Certified Financial Risk

Management Professional
VS-1132
Certified Financial Risk Management Professional
www.vskills.in


C CC Certified ertified ertified ertified Financial Risk M Financial Risk M Financial Risk M Financial Risk Management anagement anagement anagement
Professional Professional Professional Professional
Certification Code Certification Code Certification Code Certification Code VS-1132
Vskills certification for Financial Risk Management Professional assesses the candidate as
per the companys need for financial risk management !he certification tests the
candidates on "ario#s areas in classifying risk$ risk meas#rement$ risk management$ %#ll
spreads$ delta ne#tral strategies$ and &asel ''

(hy sho#ld one take this certification) (hy sho#ld one take this certification) (hy sho#ld one take this certification) (hy sho#ld one take this certification)
!his Co#rse is intended for professionals and grad#ates *anting to e+cel in their chosen
areas 't is also *ell s#ited for those *ho are already *orking and *o#ld like to take
certification for f#rther career progression

,arning Vskills Financial Risk Management Professional Certification can help candidate
differentiate in today-s competiti"e .o% market$ %roaden their employment opport#nities %y
displaying their ad"anced skills$ and res#lt in higher earning potential

(ho *ill %enefit from taking this certification) (ho *ill %enefit from taking this certification) (ho *ill %enefit from taking this certification) (ho *ill %enefit from taking this certification)
/o% seekers looking to find employment in finance or risk departments of "ario#s
companies$ st#dents generally *anting to impro"e their skill set and make their CV
stronger and e+isting employees looking for a %etter role can pro"e their employers the
"al#e of their skills thro#gh this certification
!est 0etails !est 0etails !est 0etails !est 0etails
0#ration1 0#ration1 0#ration1 0#ration1 23 min#tes
4o of 5#estions1 4o of 5#estions1 4o of 5#estions1 4o of 5#estions1 63
Ma+im#m marks1 Ma+im#m marks1 Ma+im#m marks1 Ma+im#m marks1 63$ Passing marks1 26 76389
!here is no negati"e marking in this mod#le
Fee Str#ct#re Fee Str#ct#re Fee Str#ct#re Fee Str#ct#re
Rs 3$333:- 7'ncl#des all ta+es9
Companies that hire Vskills Companies that hire Vskills Companies that hire Vskills Companies that hire Vskills Financial Risk Management Prof Financial Risk Management Prof Financial Risk Management Prof Financial Risk Management Professional essional essional essional
Financial Risk Management Professionals are in great demand Companies speciali;ing in
financial cons#lting or risk cons#lting are constantly hiring skilled Financial Risk
Management Professionals Vario#s p#%lic and pri"ate companies also need Financial Risk
Management Professionals for their finance or risk departments




Certified Financial Risk Management Professional
www.vskills.in

!a%le of Contents !a%le of Contents !a%le of Contents !a%le of Contents

1 1 1 1 Risk &asics Risk &asics Risk &asics Risk &asics
1.1 Nature of Risk
1.2 Sources of Risk
1.3 Need for Risk Management
1.4 Benefits of Risk Management
1.5 Risk Policy
1.6 Risk Management Approaches

2 2 2 2 Risk Classification Risk Classification Risk Classification Risk Classification
2.1 Credit Counterparty Risk
2.2 Market Risk
2.3 Operational
2.4 Other Risks

3 3 3 3 Meas#ring Risk Meas#ring Risk Meas#ring Risk Meas#ring Risk
3.1 Measurement of Credit
3.2 Measurement of Market Risk
3.3 Measurement of Interest Rate Risk for
3.4 Asset Liability Management (ALM)
3.5 Measurement of Operational Risk

< < < < Risk Management Risk Management Risk Management Risk Management
4.1 Managing Credit Risk
4.2 Managing Market Risk
4.3 Managing Operational Risk
4.4 Insurance

6 6 6 6 !ools for Risk !ools for Risk !ools for Risk !ools for Risk Management Management Management Management
5.1 Bull Spreads
5.2 Neutral and Volatile Strategies
5.3 Delta Neutral Strategies
5.4 Credit Derivatives
5.5 Credit Ratings

