Associate PRM™ Certificate course

  Intermediate CPD: 21 hours   3 days   Live


Associate PRM™ Certificate

This course is an intensive seminar designed to prepare participants for the Associate PRM™ Certificate.

Learning Outcomes

The key learning objectives of the Associate PRM are to:

  • Gain a familiarity with the concept of risk management and its place in the business, organization or system
  • Gain an overall understanding of the concepts of risk management techniques in a non-quantitative framework
  • Understand how governance fits into the concept of risk management
  • Understand the concepts of risk and return
  • Gain a familiarity with the structure and workings of various financial markets
  • Gain a familiarity with the financial instruments used in risk management
  • Understand the concepts of interest rate risk and hedging
  • Understand the concepts of assetliability management
  • Understand the concepts of market risk management
  • Understand the concepts of retail and commercial credit risk management
  • Understand the concepts of operational risk management
  • Understand how performance can be measured
  • Understand the concept of enterprise risk management
  • Understand industry standards and best practices of financial risk management
  • Understand the positive role that risk management can play

Attending this course will help prepare you for the Associate PRM™ Certificate exam.

Who Should Attend

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.

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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 PRMIA 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 240 courses.
  • 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

Seminar Content

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
  • Diversification
  • Portfolio theory
  • The efficient frontier
  • The value of a call option
  • Risk-adjusted returns
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 ten core PRMIA Governance Principles
  • How the PRMIA Governance Principles apply to the Board, the finance and accounting function, and 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
  • Swaptions
  • 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
  • Role of the ALCO
  • Funding gaps
  • Duration gaps
  • Liquidity risk in banks
  • Funds Transfer Pricing (FTP)
Section F: Retail and Commercial Credit Risk Management
  • 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
  • CreditMetrics
  • 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
  • Differentiating between a key risk indicator and a 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
  • Metallgesellschaft
  • Orange County
  • Riggs Bank
  • LTCM
  • Continental / Penn Square
  • Bankgesellschaft Berlin
  • Credit Lyonnais
  • NAB FX Options
  • Barings Bank
  • WorldCom
  • Banker’s Trust
  • Daiwa
  • G30 Report and Recommendations
  • Governance lessons
  • Market risk lessons
  • ALM lessons
  • Market risk lessons
  • Credit risk lessons
  • Operational risk lessons
  • Governance lessons
Mock Examination and Review

When and Where
   26 Aug 2024 - 28 Aug 2024
   New York
   Risk Management

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Other Dates and Locations
Search for Associate PRM™ Certificate course in our course schedule for alternative dates and locations where this course is offered.



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