Financial risk management is an important tool in today's economic scenario. Read below for the course details and career prospects of Financial Risk Management.

Financial Risk Management Courses

Many people have a pretty hazy idea of finance and markets but perhaps all will agree that it is fraught with risk. No one can predict with certainty what can go wrong or right with the market or with their own finances. That is why the bulk of all financial matters are left safely into the hands of experts in this field who are known as financial managers. The job of the financial managers is to ensure that the finances of corporations are not only safe but keep on growing. However, the volatile nature of the markets ensures that the managers do not have a calm day. The risks involved in financial transactions are huge and managers are constantly on their toes protecting their clients’ money. That is why it is very necessary that they should be knowledgeable about the risks in today’s markets and so derive measures to counter it. This is provided by financial risk management, which prepares the managers to better nullify the vagaries of an unpredictable market. Read below to know all the information regarding Financial Risk Management course.
Courses In Financial Risk Management 

The minimum qualification that is required for the Financial Risk Management (FRM) certificate course is graduation. The candidate then should sit for the FRM examination. The candidate should also have a minimum work experience of two years either in risk management or in other related fields like auditing, risk technology, economics, industry research, portfolio management, academic faculty, or risk consulting. Since, it is a sort term course even dealers, traders, asset and fund managers are also eligible for it. 

Details Of The Course Curriculum
The course structure of FRM varies among different institutes. The curriculum of FRM is set by the Global Association of Risk Professionals (GARP). The course is divided into two parts – Part 1 and Part 2. 

PART 1 certification course
  • Foundations of Risk Management
  • Overview of Risk Management
  • Classification of Risks
  • Capital Allocation
  • CAPM and Multifactor Models
  • Case Studies: y - Metallgesellschaft, Sumitomo, LTCM, Barings Bank
Quantitative Analysis
  • Time Value of Money
  • Descriptive Statistics
  • Probability Distribution
  • Fundamentals of Statistics
  • Forecasting correlation and Volatility
  • Extreme Value Theory - Basic Principles
  • Monte Carlo Methods 
Financial Markets And Products
  • Introduction to Derivatives
  • The Futures Market
  • Fixed Income Derivatives
  • Valuing Futures and Forwards
  • Swaps
  • Options
  • Bond Markets
  • Corporate Bonds
  • Currency Risk and Currency Markets
  • Commodity Risk and Commodity Markets
Valuation And Risk Models
  • Value-at-Risk
  • VaR Methods
  • Yield Measures
  • Yield Curve Analysis
  • Bond Pricing
  • Bond Price Volatility
  • Principles of Options Pricing
  • Stress Testing
  • Overview of Credit Risk
  • Rating Agencies and Their Grades
  • Transition Matrix and Correlated Migration
PART 2 Certification Course
  • Market Risk Measurement And Management
  • Credit Risk Measurement And Management
  • Operational And Integrated Risk Management
  • Risk Management And Investment Management 

The specialization in financial risk management is only available in select universities and institutes. Candidates who specialize in this course will receive the title Specialist in Financial Risk Management. In addition, a specialization in this field can qualify the candidate for advance studies like Master in International Business, Master of International Business Administration, and Master of Science in finance. A specialization in FRM will help the student understand the strategies, principles, measurement techniques, mathematical models, and structure of risk control and risk management. 

Skills Required
The candidate must have a strong foundation in finance. The financial knowledge of the candidate should both be academic as well as with experience. Other than that, there are no definite skills that qualify a candidate for FRM. Since financial risk management encompasses broad categories, the candidate must have a thorough understanding of the type of risk that he or she wishes to specialize in. This will prove to be beneficial as each risk case has a definite set of problems. Analytical skills and knowledge of the capital markets are assets that a candidate pursuing this course must possess. Knowledge of language is another important skill. Since the financial situation and the risks vary from time to time, so the candidate must also have an understanding of the risks that is currently facing the market. 

Career Prospects
In the present scenario, financial risk management is the most sought after skill due to the volatile nature of the markets. This profession has been on a steady growth since the last two decades. With increased complexity of financial services and products, a certificate in FRM gives a huge boost to any financial career. FRM certificate holders can hold positions like Investment Risk Management, Chief Risk Officer, and Senior Risk Analyst etc. 

Some Of The Best Institutes Offering This Course Globally
  • International Financial Risk Institute, Switzerland
  • The Institute of Risk Management, London
  • Indian Institute of Banking and Finance, Mumbai
  • Institute of Insurance and Risk Management, Andhra Pradesh
  • Indian Institute of Quantitative Finance, Mumbai
  • Global Association of Risk Professionals, USA and UK
  • Kaplan Schweser, USA
  • Ace3Levels LLP, Singapore, Mumbai, Delhi, Bangalore
  • The Institute For Financial Analysts, Lebanon
  • The Institute of Chartered Accountants in India, New Delhi
  • Indian Institute of Management, Calcutta
  • Kesdee Inc. California
  • New York Institute of Finance, New York

More in Career in Management