Financial Risk Manager (FRM®) Part I/II Preparatory Program Dec 2022

About IBF Certification for courses eligible for IBF Qualified (IBFQ)

IBF Certification is an industry endorsed mark of quality for finance professionals in Singapore.
Participants who successfully complete this course and fulfill the required number of Technical Skills and Competencies (TSCs) for the selected job role can apply to be conferred the IBF Qualified (IBFQ) certification status.
Find out more about IBF certification and the application process here.

Course Objective

This program helps to prepare professionals in the financial industry for the rigorous examinations of the FRM® certification program. This certification is globally recognized and is administered by the Global Association of Risk Professionals (GARP).

The Global Association of Risk Professionals (GARP) is a not-for-profit organization and the only globally recognized membership association for risk managers. GARP's goal is to help create a culture of risk awareness within organizations, from entry level to board level.

In the areas of financial and energy risk management, GARP sets the global standard in professional designation with the FRM (Financial Risk Manager) and ERP (Energy Risk Professional) certifications. Through our educational programs, specialized content, in-person or online events, and chapter program, GARP promotes best practices in risk management and supports ongoing professional and career development for risk managers.

FINANCIAL RISK MANAGER (FRM®) CERTIFICATION

With seismic changes continuing to occur in the financial services industry worldwide, professionals who manage risk, money and investments are recognizing the need to objectively demonstrate a globally standardized level of up-to-date industry knowledge.

Requiring the successful completion of a rigorous two-part, practice-oriented examination, the Financial Risk Manager (FRM) designation provides a bedrock foundation in a profession and industry that is rapidly evolving. Since the FRM Program's inception in 1997, Certified FRMs have achieved positions such as Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director of Investment Risk Management, to name a few.

The global FRM community is growing dramatically, with Certified FRMs represented at nearly every major banking institution, government regulator, consulting firm and financial services institution around the world.

Target Audience

• A financial risk professional with work experience in risk management or related field including auditing, trading, portfolio management, academic/industry research, risk consulting and/or risk technology
• An individual with a sufficient amount of working experience in a business field other than risk management, but is interested in switching career paths to risk management
• A recent graduate with little work experience

*This course is designed to help students prepare for the FRM examination administered by GARP. For those who want to take the FRM examination, they must satisfy the entry requirements set by GARP. For details and registration of the examination, please visit the website: www.garp.com.

Certified FRM Testimonial video: https://garp.wistia.com/medias/rbpjxeluw5

FRM examination consists of two parts.

The FRM Part I curriculum covers the tools used to assess financial risk: quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models.

The FRM Exam Part II focuses on the application of the tools acquired in Part I: market, credit, operational risk and resiliency, investment management as well as current issues in financial markets.

Part I

Module 1: Foundations of Risk Management & Quantitative Analysis

(23, 30, Dec 2022 7, 14 Jan 2023)
Module 1 covers 40 percent of the topics included in the Part I of the FRM examination. It covers two broad topics:

Foundations of Risk Management

• Basic risk types, measurement and management tools
• Creating value with risk management
• Risk governance and corporate governance
• Credit risk transfer mechanisms
• The Capital Asset Pricing Model (CAPM)
• Risk-adjusted performance measurement
• Multi-factor models
• Data aggregation and risk reporting
• Financial disasters and risk management failures
• Ethics and the GARP Code of Conduct

Quantitative analysis

• Discrete and continuous probability distributions
• Estimating the parameters of distributions
• Population and sample statistics
• Bayesian analysis
• Statistical inference and hypothesis testing
• Estimating correlation and volatility using EWMA and GARCH models
• Volatility term structures
• Correlations and copulas
• Linear regression with single and multiple regressors
• Time series analysis and forecasting
• Simulation methods

Module 2: Financial Markets and Products & Valuation and Risk Models

(28 Jan and 4, 11, 18 Feb)
Module 2 covers 60 percent of the topics included in the Part I of the FRM examination. It covers two areas:

Financial Markets and Products

• Structure and functions of financial institutions
• Structure and mechanics of OTC and exchange markets
• Structure, mechanics, and valuation of forwards, futures, swaps and options
• Hedging with derivatives
• Interest rates and measures of interest rate sensitivity
• Foreign exchange risk
• Corporate bonds
• Mortgage-backed securities

Valuation and Risk Models.

• Value-at-Risk (VaR)
• Expected shortfall (ES)
• Measuring volatility
• Economic and regulatory capital
• Stress testing and scenario analysis
• Option valuation
• Fixed income valuation
• Hedging
• Country and sovereign risk models and management
• External and internal credit ratings
• Expected and unexpected losses
• Operational risk

Part II

Module 3: Market Risk and Credit Risk: Measurement and Management

(25 Feb and 4, 11, 18 Mar)
Module 3 covers 50 percent of the topics included in the Part II of the FRM examination. It covers two topics:

Market Risk Measurement and Management Valuation and Risk Models.

