Professional Risk Manager (PRM) Certification: Level 3
course's star rating by considering a number of different factors
such as the number of ratings, the age of ratings, and the
likelihood of fraudulent ratings.
Find online courses made by experts from around the world.
Take your courses with you and learn anywhere, anytime.
Learn and practice real-world skills and achieve your goals.
Why Professional Risk Manager?
If you are looking for a lucrative finance career in Risk Consultancy Firms, Banks, Insurance companies, Asset Management, Hedge funds, Investment banks etc., then PRM (Professional Risk Manager) is the right catch for you.
PRM is a professional designation awarded by the PRMIA to Professional Risk Managers (PRM) who passes their four online exams.
PRM-III Curriculum focuses on providing knowledge and understanding of:
Professional Recognition & Job Satisfaction
How to update your CV with Professional Risk Management Skills?
After qualifying Professional Risk Manager Exam, you can add heavy duty terms in your resume like "Risk Management", "Basel-I, II, III", "Interest Rate Risk ", "Risk Metrics", “Financial Econometrics” etc, which will surely diversify your professional reach.
EduPristine's PRM Training Program- Unique Offerings:
Why EduPristine's PRM Training Program??
Not for you? No problem.
30 day money back guarantee.
Learn on the go.
Desktop, iOS and Android.
Certificate of completion.
|Section 1: Introduction PRM-III|
This is the introductory video for PRM-III which talks about the topics covered under this course.
These topics are as follows:
· Risk Management Practices
· Market Risk
· Credit Risk
· Operational Risk
|Section 2: Risk Management Practices|
This lecture gives an overview of the most important question, “How much Capital is enough to withstand unusual losses in each three areas of risk?”
· Describes the Role of Capital in a Financial Institution and the different types of capital
· Describes the different approaches to calculating Economic Capital and Regulatory Capital
· Explains the Basel Norms, the Derivation of Regulatory Capital and Capital Allocation
· Demonstrates the Risk Contribution Methodologies for Economic Capital Allocation and Risk Adjusted Return On Capital (RAROC)
· Explains Risk Adjusted Performance Measurement (RAPM)
|Section 3: Market Risk|
This lecture gives an introduction to market risk.
· Explains Market Risk and the importance of market risk
· Differentiates Market Risk from other risks
· Describes the Market Risk Management Tasks and the organization of Market Risk Management. Explains Market Risk Management in Fund Management, in Banking and in Non-financial firms
This lecture gives an overview of how to measure risk with value-at-risk (VaR). This lecture:
· Defines Value-at-Risk VaR
· Discusses Internal Models for Market Risk Capital
· Explains Monte Carlo Simulation VaR model and Historical Simulation VaR model
· Describe Risk Factor Mapping, Mapping Spot Positions, Mapping Equity Positions, Mapping Zero-Coupon Bonds, Mapping Forward/Futures Positions and Mapping Complex Positions
· Describes Backtesting of VaR models. Explain Central Limit Theorem and non-normality of financial markets
This lecture covers Advanced Value at Risk models. This lecture:
· Discusses the issues related to the three VaR models
· Demonstrates Standard Distributional Assumptions, Volatility Clustering Models and impact of Volatility Clustering on VaR
· Discuss GARCH model
· Explains VaR with the Student’s t distribution, with Extreme Value Theory and with Normal Mixtures
. Demonstrates Incremental VaR (IVaR), Component
VaR (CVaR) and Principal Component Analysis (PCA)
This lecture gives an overview of stress tests and their usefulness.
· Explains Stress Testing: the historical and conceptual context of stress testing
· Explains Historical Scenarios Approaches, Hypothetical Scenarios Approaches, and Algorithmic Approaches
· Describes Extreme Value Theory as a Stress-Testing Method
This lecture explains some of the fundamental tools and methodologies involved in identification, management and reporting of the components of Liquidity Risk.
· Describes the factors which determine liquidity risks, and their pricing considerations
· Identifies the processes concerning collateral management
· Discusses the implications of managing liquidity across business lines, legal entities, and currencies
· Identifies and differentiates the early warning signs of compromised liquidity
· Identifies the requirements of Stress Testing and a liquidity buffer
· Describes the essential components of market, and funding, liquidity risk
· Discusses the impacts of counterparty / credit risk on liquidity relative to speads, defaults, credit enhancements, and asset based enhancements
· Describes the impact of behaviour on liquidity with respect to drawings, repayments, prepayments and draw-downs
· Derives the impact of insurance risk on liquidity
This lecture discusses guidelines and recommendations for an effective and firm-wide stress, and scenario testing.
· Explains the need for, conditions governing, and outcomes of the Supervisory Capital Assessment Program (SCAP), SCAP capital buffer
· Shows the calculation of additional capital to build a SCAP buffer
· Describes the components of the FSA proposed changes to reverse stress testing
· Describes the clarifications to Pillar I and II proposed by the FSA
· Explains the findings of the BCBS relative to the performance of stress testing during the crisis
· Describes the 15 recommendations made to banks made by the BCBS
· Describes the 6 recommendations made to supervisors by the BCBS
|Section 4: Credit Risk|
This lecture gives an introduction to credit risk management.
· Describes the responsibilities of a credit risk manager
· Describes the Review of Strategic Credit Positions, Credit Limits and Provisions
· Explains Credit Exposure Measurement Issues, and Credit Risk Reporting
· Describes Stress and Scenario Analysis, Provisioning, Documentation, Credit Protection, and Annual tasks of the credit officer
This lecture explains components of a credit loss: the exposure, the default probability and loss given default.
