FRM Part 1 - Book 1 - Foundations of Risk Management

About this course

In this comprehensive course, Prof. James Forjan, PhD, with his extensive experience of over 25 years in teaching college-level business classes, delves into the intricate world of risk management. His expertise brings a unique and insightful perspective to each chapter of the "Foundations of Risk Management" book, making it an invaluable resource for those preparing for the FRM Part 1 exam. The course is meticulously designed to cover all critical aspects of risk management, ensuring a thorough understanding of the subject.The chapters in this course encompass a wide range of topics. Starting with the basic building blocks of risk management, it lays a solid foundation for understanding complex risk management concepts. It then progresses to explore how firms handle financial risks and the governance structures that guide these processes. Credit risk transfer mechanisms are dissected to understand their role in risk management.A significant focus is on Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM), which are pivotal in understanding market behaviors and investment strategies. The course also delves into the Arbitrage Pricing Theory and Multifactor Models, providing a nuanced view of risk and return. Additionally, it covers the vital aspects of risk data aggregation and reporting principles, which are crucial for effective risk management in organizations.Enterprise Risk Management and future trends in risk management are explored, offering insights into the evolving nature of the field. The course also includes a critical analysis of financial disasters, providing lessons that can be learned from past mistakes. It concludes with an in-depth look at the Great Financial Crisis of 2007-2009, offering a detailed examination of its causes and effects.Moreover, the course incorporates the GARP Code of Conduct, ensuring that students not only learn the technical aspects of risk management but also understand the ethical considerations and professional standards

Course objectives

• provide a thorough foundation in risk management concepts
• prepare students for the FRM Part 1 exam
• foster an understanding of ethical considerations in finance