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Learning Objectives: Explain best practices recommended by the Basel committee for the assessment, management, mitigation, and monitoring of money laundering and financing of terrorism (ML/FT) risks. Describe recommended practices for the acceptance, verification, and identification of customers...

Liquidity & Treasury Risk Measurement and Management LTR-2: Malz, Chapter 12: Liquidity and Leverage New PQs posted to the forum and interactive quiz platform 09/05/24 P2.T8.24.1 P2.T8.24.2 P2.T8.24.3

Learning Objectives: Calculate the expected transactions cost and the spread risk factor for a transaction and calculate the liquidity adjustment to VaR for a position to be liquidated over a number of trading days. Discuss interactions between different types of liquidity risk and explain how...

Learning Objectives: Describe the relationship between leverage and a firm’s return profile (including the leverage effect) and distinguish the impact of different types of transactions on a firm’s leverage and balance sheet. Distinguish methods to measure and manage funding liquidity risk and...

Learning Objectives: Differentiate between sources of liquidity risk and describe specific challenges faced by different types of financial institutions in managing liquidity risk. Summarize the asset-liability management process at a fractional reserve bank, including the process of liquidity...

Learning Objectives: Describe how correlation impacts the price of quanto options as well as other multi-asset exotic options. Describe the structure, uses, and payoffs of a correlation swap. Estimate the impact of different correlations between assets in the trading book on the VaR capital...

Foundations of Risk Management FRM-5: Chapter 5: Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM) Updated Learning Spreadsheets published 08/29/24 (2 XLS) FRM-6 Chapter 6 APT and Multifactor Models of Risk and Return Updated Learning Spreadsheet published 08/29/24...

Learning Objectives: Explain regulatory initiatives for the OTC derivatives market and their impact on central clearing. Compare margin requirements in centrally cleared and bilateral markets and explain how margin can mitigate risk. Compare netting in bilateral markets vs centrally cleared...

@TEkaz8632 Thank you for pointing this out. I've moved your post from the Practice Question section to this error thread, which is where all errors in study notes, PPTs, and videos should be noted. The correct link for the spreadsheet will be updated in the next revision in Vital Source. Here is...

Learning Objectives: Describe the implementation of a margining process and explain the determinants of and calculate initial and variation margin requirements. Describe the process of buying stock on margin without using CCP and calculate margin requirements. Describe the role of...

Learning Objectives: Describe arbitrageurs' strategy and calculate an arbitrage payoff. Describe some of the risks that can arise from the use of derivatives. Questions: 24.2.1. A trader at AI Train a high-frequency trading hedge fund, is seeking to exploit mispricing on the statistical...

Learning Objectives: Explain the concept of net asset value (NAV) of an open-end mutual fund and how it relates to share price. Explain the key differences between hedge funds and mutual funds. Calculate the return on a hedge fund investment and explain the incentive fee structure of a hedge...

We hope that everyone did well on the FRM Part 2 exam! We would love to hear your feedback about it. How did the exam go? Did you encounter unexpected questions? Thank you in advance for any feedback you can provide! Don't forget to fill out the poll at the top of this post :)

We hope that everyone did well on the FRM Part 1 exam! We would love to hear your feedback about it. How did the exam go? Did you encounter unexpected questions? Thank you in advance for any feedback you can provide! Don't forget to fill out the poll at the top of this post :)

Valuation & Risk Models VRM-4 Chapter 4: External and Internal Credit Ratings Practice Question PDF updated 08/08/24 VRM-6 Chapter 6: Measuring Credit Risk Practice Question PDF updated 08/08/24 VRM-7 Chapter 7: Operational Risk Practice Question PDF updated 08/08/24 VRM-8 Chapter 8...

Foundations of Risk Management FRM-7: Chapter 7: Risk Data Aggregation/Reporting Principles New PQs added to forum & Quiz Platform 08/07/24 P1.T1.24.1. FRM-8 Chapter 8 Enterprise Risk Management and Future Trends New PQs added to forum and Quiz Platform 08/07/24 P1.T1.24.2

Learning Objectives: Describe the motivations for a firm to adopt an ERM initiative. Explain the role of scenario analysis in the implementation of an ERM program and describe its advantages and disadvantages. Explain the use of scenario analysis in stress testing programs and in capital...

Valuation & Risk Models VRM-8 Chapter 8 Stress Testing New PQs added to forum: P1.T4.24.19: 07/31/24 P1.T4.24.20: 07/31/24 New PQs added to Quiz Platform 08/06/24

Learning Objectives: Explain challenges to the implementation of a strong risk data aggregation and reporting process and the potential impacts of using poor quality data. Describe characteristics of effective data architecture, IT infrastructure, and risk reporting practices. Questions...

@sandeepfrm I've moved your post to this thread, which explains our publishing process and why some chapters may not have videos published. Please review the original post here for an explanation. The two videos you mentioned do not currently have videos published. Thank you.