2 2 2 2 =ther 'ss#es in Risk Management =ther 'ss#es in Risk Management =ther 'ss#es in Risk Management =ther 'ss#es in Risk Management
6.1 Regulatory Framework
6.2 The Basel Committee
6.3 Best Practices Report
6.4 Legal Issues
6.5 Accounting Issues
6.6 Tax Issues
6.7 Management Information System (MIS)
Certified Financial Risk Management Professional
www.vskills.in

6.8 Information Technology (IT) and Systems
6.9 Integrated Risk Management

> > > > &asel '' &asel '' &asel '' &asel ''
7.1 Three Pillars of Basel II
7.2 Time Schedule and Scope of Application
7.3 The First Pillar-Minimum Capital Requirements
7.4 The Standardized Approach
7.5 The Internal Ratings Based (IRB) Approach
7.6 Market Risk
7.7 Operational Risk
7.8 The Second Pillar-Supervisory Review Process
7.9 The Third Pillar-Market Discipline

? ? ? ? Case St#dies Case St#dies Case St#dies Case St#dies
8.1 Risk Management Gone Wrong
8.2 Barings
8.3 Orange County
8.4 Herstatt Bank
8.5 Long-Team Capital Management (LTCM)
8.6 Enron

























Certified Financial Risk Management Professional
www.vskills.in

Sample @#estions Sample @#estions Sample @#estions Sample @#estions
1 1 1 1 !raditionally$ corporate risk management considered all of the follo*ing risks !raditionally$ corporate risk management considered all of the follo*ing risks !raditionally$ corporate risk management considered all of the follo*ing risks !raditionally$ corporate risk management considered all of the follo*ing risks
,AC,P! ,AC,P! ,AC,P! ,AC,P!
B Cia%ility risks
& Financial risks
C Property risks
0 Personnel risks

2 22 2 (hich of the follo*ing is most likely to occ#r in a DhardE ins#rance market) (hich of the follo*ing is most likely to occ#r in a DhardE ins#rance market) (hich of the follo*ing is most likely to occ#r in a DhardE ins#rance market) (hich of the follo*ing is most likely to occ#r in a DhardE ins#rance market)
B high ins#rance premi#ms and loose #nder*riting standards
& lo* ins#rance premi#ms and loose #nder*riting standards
C lo* ins#rance premi#ms and tight #nder*riting standards
0 high ins#rance premi#ms and tight #nder*riting standards

3 33 3 B comp#teri;ed data%ase that permits the risk manager to store and analy;e risk B comp#teri;ed data%ase that permits the risk manager to store and analy;e risk B comp#teri;ed data%ase that permits the risk manager to store and analy;e risk B comp#teri;ed data%ase that permits the risk manager to store and analy;e risk
management data is called a management data is called a management data is called a management data is called a
B Risk map
& Risk management intranet
C Risk management soft*are program
0 Risk management information system

< << < B comprehensi"e risk management program that addresses an organi;ations B comprehensi"e risk management program that addresses an organi;ations B comprehensi"e risk management program that addresses an organi;ations B comprehensi"e risk management program that addresses an organi;ations
p#re risks$ spec#lati"e risks$ strategic risks$ and operational risks is called a7n9 p#re risks$ spec#lati"e risks$ strategic risks$ and operational risks is called a7n9 p#re risks$ spec#lati"e risks$ strategic risks$ and operational risks is called a7n9 p#re risks$ spec#lati"e risks$ strategic risks$ and operational risks is called a7n9
B Financial risk management program
& ,nterprise risk management program
C 'ntegrated risk management program
0 0o#%le-trigger option program

6 66 6 !he risk management departments of some companies ha"e de"eloped !he risk management departments of some companies ha"e de"eloped !he risk management departments of some companies ha"e de"eloped !he risk management departments of some companies ha"e de"eloped
interacti"e net*orks incorporating search ca interacti"e net*orks incorporating search ca interacti"e net*orks incorporating search ca interacti"e net*orks incorporating search capa%ilities !hese net*orks are designed pa%ilities !hese net*orks are designed pa%ilities !hese net*orks are designed pa%ilities !hese net*orks are designed
for limited$ internal #se S#ch net*orks are called for limited$ internal #se S#ch net*orks are called for limited$ internal #se S#ch net*orks are called for limited$ internal #se S#ch net*orks are called
B ,nterprise risk management plans
& Risk management intranets
C Risk maps
0 Risk management information systems


Answers: 1 (B), 2 (B), 3 (C), 4 (A), 5 (A)