How hard is financial risk management?

Is FRM Tougher Than CFA? FRM exams are tough, but not as difficult as the CFA exams . For the CFA exams, historical pass rates for Level 1 and Level 2 are generally in the range of 35% to 50%. Level 3 pass rates are usually in the ballpark of 50%.

What is risk management in MBA finance?

Risk management is the process of identifying the potential downsides as well as the potential rewards of an investment . Balancing risk and reward is a crucial process in any investment decision. Risk management strategies include avoidance, retention, sharing, transferring, and loss prevention and reduction.

Is FRM very difficult?

The FRM exam is very quantitative, and the curriculum takes a lot of time to master . More people fail FRM Part I than pass it, and barely half of those who take the FRM Part II exam, pass it. As a result, only 25 percent of those who register for the exam end up passing both parts.

What is the salary of FRM?

The average FRM salary in India per month ranges from Rs. 66,130 – Rs. 77,821 .

Is an MBA good for risk management?

MBA in risk management programs prepare students to handle organizational risk due to unstable markets, fraud, and liability issues . Online MBAs provide a flexible learning format that can strongly benefit students.

Is risk management finance hard?

Life as a risk analyst can be challenging, as risk management is filled with inherently difficult decisions , and risk-related data does not always entail straightforward solutions. Nevertheless, this career offers the opportunity to make a direct impact on an organization's success.

What are the 5 types of risk management?

There are five basic techniques of risk management: Avoidance. Retention. Spreading. Loss Prevention and Reduction. Transfer (through Insurance and Contracts)

Is financial risk management stressful?

Is Risk Management a Stressful Job? Being a Risk Manager in the finance field can be an incredibly stressful job , however, it's a job that will always be needed in the field. At the end of the day, you have to decide for yourself if it's a career you're willing to put the work into.

Is FRM harder than CPA?

In comparing the difficulty of CPA vs FRM exams, the CPA exam boasts more syllabi and tougher exams . CPA exams test a wide range of accounting and finance topics compared to FRM exams, which are restricted to risk management concepts.

Is risk management difficult?

The Challenges of Risk Management. Risk management is a complex process that involves many steps and actions such as identifying, assessing, mitigating, and monitoring risks. However, it does come with some challenges causing it to be vulnerable to failure .

Financial Risk Management MBA Course - Follow Jawwad Online as he teaches Risk in Dubai. (2024)

March 22, 2021June 24, 2012

4 mins read

Financial Risk Management Course for MBA students

I am teaching a short week long course on Financial Risk Management at the SP Jain Campus in Dubai. For the next seven days I will work with 30 MBA students and complete a full review of:

a. Value at Risk

b. Measure translation and transaction exposures

c. Derivative Crash Course

d. Matching products and risk scenarios

e. Asset Liability Management

f. Risk Management practice

The Financial Risk Management Crash Course for MBA students

Session	Topics	Recommended Reading
Financial Risk Workshop – Day One – Introduction	Risk, Volatility, Standard Deviation. What is Risk?A framework for risk management. Tools of the trade. Trailing VolatilityValue at Risk.Calculating Value at Risk. Introductory VaR Exercises with data set.Value at Risk Sheet. Value at Risk Methods	Case: Working with Gold and Oil PricesCase: Hedging Jet Fuel Exposure in the airline industry The Value at Risk Crash CourseCounterparty Limits Movie clip – Margin Call – Boarding Meeting at 4 am.
Financial Risk Workshop – Day Two – Managing and Measuring Exposure	Working with hedging. Understanding and measuring exposure. Testing itApplying Value at RiskOil and Interest Rates- impact on car prices and air line business – Using Gold?	Case: Air CanadaCase: GM Translation and Transaction ExposuresReading material – Measuring Exposure for Petrochemical Companies
Financial Risk Workshop – Day Three – Basic Products and Applications	Derivative Language and terminology crash courseCommon products and applicationsForward, Puts, Calls. Common themes and relationships	Derivative Terminology Crash Course
Financial Risk Workshop – Day Four – Managing Exposure and Target Accounts- Asset Liability Management	Asset Liability Management, Report FormatsInterest Rate and Interest Rate Mismatch risk	Case: The BancOne ALM CaseAsset Liability Management Reference Guide
Financial Risk Workshop – Day Five – More Products & Applications	Advance products and solutions – Interest Rate Swaps, Caps, FloorsAdvance Derivatives Crash CourseExotic products	Derivative Terminology Crash Course
Financial Risk Workshop – Day Six – The LTCM Case Discussion		LTCM Case
Financial Risk Workshop – Day Seven – Review, wrap up, closure	Risk practice in the real worldIssues and problems with Models.A career in risk managementLearning more about Risk and Risk practice	Internal Capital Adequacy Assessment Quant Crash Course

Follow this page as we upload links to each day of classes and assignments below

Financial Risk Course Day One

Day One’s data sheet and homework. The sheet includes historical data series for Jet Fuel, WTI Crude Oil and Gold prices. It calculates historical volatility for Crude Oil as well as does a basic back test using a histogram. Also calculates Value at Risk for a WTI Crude Oil position using multiple confidence level.

FinancialRisk-Price-data-set-Oil-Gold-Fuel Oil

Homework assignment. Repeat the calculations and the numbers for Jet Fuel and Gold. Calculate trailing correlation for Oil & Gold, Jet Fuel and Oil using the framework presented in the Tracking Trailing Correlations for Commodities post.

Financial Risk Workshop Day Two

Introducing Value at Risk, Volatility and Trailing Correlations
The Aviation Fuel Oil Hedging Case Study – Day Two update
FinancialRiskTrainingOnline – Low Res Slide deck
FinancialRiskTrainingCourse-HighRes – High Res Slide deck

Financial Risk Workshop – Day Three & Four

Value at Risk Detailed Step by Step Case Study
Asset Liability Management Detailed Step by Step Case Study
Building Maturity Profile for ALM, Deposits and Advances Analysis

Financial Risk Management MBA Course – Session Transcripts and Podcasts

Derivatives Part 1 (Prof. Jawwad Farid)[ 30:26 ] Download

Final Exam – Practice Test Question and Solved Solution

The Prime Brokerage – Margin Lending – Margin Risk Management Case Study

Also check the new Advance Risk Management Models Course, offered as a second course in the Risk Management series

Updates for both day one and day two have been posted can be seen at the links below.

Update 28 June 2012 : Link to power point slide deck now available
Update 28 July 2012: High res power point slide deck now available. Links to VaR and ALM Case Study now available.
Update 28 September 2012: Final Exam and Solved Solution has been posted below and is now available
Update 2nd August 2012: More transcripts from class sessions uploaded under the new transcript section on this page.

Value at Risk for dummies: 9 simple rules for risk management – the Risk Metrics campaign
Value at Risk EXCEL Guide