FRM Part I Exam Preparation
Prepare for Part I of the Financial Risk Manager (FRM) exam set by GARP.
About this course
Prepare for Part I of the Financial Risk Manager (FRM) exam set by GARP. Across ten days you will work through the four Part I areas: foundations of risk management, quantitative analysis, financial markets and products, and valuation and risk models.
Each topic combines clear explanation with worked calculations and exam-style questions, and the final sessions focus on timed practice and study planning. Exam registration and fees are separate and paid directly to GARP; on completion you receive an Alalamia certificate of attendance.
What you'll learn
- Explain the foundations of risk management, governance and the role of the risk function
- Apply probability, statistics, regression and time series techniques to financial data
- Describe the structure and mechanics of financial markets and derivative products
- Value bonds, options and other instruments and measure their sensitivities
- Calculate and interpret value at risk and related risk measures
- Practise exam-style questions under timed conditions
Curriculum
- Basic risk types, measurement and management tools
- Corporate risk governance and the risk function
- Credit risk transfer mechanisms
- The capital asset pricing model and risk-adjusted performance
- Lessons from financial disasters
- GARP Code of Conduct
- Fundamentals of probability
- Random variables and common distributions
- Multivariate random variables
- Sample moments and hypothesis testing
- Linear regression with one and multiple regressors
- Regression diagnostics
- Stationary and non-stationary time series
- Measuring returns, volatility and correlation
- Simulation and bootstrapping
- Banks, insurance companies, fund managers and central counterparties
- Introduction to derivatives and exchanges
- Over-the-counter markets and clearing
- Foreign exchange and interest rate markets
- Futures and forwards: pricing and hedging
- Interest rate futures and swaps
- Options: properties, strategies and exotic options
- Commodity forwards and futures
- Mortgages and mortgage-backed securities
- Measures of financial risk
- Value at risk and expected shortfall
- Stress testing
- Calculating and applying VaR
- Prices, discount factors and arbitrage
- Spot, forward and par rates
- Duration, convexity and key rate sensitivities
- Binomial trees and the Black-Scholes-Merton model
- Option sensitivity measures: the Greeks
- Credit ratings and internal rating systems
- Country risk
- Measuring credit risk
- Operational risk overview
- Exam format and question styles
- Use of the approved calculator
- Timed practice papers and review
- Study planning for the remaining weeks
Who it's for
Finance, banking and risk professionals preparing to sit FRM Part I.
Before you start
- A good grounding in mathematics, statistics and finance is recommended
Prepares for
Part of these Alalamia diplomas
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