FRM Level I: Foundations of Risk Management
The first course of the FRM Level I series and 20% of the exam. Build the vocabulary and machinery every later topic assumes: what risk is and how taking it differs from managing it, expected versus unexpected loss, the risk classes and how they interact, how a firm retains or transfers an exposure, how a board actually governs risk, credit risk transfer through derivatives and securitization, Modern Portfolio Theory and the CAPM, risk-adjusted performance measurement end to end, the Arbitrage Pricing Theory and multifactor models, BCBS 239 risk-data aggregation, enterprise risk management, and what nine categories of financial disasters, spanning fifteen named cases, and the 2007-2009 crisis teach about the controls that were missing. All eleven official 2026 GARP readings, taught on one institution so the loan book you classify in Chapter 1 is the book you securitize in Chapter 3 and the report that misstates it in Chapter 6. Problem-first hand solutions with BA II Plus keystrokes throughout and Python only to confirm. Closes with a timed practice exam of standalone four-option questions at the real exam's 2.4 minutes per question.
- Level: intermediate
- Duration: 3 weeks
- 9 sections
- Price: $29.99
Topics: risk management, risk taking, expected loss, unexpected loss, economic capital, risk classes, market risk, credit risk, liquidity risk, operational risk, risk aggregation, risk appetite, hedging, risk limits, risk governance, board of directors, chief risk officer, credit risk transfer, credit derivatives, securitization, modern portfolio theory, efficient frontier, capital asset pricing model, capital market line, security market line, beta, Sharpe ratio, Treynor ratio, Jensen's alpha, tracking error, information ratio, Sortino ratio, arbitrage pricing theory, multifactor models, BCBS 239, risk data aggregation, risk reporting, enterprise risk management, financial disasters, global financial crisis, GARP Code of Conduct, FRM, FRM Level I, FRM Part I
What's inside
- FRM Level I: Foundations of Risk Management
- Chapter 1: The Building Blocks of Risk Management
- Chapter 2: Managing Financial Risk and the Governance of Risk Management
- Chapter 3: Credit Risk Transfer Mechanisms
- Chapter 4: Modern Portfolio Theory, the CAPM and Risk-Adjusted Performance
- Chapter 5: The Arbitrage Pricing Theory and Multifactor Models
- Chapter 6: Risk Data Aggregation, Risk Reporting and Enterprise Risk Management
- Chapter 7: Financial Disasters, the 2007-2009 Crisis and the GARP Code of Conduct
- Chapter 8: Foundations Practice Exam