· Defines Default Risk, Exposure, Default and Recovery Processes
· Explains the Credit Loss Distribution, Expected and Unexpected Loss
· Describes Recovery Rates, the use of beta distribution in credit risk modeling
This lecture explains standard loans, and exposure amount.
· Defines Pre-settlement Risk, and Settlement Risk
· Demonstrates Exposure Profiles of Standard Debt Obligations, and Exposure Profiles of Derivatives
· Explains Mitigation of Exposures
This lecture talks about default probability, relationship between credit ratings and credit spreads.
· Defines and Discusses Default Probabilities and Term Structures of Default Rates
· Discusses Credit Ratings, and Measurement of Rating Accuracy
· Describes the Methodology of Credit Rating followed by Rating Agencies
· Demonstrates Transition Matrices, Default Probabilities and Credit Migration as done by Rating Agencies
· Explains Credit Scoring and the Estimation of the Probability of Default
· Demonstrates Market-Implied Default Probabilities
· Explains Credit Rating and Credit Spreads
Lectures(13-15) explains modeling of credit risk in a portfolio and estimating credit VaR.
· Explains Default, new approaches to Credit Risk Modelling, Credit VaR and Credit Migration
· Describes the Credit Metrics Framework, Credit VaR for a single Bond/Loan
· Demonstrates the Estimation of Default and Rating Changes Correlations
· Explains the Conditional Transition Probabilities – CreditPortfolioView Model
· Explains the idea of contingent claim approach in credit risk measurement
· Demonstrates Structural Model of Default Risk: Merton’s (1974) Model
· Demonstrates Estimation of Credit Risk as a function of Equity Value, the KMV approach and the Actuarial Approach
Portfolio Models of Credit Loss _Part_II
Portfolio Models of Credit Loss _Part_III
This lecture talks about credit VaR models to examine credit risk capital.
· Explains the calculation of Economic Credit Capital using Credit Portfolio Models
· Demonstrates Minimum Credit Capital Requirements under Basel I
· Lists the Weaknesses of the Basel I Accord for Credit Risk
· Explains the Latest proposal for Minimum Credit Capital requirements
· Explains the Standardised Approach in Basel II
· Describes the Internal Ratings Based Approach (IRB) for Corporate, Bank and Sovereign Exposures, Retail Exposures, SME Exposures and Specialised Lending and Equity Exposures
· Lists the new components of Pillar II for credit risk
· Explains Credit Model Estimation and Validation in Basel II
· Describes the application of credit risk contribution methodologies for Economic Credit Capital Allocation
· Demonstrates the Shortcomings of VaR for Economic Credit Capital and Coherent Risk Measures
|Section 5: Operational Risk|
This lecture gives an introduction to credit risk management.
· Lists the emerging Operational Risks in Banks
· Discusses main types of losses that occurred in practice
· Explains Operational Risk, Operational Risk Advanced Measurement Approach (AMA) Framework
· Lists the objectives of an operational risk management function
· Describes the scope of an operational risk management function, the Key components of Operational Risk, and the Supervisory Guidance on Operational Risk
· Explains the Risk Catalogue
· Explains the Operational Risk Assessment Process and the Operational Risk Control Process
This lecture talks about operational risk process models.
· Explains the relevance of Operational Risk Management (ORM)
· Describes how to develop and apply operational risk models and various ORM tools
· Describes the Top-down models, the Bottom-up models
· Describes the Key Attributes of the ORM Framework and the Integrated Economic Capital Model
· States the objectives of an ORM programme
· Explains Risk Transfer and the IT Outsourcing case study
This lecture talks about capital buffers for operational risks and discusses aggregation of operational risk over all business lines and event types.
· Explains the Loss Model Approach, the Frequency Distribution, and the Severity Distribution
· Demonstrates the Internal Measurement Approach
· Explains the Loss Distribution Approach
· Demonstrates Aggregating Operational Risk Capital (ORC)
This lecture discusses about the importance of timely risk management decisions.
· Describes the dangers and risks inherent in risk models, transparency, and risk monitoring, of having poor risk information
· Explains some of the causes of poor data
· Demonstrates an understanding of the 8 criteria, and priorities for analyzing data
· Describes the components of a Data Management Framework, and a Logical Data Model
· Discusses the Critical Success Factors of implementing a Risk Information Management Environment
This lecture talks about factors inherent in the financial crisis of 2007-09 and identify some of the causes and suggestions for remedial actions.
· Discusses the concept of “zero-sum” relative to financial instruments, and risk engineering.
· Discusses the function of the intermediaries of the financial system
· Explains the importance of the balance of the component parts of the financial services industry
· Discusses the role played by government in financial crisis
· Discusses how infusions of cash into the monetary system stopped the system from seizing up
· Demonstrates how limited memories, and disaster myopia, were prevalent in the “Golden Decade”
· Discusses the apparent role conflicts between risk managers and risk takers, and their management, and the regulators
|Section 6: Conclusion PRM-III|
|Section 7: PRM-III : QUIZ|
PRM-III : QUIZ
Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading International Training providers for Finance Certifications like FRM®, CFA®, PRM®, Business Analytics, HR Analytics, Financial Modeling, Operational Risk Modeling etc. It was founded by industry professionals who have worked in the area of investment banking and private equity in organizations such as Goldman Sachs, Crisil - A Standard & Poors Company, Standard Chartered and Accenture. EduPristine has conducted corporate training for various leading corporations and colleges like JP Morgan, Bank of America, Ernst & Young, Accenture, HSBC, IIM C, NUS Singapore etc. EduPristine has conducted more than 500,000 man-hours of quality training in finance.