• VaR and other risk measures
  • Parametric and non-parametric methods of estimation
  • VaR mapping
  • Backtesting VaR
  • Expected shortfall (ES) and other coherent risk measures
  • Extreme Value Theory (EVT)
• Modeling dependence: correlations and copulas
• Term structure models of interest rates
• Volatility: smiles and term structures
• Fundamental Review of the Trading Book

Credit Risk Measurement and Management

• Credit analysis
• Default risk: Quantitative methodologies
• Expected and unexpected loss
• Credit VaR
• Counterparty risk
• Credit derivatives
• Structured finance and securitization

Module 4: Operational Risk and Resiliency, Liquidity and Treasury Risk Measurement/Management and Investment Management and Current Issues in Financial Markets

(25 Mar, 1, 8, 15, 29 Apr)
Module 4 covers 50 percent of the topics included in the Part II of the FRM examination. It covers three topics:

Operational Risk and Resiliency

• Principles for sound operational risk management
• Risk appetite frameworks and enterprise risk management (ERM)
• Risk culture and conduct
• Analyzing and reporting operational loss data
• Model risk and model validation
• Risk-adjusted return on capital (RAROC)
• Economic capital frameworks and capital planning
• Stress testing banks
• Third-party outsourcing risk
• Risks related to money laundering and financing of terrorism
• Regulation and the Basel Accords
• Cyber risk and cyber-resilience
• Operational resilience

Liquidity and Treasury Risk Measurement and Management

• Liquidity risk principles and metrics
• Liquidity portfolio management
• Cash-flow modeling, liquidity stress testing, and reporting
• Contingency funding plan
• Funding models
• Funds transfer pricing
• Cross-currency funding
• Balance sheet management
• Asset liquidity

Risk Management and Investment Management

• Factor theory
• Portfolio construction
• Portfolio risk measures
• Risk budgeting
• Risk monitoring and performance measurement
• Portfolio-based performance analysis
• Hedge funds

Current Issues in Financial Markets (could be potentially updated)

• Bitcoin and virtual currencies
• Market and funding liquidity
• Algorithmic trading and fixed income market algorithmic trading
• Negative policy rates
• Emerging economies and corporate debt

RMI Assessment

As an IBF funding requirement, there will be RMI assessments for Part I and Part II. However, passing the RMI assessments would not guarantee that candidates could pass the FRM exam. Nor would it provide the candidate with the Financial Risk Management (FRM) Certificate.

Part I: 100 multiple-choice questions (4 hours)
Part II: 80 multiple-choice questions (4 hours)

Course Schedule

To meet the needs of the working professionals, the classes will be held on Saturdays from 9.00am to 12.30pm. Tentatively the venue will be 21 Heng Mui Keng Terrace, I3 Building, Level 4, Executive Seminar Room, Singapore 119613.

Final venue and timings for the classes will be confirmed closer to the date.

Course Fee

		Early Bird Special Enroll on or before
		6 Dec 2022
		(Save 15%)	Original Price
Module 1	Foundation of Risk Management & Quantitative Analysis	1390	1630
Module 2	Financial Markets and Products & Valuation and Risk Models	2040	2400
	RMI Assessment Fee for Part I	250	250
Module 3	Market Risk and Credit Risk: Measurement and Management	1720	2020
Module 4	Operational Risk, Risk Management and Investment Management & Current Issues in Financial Markets	2040	2400
	RMI Assessment Fee for Part II	250	250

Fees quoted are subject to prevailing GST

Please note that in no way does this represent an endorsement of the quality of the training provider and programme. Participants are advised to assess the suitability of the programme and its relevance to participants' business activities or job roles.

IBF STS Funding

To be eligible for IBF STS funding for Part I, you must complete both Module 1 & 2 and pass Part I assessment. To be eligible for IBF STS funding for Part II, you must complete both Module 3 & 4 and pass the Part II assessment.

70% subsidy for the training course fees eligible for both company-sponsored and individual candidates to attend a training programme that has been accredited under the STS.  90% for 40 years old and above for Singapore citizens.  The funding support is capped at S$7,000 per participant per programme.

Please refer to https://www.ibf.org.sg/programmes/Pages/IBF-STS.aspx, or email to: funding@ibf.org.sg for more information on STS funding.

All Singaporeans aged 25 and above can use their $500 SkillsFuture Credit from the government to pay for a wide range of approved skills-related courses. Visit the SkillsFuture Credit website to choose from the courses available on the Training Exchange course directory. Skillsfuture credits will be offset from the fees payable.
Course Reference Number: TGS-2019507411, Funding Validity Period: 24 Oct 2019 - 30 Jun 2026.

Please email the completed registration form to:

Ms Jaslin Chong
Email: rmicsh@nus.edu.sg
NUS Risk Management Institute
National University of Singapore
21 Heng Mui Keng Terrace
I3 Building #04-03
Singapore 119613
Tel: 6516 8497 Fax: 6874 5430
(Cancellations are non-refundable although participants can be substituted.)