FRM Exam Preparation Provider

The NUS Risk Management Institute (RMI) was established in 2006 as a research institute at NUS dedicated to the area of financial risk management. The establishment of RMI was supported by the Monetary Authority of Singapore (MAS) under its program on Risk Management and Financial Innovation. RMI aims to be a world-class center in risk management through research, education and training. Leveraging its expertise in financial risk management, RMI offers a wide range of certification training programs as well as in-house training programs.

RMI's training programs are both unique and comprehensive. The training programs are suitable for clients in emerging markets from basic training to benchmarking, capacity building and facilitating decision-making processes. Topics include market risk management, credit risk management, operational risk management, corporate governance, performance measurement and attribution, and equity derivative and structured products. Over the years, we have also developed a leading-edge repository of research and training content to draw from. The faculty consists of highly respected and very experienced trainers from academia and industry.

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 

EXAM STRUCTURE

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

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

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 and integrated risk management, investment management as well as current market issues.

Module 1: Foundations of Risk Management & Quantitative Analysis

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
• The role of risk management in corporate governance
• Enterprise Risk Management (ERM)
• Financial disasters and risk management failures
• The Capital Asset Pricing Model (CAPM)
• Risk-adjusted performance measurement
• Multi-factor models
• Data aggregation and risk reporting
• 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

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)
• 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

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

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

• VaR and other risk measures
• Modeling dependence: correlations and copulas
• Term structure models of interest rates
• Discount rate selection
• Volatility: smiles and term structures

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 and Integrated Risk management, Risk Management and Investment Management and Current Issues in Financial Markets

Module 4 covers 50 percent of the topics included in the Part II of the FRM examination. It covers two topics:

Operational and Integrated Risk Management

• Principles for sound operational risk management
• Enterprise Risk Management (ERM) and enterprise-wide risk governance
• IT infrastructure and data quality
• Internal and external operational loss data
• Methods of determining operational risk capital
• Model risk and model validation
• Extreme value theory (EVT)
• Risk-adjusted return on capital (RAROC)
• Economic capital frameworks and capital planning
• Liquidity risk measurement and management
• Failure mechanics of dealer banks
• Stress testing banks
• Third-party outsourcing risk
• Regulation and the Basel Accords 

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

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

COURSE SCHEDULE

To meet the needs of the working professionals, the classes will be held on Saturday mornings (9.00am to 12.30pm) except Friday evening (7.00pm to 10.30pm)

Venue will be 21 Heng Mui Keng Terrace, I3 Building, Level 4, Executive Seminar Room, Singapore 119613.