Financial Risk Management - I (FRM)

Financial risks are of particularly great importance for day-to-day banking. The financial risk refers to the risk of a business’ cash flows not being sufficient to pay banking loans and fulfil other financial responsibilities. The level of financial risk, therefore, relates less to the business’ operations themselves and more to the amount of debt a business incurs to finance those operations. The Financial Risk Manager (FRM®) designation is the globally recognised standard for those who manage risk. During this exam training you will gain knowledge of the fundamental risks for banking institutions, government regulators, investment funds, consulting firms and financial services institutions around the world in their day-to-day operations. This course prepares you for FRM Part I.

Target group

This training has been developed for risk managers, business analysts, accountants, central bank auditors, internal auditors and treasury consultants.

Preliminary training

A level of Higher professional education (HBO) is required.

Course materials

NIBE-SVV is the number one financial trainer in the banking, insurance and security sectors and sets the standard for the market. This guarantees you the highest quality by far.

You will use the latest literature and obtain access to a modern online learning environment. This online learning environment includes all information you will need for your training.

GARP also has an online platform and offers a studybook. You have to order their course materials yourself at www.garp.org These costs (approximately 250 US dollars, plus shipping) are not included in the costs of this training. Please take into account a delivery time of approximately 6 weeks. Please note the GARP conditions: You have 9 months after your paid registration with GARP to complete the Financial Risk and Regulation program and participate in the exam. We recommend that you register with GARP only after you have received confirmation from NIBE-SVV with the definitive start date of your training.

Goal and structure

The training prepares you for the high level of risk management used in the banking business. The training consists of 7 topics with a mock exam. During this training you will gain knowledge of the fundamental risks for banking institutions, government regulators, investment funds, consulting firms and financial services institutions around the world in their day-to-day operations. This interesting exam training is taught by highly experienced and professionally active lecturers. The lessons are practically oriented, highly accessible and provide excellent preparation for the final modular assignment. Via the modern online learning environment, you can ask your tutor or fellow students questions about assignments and exercises.

Study load and duration

The training consists of 2 meetings. Readings and assignments approximately take 19 hours a week.

Study programme

The training addresses the following topics:

Banking and financial markets

• Business model of banks
• Risk versus return
• Financial markets

The management of basic risk types

• Liquidity, solvency, leverage
• Other sources of risk
• The risk management process

Quantitative analysis I

• Likelihood and probability
• Distributions
• Hypothesis testing

Quantitative analysis II

• Linear regression with single and multiple regressors
• Simulation
• Monte Carlo Methods

Derivatives modelling

• Mechanics of OTC and exchange markets
• Derivatives on fixed income securities, interest rates, foreign exchange, and equities
• Commodity derivatives

Expected and unexpected losses

• Modeling credit risk
• Rating methodology
• Basel III applied to credit risk

Value-at-Risk (VaR)

• The bank trading portfolio
• Factors determining market volatility
• Liquidity

Exam and diploma

The examination is held each May and November by GARP. Additional information about the exams and registration forms can be found on the website of GARP: www.garp.org You pay the costs for this exam directly to GARP.

You are permitted to register for both the FRM® Exam Level I and Level II on the same day. Level I will be offered in the morning and Level II in the afternoon. You must pass the FRM Exam Level I in order to register for FRM Exam Level II.

Proof of participation

After actively participating in the meetings you will receive the proof of participation ‘Financial Risk Management - I (FRM)’ from NIBE-SVV.