Associate PRM™ Certificate course

  Intermediate CPD: 21 hours   3 days

Description

Associate PRM™ Certificate

The Associate PRM™ Certificate course is an intensive three-day course.

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.

Prerequisites

A basic knowledge of finance.

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
  • RAROC
  • 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

Dates and Locations

Date
Date(s): 17 Feb 2020 - 19 Feb 2020

Location
London

Category
Risk Management

Other Dates and Locations
Check our course schedule for alternative dates and locations where this course is offered.


   Note that the course fee of £3,120.00 already includes 20% VAT.

£3,120.00


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