Professional Risk Manager (PRM) Certification: Level 3

EduPristine's PRM Training will help you "Build an Awesome Career in Risk Management"
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Instructed by EduPristine Inc Business / Finance
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  • Lectures 22
  • Contents Video: 12.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
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About This Course

Published 7/2013 English

Course Description

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:

  • Modern Risk Management Practices: Capital Allocation & RAPM
  • Market Risk: Advanced VAR, Stress & Scenario Testing, Liquidity Risk Management etc.
  • Credit Risk: Credit Exposure & Migration, Portfolio Models of Credit Loss, Credit Risk Capital Calculation etc.
  • Operational Risk: Risk Frameworks, Risk Process Models, VAR, Enterprise Information Risk, Systematic Risk etc.

Professional Recognition & Job Satisfaction

  • A PRM Charter can improve job opportunities, professional reputation & pay. 
  • Types of Businesses that hire PRMs include: Risk Consultancy Firms, Banks, Insurance Companies, Asset Management, Hedge Funds, Investment Banks etc.

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:

  • 22+ Lectures covering all topics of PRM-III in depth
  • Comprehensive Study Material for easy learning experience
  • 150 Topic wise quiz questions with explanatory answers
  • 2 Mock Tests
  • 24x7 Access to Discussion Forums to interact with faculty & fellow students 
  • One-to-one doubt clearing session for all participants
  • Comprehensive reading material for all topics

Why EduPristine's PRM Training Program??

  • One of the leading International Training Provider for Risk Managament Courses.
  • Get trained by highly proficient Risk Management Experts
  • Indepth Training to make you the best Risk Management Professional in Town
  • Complimentary access to Live Webinars on Risk Management

Website: http://www.edupristine.com/ca/courses/professional-risk-manager/

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Blogs:http://www.edupristine.com/blog/

What are the requirements?

  • The only prerequisite to attempting the PRM exams is membership in PRMIA. Passing all four exams leads to the PRM designation.

What am I going to get from this course?

  • Course Objective is to help participants successfully pass the PRM Exam - III
  • Lucrative career options in Risk Management, Trading, Structuring, Modeling, etc. PRM holders have positions such as Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Director, Investment Risk Management, to name a few.
  • Strong value addition to your skills, credentials and resume
  • Complete coverage of risk management concepts
  • Globally recognized professional certification for banking and finance professionals by PRMIA (Professional Risk Managers' International Association)

What is the target audience?

  • This program is suitable for Bankers, IT professionals, Analytics and Finance professionals with an interest in risk management.
  • It is also beneficial for Btech, MBA, Finance graduates who are interested in financial risk management career.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Introduction PRM-III
03:43

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
53:09

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?” 

This lecture:

·  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
15:04

This lecture gives an introduction to market risk. 

This lecture:

·  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
53:10

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
48:50

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)

17:11

This lecture gives an overview of stress tests and their usefulness. 

This lecture:

·  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

01:02:49

This lecture explains some of the fundamental tools and methodologies involved in identification, management and reporting of the components of Liquidity Risk. 

This lecture:

·  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

33:24

This lecture discusses guidelines and recommendations for an effective and firm-wide stress, and scenario testing. 

This lecture:

·  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
15:51

This lecture gives an introduction to credit risk management.

This lecture:

·  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

40:36

This lecture explains components of a credit loss: the exposure, the default probability and loss given default. 

This lecture:

·  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

32:05

This lecture explains standard loans, and exposure amount. 

This lecture:

·  Defines Pre-settlement Risk, and Settlement Risk

·  Demonstrates Exposure Profiles of Standard Debt Obligations, and Exposure Profiles of Derivatives

·  Explains Mitigation of Exposures

53:52

This lecture talks about default probability, relationship between credit ratings and credit spreads. 

This lecture:

·  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

             
24:35

Lectures(13-15) explains modeling of credit risk in a portfolio and estimating credit VaR. 

These lectures:

·  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
34:51
Portfolio Models of Credit Loss _Part_III
22:32
01:19:24

This lecture talks about credit VaR models to examine credit risk capital.

This lecture:

·  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
33:30

This lecture gives an introduction to credit risk management. 

This lecture:

·  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

44:04

This lecture talks about operational risk process models. 

This lecture:

·  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

30:53

This lecture talks about capital buffers for operational risks and discusses aggregation of operational risk over all business lines and event types. 

This lecture:

·  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)

18:08

This lecture discusses about the importance of timely risk management decisions. 

This lecture:

·  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

11:10

This lecture talks about factors inherent in the financial crisis of 2007-09 and identify some of the causes and suggestions for remedial actions. 

This lecture:

·  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
Conclusion PRM-III
11:32
Section 7: PRM-III : QUIZ
PRM-III : QUIZ
25 questions

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Instructor Biography

EduPristine Inc, Leading International Finance Training Provider

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.

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