FRM

Financial Risk Manager (FRM)

The awareness, understanding, quantification and management of risk have become vital over the last years. Especially the financial crisis has emphasized the importance to be aware and understand risk types and corresponding exposures to guarantee stable financial institutions and corporations, and a robust financial system.

Based on a longtime experience, Goethe Business School therefore offers a series of courses in financial risk management. These courses cover the latest developments in market risk, credit risk, and operational risk, and also provide for the necessary foundations in quantitative methods, fixed-income mathematics, regulation, and accounting.

GBS offers two courses in the field of financial risk management as customized corporate programs: "The Basics of Financial Risk Management" and "An Advanced Understanding of Financial Risk Management". The course length of these two programs offered by GBS can be adjusted based on the training requirements of the company.

 

The Basics of Financial Risk Management

This 3-day course is ideally suited for a first time exposure to financial risk management and does not require participants to have prior knowledge in risk management.

Learning Objectives
This course introduces the basic concepts, methods and products to understand and measure financial risk.
The course starts with an introduction to the foundations of risk management including standard financial models and also explains measures to determine financial performance and relate it to risk.
After this introduction the course focuses on financial markets and products in detail and discusses specific products intensely used in practice to limit and manage risk. More specifically, financial products are related to several risk concepts such as hedging, speculation, arbitrage and pricing.
The final part of the course focuses on valuation and risk models and introduces participants to important risk management concepts and measurement techniques.

Key Concepts

The Foundations of Risk Management

  • Why is risk management needed?
  • Investors and risk management
  • Capital asset pricing model vs. arbitrage pricing theory
  • Performance measures and measurement
  • Potential failures in risk management
  • Financial Markets and Financial Products   
  • Foreign exchange risk
  • Forwards & futures in a “risk neutral” – world
  • The “basis” and hedge ratio
  • Options (boundaries, american vs. european, put-call parity, strategies, pricing and risk)
  • Demand and supply of options
  • Counterparty risk
  • Rating agencies

Valuation and Specific Risk Models and Concepts

  • Risk management strategies
  • Value at risk (history, foundations, methods and models for VaR calculation, simulation procedures, backtesting, limitations)
  • Backtesting and value at risk accuracy
  • Ratings (corporate and sovereign ratings, scoring models, portfolio risk)
  • Stress testing and scenario analysis

An Advanced Understanding of Financial Risk Management

This 3-day course is ideally suited for an in-depth overview on financial risk management and recommends participants to have some prior knowledge in risk management. Ideally, participants are interested in refreshing and/or further developing their knowledge in risk management and/or have attended our course “The Basics of Financial Risk Management”.

Learning Objectives
This course discusses most important concepts and methods to understand and measure financial risk.
The course starts with the measurement and management of market risk and credit risk on the single claim as well as on the portfolio level.
In the following, financial investments are related to risk management including also complex structures and portfolios.
The final part of the course discusses current issues and topics in modern risk management.

Key Concepts

The Foundations of Risk Management

  • Why is risk management needed?
  • Investors and risk management
  • Capital asset pricing model vs. arbitrage pricing theory
  • Performance measures and measurement
  • Potential failures in risk management

Financial Markets and Financial Products

  • Foreign exchange risk
  • Forwards & futures in a “risk neutral” – world
  • The “basis” and hedge ratio
  • Options (boundaries, american vs. european, put-call parity, strategies, pricing and risk)
  • Demand and supply of options
  • Counterparty risk
  • Rating agencies

Valuation and Specific Risk Models and Concepts

  • Risk management strategies
  • Value at risk (history, foundations, methods and models for VaR calculation, simulation procedures, backtesting, limitations)
  • Backtesting and value at risk accuracy
  • Ratings (corporate and sovereign ratings, scoring models, portfolio risk)
  • Stress testing and scenario analysis

Get in touch with GBS FRM Program Management should you be interested in a customized corporate solution or register for one of the open courses.

Find more details about GBS FRM programs under: www.goethe-business-school.de/frm

 

CONTACT

Elisabeth Takkenberg

Senior Manager -
 Recruiting & Admissions

+49 69 798 335 09
FRM@gbs.uni-frankfurt.de

Goethe Business School

Key Fact Sheet (PDF) about the programme "Financial Risk Manager"