Certificate in Financial Risk Management

How It Works

  1. 1. Select Certification & Register
  2. 2. Receive Online e-Learning Access (LMS)
  3. 3. Take exam online anywhere, anytime
  4. 4. Get certified & Increase Employability

Test Details

  • Duration: 60 minutes
  • No. of questions: 50
  • Maximum marks: 50, Passing marks: 25 (50%).
  • There is NO negative marking in this module.
  • Online exam.

Benefits of Certification


$49.00 /-
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Why should I take Financial Risk Management certification?

Financial risk management is the process of setting up the guidelines to define a policy on managing exposure to financial risk in order to optimize the amount of risk handled along with the financial interests. Financial risk managers do not make investment decisions, they create the guidelines that must be followed by the risk takers while analyzing investments for the company.

They have the responsibility of foreseeing, analyzing & controlling credit risks & market risks. His role also includes taking suitable measures to control Inflation risk, foreign exchange risk, Liquidity risk etc.

Study & Learn

  • Risk Basics - Nature & Source
  • Risk Classification
  • Measuring Risk
  • Risk Management
  • Issues in Risk Management
  • Basel
  • Case Studies

How will I benefit from Financial Risk Management Certification?

The Financial Risk Management Certification covers the best risk management practices and helps students & professionals in career development by broadening their skill set. Today’s market is experiencing a lot of change, especially when its dynamic nature comes into picture. In such circumstances, there is an urgent need of financial risk managers. Companies specializing in financial consulting or risk consulting constantly hire skilled Financial Risk Management employees.

Various public and private companies also need employees skilled in Financial Risk Management for their finance or risk departments.

Financial Risk Management Table of Contents

https://www.vskills.in/certification/financial-risk-management-table-of-contents

Financial Risk Management Tutorial

https://www.vskills.in/certification/tutorial/accounting-banking-finance/financial-risk-management/

Financial Risk Management Sample Questions

https://www.vskills.in/certification/financial-risk-management-sample-questions

Financial Risk Management Practice Test

https://www.vskills.in/practice/financial-risk-management

Financial Risk Management Interview Questions

https://www.vskills.in/interview-questions/financial-risk-management-interview-questions

Companies that hire Financial Risk Managers

Vskills Certified Financial Risk Management Candidate will find employment in Top MNC's and organisations like JP Morgan Chase, PwC, Deloitte, RBS India, KPMG.

Financial Risk Related Blogs

Checkout the latest online blogs on Financial Risk.

Financial Risk Jobs

Checkout the various job openings for Financial Risk Managers, click here..

Financial Risk Internships

Vskills runs its flagship internship programme where bright interns work with academic council, click to know more details..

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TABLE OF CONTENT

Chapter 1 - Risk Basics & Fundamentals

  • Nature of Risk
  • Sources of Risk
  • Need for Risk Management
  • Process of Risk Management
  • Risk Policy
  • Risk Management Approaches
  • Introduction to no-arbitrage principles  

Chapter 2 - Risk Classification

  • Credit Counterparty Risk
  • Market Risk
  • Operational Risk
  • Liquidity risk  
  • Other Risks

Chapter 3 - Measuring Risk

  • Measurement of Credit Risk
  • Measurement of Market Risk
  • Measurement of Interest Rate Risk and Asset Liability Management (ALM)
  • Measurement of Operational Risk
  • Beyond variance — Alternative risk measures
  • Statistical biases in performance evaluation — survivorship bias and data snooping

Chapter 4 - Mathematical & Statistical Foundations

  • Review of basic probability
  • Conditional expectations and variances
  • Multivariate distributions
  • The multivariate normal distribution
  • Introduction to martingales
  • Introduction to Brownian motion
  • Geometric Brownian motion
  • Review of vectors and matrices
  • Linear optimization
  • Nonlinear optimization

Chapter 5 - Interest Rates & Fixed Income Instruments

  • Interest rates and fixed-income instrument types
  • Floating rate bonds
  • Term structure of interest rates
  • Term structure lattice models
  • Cash account and pricing zero-coupon bonds
  • Forward equations
  • Model calibration
  • BDT model — pricing a payer swaption (applied example)
  • Fixed income derivatives pricing in practice

