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Financial Risk Manager (FRM)

Financial Risk Manager (FRM)

Course Overview:

The Financial Risk Manager (FRM) certification is a globally recognized credential for risk management professionals. It covers market, credit, operational, and liquidity risk, preparing candidates for roles in finance, banking, and investment sectors.

Duration:

The FRM certification typically takes 1.5 to 2 years to complete. However, the time may vary depending on the candidate's pace in clearing both parts of the exam and accumulating the required two years of relevant work experience.

Syllabus (Semester-wise):

The FRM certification is awarded by the Global Association of Risk Professionals (GARP) and is divided into two parts. Each part has a set of topics or domains that need to be studied.

Part 1:

  1. Foundations of Risk Management

    • Role of Risk Management

    • Risk Management Failures

    • Corporate Governance

  2. Quantitative Analysis

    • Probability and Statistics

    • Regression and Time Series Analysis

  3. Financial Markets and Products

    • Derivatives (Futures, Options, Swaps)

    • Bond Pricing

    • Interest Rates

  4. Valuation and Risk Models

    • Value-at-Risk (VaR)

    • Stress Testing and Scenario Analysis

    • Credit Risk Models

Part 2:

  1. Market Risk Measurement and Management

    • VaR methodologies

    • Fixed Income Risk

    • Volatility Modeling

  2. Credit Risk Measurement and Management

    • Default Risk Models

    • Credit Derivatives

    • Securitization

  3. Operational and Integrated Risk Management

    • Risk Management Frameworks

    • Corporate Risk Governance

    • Operational Risk Measurement

  4. Liquidity and Treasury Risk Measurement and Management

    • Liquidity Risk Management

    • Contingency Funding Planning

    • Treasury Risk Management

  5. Risk Management and Investment Management

    • Risk Budgeting

    • Portfolio Construction

    • Hedge Funds and Asset Allocation

  6. Current Issues in Financial Markets

    • Current Regulatory Environment

    • Basel Norms

    • Financial Crises

Average Fees:

The total cost for the FRM certification, including exam fees and study materials, is approximately INR 1.5 lakhs to 2 lakhs.

Exams to Attend:

  • FRM Part 1 Exam

  • FRM Part 2 Exam

Both exams are offered twice a year, in May and November.

Ten Most Ranking Institutions Combined Ranking in India:

  1. Indian Institute of Management (IIM), Ahmedabad

  2. Indian Institute of Management (IIM), Bangalore

  3. National Institute of Securities Markets (NISM), Navi Mumbai

  4. EduPristine, Mumbai

  5. FinTree, Pune

  6. ICFAI Business School (IBS), Hyderabad

  7. IMS Proschool, Mumbai

  8. FinTram Global, Delhi

  9. Jagdish Sheth School of Management, Bangalore

  10. SAGE University, Indore

Top Ten Institutions in Kerala:

  1. Indian Institute of Management (IIM), Kozhikode

  2. Logic School of Management, Cochin

  3. Lakshya FRM Campus, Cochin

  4. Inspire Academy, Calicut

  5. Pinnacle Academy, Thiruvananthapuram

  6. KS Academy, Ernakulam

  7. Coral Risk Management College, Thrissur

  8. Shankar FRM Academy, Thrissur

  9. Prince Financial Academy, Palakkad

  10. TICS Institute, Kollam

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