and unexpected loss A review of major estimation financial disasters Stress testing Applications of the GARP Code ofFRM PART I Exam Structure 7
  8. 8. More About FRM Part I Exam Study Guide SimpliLearn Study Notes Duration 4 hours long Original Readings Prescribed by FRM Scoring No negative marking FRM Exam Preparation Handbook Calculator Only GARP-approved 2012 FRM Study guide calculators allowed Result Pass/Fail. Quartile results are provided. 2012 FRM AIM StatementFRM PART I Exam Structure 8
  9. 9. Interpreting FRM Part I: AIM StatementAIMS:Jorion, Philippe. Value-at-Risk: The New Benchmark for Managing Financial Risk : 3rd Edition (NewYork: McGraw-Hill, 2007).Chapter l ................................. The Need for Risk ManagementCandidates, after completing this reading, should be able to:• Define risk and describe some of the major sources of risk.• Differentiate between business and financial risks and give examples of each.• Relate significant market events of the past several decades to the growth of the risk management industry.• Describe the functions and purposes of financial institutions as they relate to financial risk management.• Define what a derivative contract is and how it differs from a security.• Define financial risk management.• Define Value-at-Risk (VaR) and describe how it is used in risk management.• Describe the advantages and disadvantages of VaR relative to other risk management tools such as stop-loss limits, notional limits, and exposure limits.• Compare and contrast valuation and risk management, using VaR as an example.• Define and describe the four major types of financial risks: market, liquidity, credit, and operational; and their forms.Links to download the desired study materials:http://www.garp.org/frm/study-center/study-materials.aspx FRM PART I Exam Structure 9
  10. 10. About SimpliLearn FRM Part I Tutorial Program Hours More than ……hours of E-learning videos 6 sets of question papers in original format Supporting Material E-Learning Complete course divided into more than 45 lessons Supporting examples to understand the concept More than 25 supporting Excel spreadsheetsContinuously Updated Updates The program material is continuously updated to keep the Get frequent updates on exam guidelines, difficulty, exam modules relevant, intuitive and asp per the latest curriculum and structure, pattern, relevant dates and news. GARP guidelines. FRM PART I Exam Structure 10
  11. 11. SimpliLearn FRM Part I List of TutorialsFoundations of Risk Management Quantitative Analysis Financial Markets and Products Valuation and Risk Models 24. introduction - Options, Futures, and1. The Need for Risk Management 13. Review of Probability Other Derivatives 37. Putting VaR to Work 38. Extending the VaR Approach to2. Creating Value with Risk Management 14. Review of Statistics 25. Mechanics of Futures Markets Operational Risks 15. Linear Regression with One3. Delineating Efficient Portfolios Regressor 26. Hedging Strategies Using Futures 39. Binomial Trees 16. Regression with a Single Regressor:4. The Standard Capital Asset Pricing Hypothesis Tests and ConfidenceModel Intervals 27. lnterest Rates 40. The Black-Scholes-Merton Model5. Nonstandard Forms of Capital Asset 17. Linear Regression with Multiple 28. Determination of Forward and FuturesPricing Models Regressors Prices 41. The Greek Letters6. The Arbitrage Pricing Model APT-A New 18. Hypothesis Tests and Confidence 42. Bond Prices, Discount Factors, andApproach to Explaining Asset Prices Intervals in Multiple Regression 29. Interest Rate Futures Arbitrage7. Applying the CAPM to PerformanceMeasurement: Single-Index Performance 43. Bond Prices, Spot Rates, and Forward8. Measurement Indicators 19. Discrete Probability Distributions 30. Swaps Rates9. Overview of Enterprise Risk 20. Continuous ProbabilityManagement Distributions 31. Properties of Stock Options 44. Yield to Maturity 45. One-Factor Measures of Price10. Financial Disasters 21. Monte Carlo Methods 32. Trading Strategies Involving Options Sensitivity11. Risk Management Failures: What are 22. Estimating Volatilities andThey and When Do They Happen Correlations 33. Commodity Forwards and Futures 46. The Rating Agencies 34. Fundamentals of Commodity Spot and Futures Markets: Instruments, Exchanges12. GARP Code of Conduct 23. Quantifying Volatility in VaR Models and Strategies 47. Country Risk Models 35. Foreign Exchange Risk 48. External and Internal Ratings 36. Corporate Bonds 49. Loan Portfolios and Expected Loss 50. Unexpected Loss 51. Measures of Financial Risk 52. 0perational Risk 53. Stress Testing 54. Principles for Sound Stress Testing - Exam Structure Practices and Supervision FRM PART I 11
  12. 12. Why Should One Go for FRM? STAND OUT TO EMPLOYERS DEVELOP YOUR KNOWLEDGE AND EXPERTISE JOIN AN ELITE GROUP DEMONSTRATE YOUR LEADERSHIP CONFIRM YOUR ACHIEVEMENTS ENHANCE YOUR REPUTATIONFRM PART I Exam Structure 12
  13. 13. Opportunities for FRM-Certified Professionals Professionals Career Changer Students Professionals who Enhance your career Students with an interest manage risk, money, or opportunity and increase in finance may elect to sit investments and want to scope of your job for the FRM Exam during broaden their knowledge opportunities by arming or immediately after of the different types of yourself with the highly completing their studies financial risk enter the professional and as a complement to their FRM Program in order to industry-wide recognized coursework. enhance their current certification. skill set. FRM PART I Exam Structure 13
  14. 14. Insights from FRM 2011 Exam FRM candidates came from 129 different countries There was a record 26,527 registrations for the FRM Exam Top 10 countries/regions with the most FRM candidates: China, India, U.S., Hong Kong, South Korea, Canada, United Kingdom, Singapore, Taiwan, Switzerland 91% of candidates who sat for the November 2011 FRM Exam would recommend that their colleagues also sit for the FRM ExamFRM PART 1 Exam Structure 14
  15. 15. Who is Hiring?The top 20 companies employing the most Certified FRMs are: FRM PART I Exam Structure 15
  16. 16. THANK YOUFRM PART I Exam Structure 16

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