ACF Academy
Risk Management Training Training
 Risk Management Training
Targeted Audience:
 The program is intended for everyone studying to for the Associate PRM™ Certificate. This qualification is intended for staff entering the risk management profession, or for those who interface with risk management disciplines on a regular basis, such as auditing, accounting, legal, and systems development personnel who want to understand fundamental risk management methods and practices.
 A basic knowledge of finance.
CPE Credits:
 21 hours
Course Level:

PRM Associate Certificate

ACF’s training program for delegates studying for the Associate PRM Certificate uses our unique blended-learning methodology which integrates eLearning, instructor-led sessions, and hands-on practical application.


Program Objectives

The principal objectives of the seminar are to:
  Give delegates a clear understanding of the principles and practices of risk management
  Provide a thorough grounding in the concepts of risk and return
  Ensure that delegates understand the workings of each of the major financial instruments and markets, and the underpinnings of modern finance theory
  Demonstrate the benefits of hedging and the different ways in which efficient hedges can be constructed
  Explore the principles of bank Asset and Liability Management (ALM)
  Discuss risk management practices in market, credit, and operational risk, and in corporate governance
  Examine cases where risk management has failed
  Review current best practices
  Ensure that delegates are thoroughly prepared for the Associate PRM Certificate exam

Training Methids
Our blended-learning program comprises the following steps:
Training methods - the steps
  • Pre-Course Preparation using Acumen eLearning system – Delegates will have access to the relevant courses from the extensive Acumen eLearning System library. Acumen facilitates efficient preparation for the instructor-led sessions, and offers convenient revision for the Associate PRM™ Certificate exam itself.
  • Intensive Instructor-led Training – This intensive three-day program will provide thorough training for the Associate PRM™ Certificate, and will cover every aspect of the syllabus. During the various sessions, delegates will have the opportunity of discussing more difficult areas, trying hands-on practical exercises to test and consolidate knowledge, and dealing with any difficulties encountered in the online learning.
  • Mock Examination – At the end of the intensive three-day program, delegates will sit a shortened version of the full three-hour Associate PRM™ Certificate exam to gain practice at the type of questions which are asked. The instructor will fully de-brief the mock exam so that delegates can see the reasons behind any answers they have got incorrect.
  • Post-Course Revision and Review – Delegates will have continuing access to the Acumen eLearning courses for further revision and review. In addition, they can contact the instructor by email for answers to specific questions about the syllabus or the exam.
Learning Resources

On joining ACF’s Associate PRM™ Certificate Training Program, delegates will enjoy full access to:

  • The Essentials of Risk Management – the main reference source for the Associate PRM™ Certificate.
  • Extracts from the Professional Risk Managers' Guide to Financial Markets and Risk Management Practices – which supplement the Essentials of Risk Management.
  • A series of case studies and workshop exercises – each with a fully worked model answer – to illustrate the calculations involved in pricing and risk measurement.
  • The complete Acumen eLearning system library, comprising around 200 courses and over 600 modules.
  • A complete set of presentation materials on every topic covered by the instructor-led sessions, comprising around 1,000 professionally-produced slides explaining every topic
  • AcumenAssess – our online testing and appraisal system pre-loaded with questions on Associate PRM™ Certificate topics.
  • The Acumen Learning Portal – with the complete set of learning resources, all in one easy-to-access place
Program Content
The three-hour Associate PRM™ Certificate exam is split into the following eight sections:  
No. of questions
Risk Management, Risk and Return
Governance and PRMIA Standards
Financial Markets
Interest Rate Risk and Hedging 
Market Risk Management and ALM
Retail and Commercial Credit Risk Management 
Operational Risk Management and Performance Measures
Case Studies

The intensive three-day instructor-led session, complemented by the Acumen eLearning System, will cover the entire syllabus, as in the details below...

Course Outline
 Section A: Risk Management, Risk and Return
Definition of financial risk
Role of the risk manager
Risk terminology
Types of risk: Market, Credit, Operational, Reputational, Legal, Business, Liquidity
The balance between risk and reward
Risk-adjusted returns
Implementing a financial risk management program
Hedge accounting
Hedging at Merck
Portfolio theory
The efficient frontier
The value of a call option
 Section B: Governance and PRMIA Standards
Importance of governance
Role of the Board of Directors
Typical financial risk management structure
Basic risk management policies
Importance and meaning of an Escalation Policy
Role of external parties (external audit, regulators, “the market”)
The seven core PRMIA Governance Principles
How the PRMIA Governance Principles apply to the Board
How the PRMIA Governance Principles apply to the finance and accounting function
How the PRMIA Governance Principles apply to the risk management department
PRMIA Standards of Best Practice, Conduct and Ethics for Professional Risk Managers
Positive role of risk management in the business process
Basic operations of the PRMIA organization and practices
 Section C: Financial Markets
Money markets
Bond markets
Stock markets
Foreign exchange markets
Futures markets
OTC markets
Commodities markets
Energy markets
 Section D: Interest Rate Risk and Hedging
Definition of interest rate risk
Yields and bond prices
The yield curve and bond prices
Duration and convexity
Risk of a single security
Portfolio risk
Principles of swaps
Principles of options
Caps and floors
Exotic options
Financial engineering
 Section E: Market Risk Management and ALM
Notional amounts of exposure
Option “Greeks”
The concept of Value at Risk (VaR)
Value at Risk and risk limits
Determining Value at Risk measures
When VaR doesn’t work
Stress testing and extreme events
Scenario planning
Liquidity risk
What is ALM?
Role of the ALCO
Funding gaps
Duration gaps
Liquidity risk in banks
Funds Transfer Pricing (FTP)
 Section F: Retail and Commercial Credit Risk
Role of the credit officer
Retail credit risk
Credit scoring
Default, default rates and loss rates
The value of a customer
Securitization and risk transfer
Pricing risk
Role of rating agencies
Credit ratings
Migration of credit ratings
Internal rating scores and methods
Basic financial measures in a loan risk assessment
Loss Given Default (LGD)
Counterparty credit risk
Credit models
Risk of a single credit
Portfolio credit risk
Credit VaR
MKMV models
Actuarial and reduced-form models
Overview of credit derivatives
 Section G: Operational Risk Management and
                  Performance Measures
Operational loss
Quantifying operational loss
Link between operational and other risks
Key risk indicator
Key risk driver
Framework for analysing operational risk
Implementing an operational risk framework
Implementing a scenario-based process for assessing and quantifying operational risks
Assessing risks from new business processes, products or change management initiatives
Mitigation and mitigation techniques
Role of insurance in operational risk transfer
Risk capital
Core uses of risk capital
Risk capital vs. regulatory capital
Uses of RAROC in business decision making
 Section H: Case Studies
The US S&L Crisis
Continental / Penn Square
Orange County
Riggs Bank
California Power Crisis
Bankgesellschaft Berlin
Credit Lyonnais
NAB FX Options
Barings Bank
Banker’s Trust
G30 Report and Recommendations
Governance lessons
Market risk lessons
ALM lesson
Credit risk lessons
Operational risk lessons
Governance lessons
 Mock Examination and Review




"Very interesting, practical and original way to understand concepts by using simulations."

– Rafael I.