BASEL readings

[shanlane]

I was looking through some of the free readings from the GARP website. One of them was a 350 page document. Are we really supposed to read the entire thing? Then there is another 120 page document on modelling risk aggregation.

I know this is supposed to be an intense exam but that seems a bit excessive.

Thanks,
Shannon

 

[David Harper CFA FRM]

Hi Shanlane,

Agreed, it's excessive. And, no, you of course do not need to know all of Basel II/III. If you look at the AIMs, I think you'll see that it's more like a "first layer" understanding. I guess my view is Basel is both wide (i.e., a capital ratio, 3 big risk buckets + some add on stuff due to the crisis like liquidity ratio) and deep (e.g., a lot of the 350 document is detailed rules attached to a more basic rule). As a general rule, grasping the width is better and easier. The FRM tends to go deeper only where indicated in the AIMs. Thanks, David

 

[shanlane]

Thank you. And now for the second part of my question: are there any particular sections of the document that we can completely skip?

Shannon

 

[David Harper CFA FRM]

Hi Shannon,

I don't have a glib answer (rather, i have many thoughts). Since I am working hard on the 2012 content, can I try to incorporate a slide in the appropriate video, rather than spend the time to itemize here? (i will bookmark this) Thanks, David

 

[shanlane]

Great!!

Thanks,
Shannon