Financial Risk Managers level 1 Online Course

Business is all about taking a risk and making a profit. The bloodline of a business is finance. This part rules the implementation and resource division of a business. That is why the maximum risk is involved in the allocation of funds in various sectors of a business. To minimise the risk, a business adopts a scientific approach by using various financial tools to visualise the future trends and potential loss threats.

Finance is a dynamic sector and to conquer it every organisation needs a team of apt risk management professionals. The uncertainty of the market cannot be overlooked and need to be focused properly to analyse the parameters that control the economy. With the advent of industrialisation and growth in an economy, the scientific approach is also evolving. This is why every business needs these professionals to foresee, manage and minimise risk.

Who are Financial Risk Managers?

Financial Risk Managers are the qualified professionals who have passed the stringent level of the certification exams. They have the credible proof of knowledge regarding the prowess of analysis, control, and assessment of potential factors that govern credit risk, liquidity risk and market risk. The professionals play an eminent role in the private as well as the government financial sector like investment banks, finance management firms and other public sectors.

FRM level 1 exam

The Financial Risk Manager is a designated post offered to those who have been internationally certified after passing the FRM Level 1 and 2 Exams. This certification is issued and offered by Global Association of Risk Professionals (GARB). The exam has two phases, FRM Level I and Level II. Both the exams have a curriculum that extensively covers the major topics involved in financial risk management.

FRM Level 1 is the primary phase of the exam schedule that has a duration of four hours usually conducted in the morning. It has 100 multiple choice type questions based on the subjects that cover the core areas of financial risk management.

The subjects involved are:

• Risk management foundation
• Quantitative analysis
• Financial products
• Financial market
• Essential risk modeling and valuation

The multiple choice type questions have no negative marking but the candidate must have an apt and in-depth knowledge to answer them properly and score good marks to qualify. Each question will have 4 possible answer options. The questions are set as per the conditions and situations a financial risk manager often faces.

In order to maintain the FRM level of qualification and to know the market trends, a certified FRM is recommended to enlist his or her name in Continuing Professional Education Program.

Curriculum

1. Foundations of Risk Management
2. Quantitative Analysis
3. Financial Markets and Products
4. Valuation and Risk Models

About the online FRM Level 1 prep course

The entire syllabus is so well segregated in proper sections that a student or a professional will not have any problem to learn the basic and advanced knowledge of financial risk management subjects.

• Section 1

The first section deals with an introduction to the world of Risk Management. A novice or an experienced professional must know the segments and factors involved in the risk management sector properly. After familiarising with the factors, the process is introduced to the aspirant. Risk-adjusted return is taught then followed by Extreme Market Movements. Other than these topics, certainly required insights about Portfolio and Capital Asset Pricing Model (CAPM) will be taught vividly with good examples and case studies. The case studies are the instances that will impart good practical knowledge of the implementation of the models and theories learned by the aspirant.

• Section 2

The second section deals with statistical tools and probability needed to foresee the future trends and analyse risk. This section will impart knowledge about these mathematical applications vividly so that the students can use it properly in the risk management processes.

This segment of the curriculum is entirely based on the Quantitative Analysis part of the FRM level 1 curriculum that has 20% weight in the exam papers.

• Section 3

The third section covers the essentials of Financial Markets and Products like derivatives, forward and future contracts. After a brief introduction to the basics, the section takes a learner to the advanced level of the financial products like currencies, commodities, equities, fixed income and others in an efficient way.

• Section 4

The models related to valuation and risk calculation will be covered in this section with an extensive introduction to the Option Greeks. The learner will be taught how the essential risks associated with every desired product will be designated with the Greek alphabets. Then the next part will teach about the bond valuation, its duration, and convexity in details.

The entire fourth section deals with the models that are adopted to calculate and analyse risks of various financial products with the help of statistical tools learned in the previous section.

Benefits of FRM certification

After passing FRM Level I, the aspirant become eligible for the next level that is FRM Level II. He or she has to enter for the next level within 4 years of passing the first one. Being a certified professional the aspirant can enjoy the following benefits:

1. Be different from the crowd by having the certificate in your infirmary so that the employers can recognise you easily.
2. The more you read and study about the financial risk the more you become expert in this particular field. The curriculum makes you more knowledgeable than the others.
3. The certification is a label that you have learned all the basic things a financial risk manager must know and can implement them properly to serve the purpose.
4. Adding another feather in the cap equivalent to attracting more and better opportunities towards you.
5. Your salary will take a giant leap. FRM professionals are paid a very handsome salary that other similar non certified professionals can dream of.
6. Become a superior expert in the field and lead an entire team. It will bring reputation and you can be a part of an elite group of risk managers.

This FRM Level 1 course suits best for the professionals who are in the financial risk management sector. Novice aspirants having the basic knowledge about finance can go for this FRM Level 1 prep course too and can be benefited after passing the FRM Level 1 exam. Professionals like analysts, bankers, managers in this industry can enhance their career prospect.

Scope of FRM certification

All the financial service providers, both national and international, recognise the certificate. It becomes very easy to demonstrate the prowess of the certificate bearer. Being a certified FRM you can enjoy the distinctive edge over the other risk managing professionals in the market and hence can be a step ahead in the competition.

Almost all companies need the help of the Financial Risk Management firms which on the other hand needs certified professionals like you to maintain their reputation and service. Henceforth the demand of the professionals is not going to fade away anytime soon. The certificate is the solid proof that you are equipped with state of the art techniques and methods to manage risk.

A computer with a good internet connection will do the charm. The aspirant must have a background in finance to understand the concepts easily.

Prospects of FRM

An FRM certified professional can get opportunities on the following grounds:

1. Risk management analysis (consultant or analyst)
2. Risk Manager in Personal banking
3. Managing Director, Corporate Risk
4. Risk Quantification Manager
5. Commercial Risk Manager in large enterprises
6. Operational Risk Manager (Senior section)
7. Credit and Market Risk Specialist

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