Chapter 6 - Derivatives — Forwards, Futures & Swaps

  • Forward contracts
  • Swaps
  • Futures
  • Futures pricing in Excel (practical session)
  • Fixed income derivatives — options on bonds
  • Fixed income derivatives — bond forwards
  • Fixed income derivatives — bond futures
  • Caplets and floorlets
  • Swaps and swaptions
  • Pricing forwards and futures in the binomial model

Chapter 7 - Options & Options Pricing

  • Introduction to options
  • Options pricing fundamentals
  • The 1-period binomial model
  • Option pricing in the 1-period binomial model
  • The multi-period binomial model
  • Intuition behind binomial pricing 
  • Pricing American options
  • Replicating strategies
  • Including dividends
  • The Black-Scholes model (introduction)
  • The Black-Scholes model (deeper treatment)
  • Pricing a European put on a futures contract (applied example)
  • Bull and bear spreads
  • Delta neutral strategies
  • Binomial model 

Chapter 8 - The Greeks & Derivatives Risk Management

  • Delta and gamma
  • Vega and theta
  • Risk management of derivatives portfolios
  • Delta-hedging

Chapter 9 - Volatility Surface & Advanced Options

  • The volatility surface
  • The volatility surface in action
  • Why is there a skew?
  • What the volatility surface tells us
  • Pricing derivatives using the volatility surface
  • Beyond the volatility surface and Black-Scholes

Chapter 10 -  Portfolio Theory and Capital Asset Pricing

    • Overview of mean-variance analysis
    • Mean-variance analysis in Excel (practical session)
    • The efficient frontier
    • Mean-variance with a risk-free asset
    • Risk-free frontier in Excel
    • Capital asset pricing model (CAPM)
    • Implementation difficulties with mean-variance
    • Negative exposures and leveraged ETFs

    Chapter 11 - Credit Risk — Managing & Modelling

    • Managing credit risk
    • Credit ratings
    • Credit derivatives
    • Modelling defaultable bonds
    • Pricing defaultable bonds
    • Credit default swaps (CDS)
    • Pricing credit default swaps

    Chapter 12 - Structured Credit — CDOs & Beyond

    • Structured credit and CDOs
    • The Gaussian copula model
    • A simple CDO example — Part I & Part II
    • Mechanics of a synthetic CDO tranche
    • Computing the fair value of a CDO tranche
    • Cash and synthetic CDOs
    • Pricing and risk management of CDO portfolios
    • CDO-squared and beyond

    Chapter 13 - Mortgage-Backed Securities

    • Introduction to mortgage mathematics
    • Prepayment risk and mortgage pass-throughs
    • Mortgage pass-throughs in Excel (practical session)
    • Principal-only and interest-only MBS
    • Risks of PO and IO MBS
    • Collateralised mortgage obligations (CMOs)
    • Pricing mortgage-backed securities

    Chapter 14  - Liquidity, Execution & Real Options

    • Liquidity, trading costs and portfolio execution
    • Optimal execution
    • Portfolio execution strategies
    • Optimal execution in Excel — Part I & Part II
    • Real options
    • Valuation of natural gas and electricity options
    • Real options in Excel

    Chapter 15  - Regulatory Framework & Basel II

    • Regulatory framework overview
    • The Basel Committee
    • Three pillars of Basel II
    • Scope of application
    • Pillar 1 — minimum capital requirements
    • The standardised approach
    • The internal ratings based (IRB) approach
    • Pillar 2 — supervisory review process
    • Pillar 3 — market discipline
    • Market risk under Basel II
    • Operational risk under Basel II

    Chapter 16  - Other Issues in Risk Management

    • Best practices in risk management
    • Challenges to risk management
    • Accounting issues
    • Tax issues
    • Management information systems (MIS)
    • Integrated risk management
    • Insurance as a risk management tool

    Chapter 17  - Case Studies in Financial Risk

    • Barings Bank
    • Herstatt Bank
    • Long-Term Capital Management (LTCM)
    • Enron
    • Orange County
    • Practitioner perspective 
    • Conclusion 

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