How Do Firms Manage Financial Risk? (FRM Part 1 2023 - Book 1 - Chapter 2)
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- čas přidán 20. 07. 2024
- For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: analystprep.com/shop/unlimite...
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After completing this reading you should be able to:
- Compare different strategies a firm can use to manage its risk exposures and explain situations in which a firm would want to use each strategy.
- Explain the relationship between risk appetite and a firm’s risk management decisions.
- Evaluate some advantages and disadvantages of hedging risk exposures and explain challenges that can arise when implementing a hedging strategy.
- Apply appropriate methods to hedge operational and financial risks, including pricing, foreign currency
and interest rate risk.
- Assess the impact of risk management tools and instruments, including risk limits and derivatives.
0:00 Introduction
0:14 Learning Objectives
1:13 Theoretical Objections to Risk Management
7:32 Reasons for Risk Management
11:48 Hedging Operations versus Hedging Financial Positions
15:58 Risk Management in Practice
21:06 Mapping the Risks
22:17 Instruments for Risk Management
25:53 Devising and Implementing a Strategy
29:12 Performance Evaluation
31:05 Book 1 - Foundations of Risk Management
Thanks for this work.Has greatly helped me
You're so welcome!
Hı Thank you for perfect videos. However, I have not made decision yet as to which exam I should take FRM or PRM ? I would like to work in risk management field in multinational banks. Which certificated would be good option for me in the future? Thanks you su much in advance.
Hi! some chapters are not on youtube, right? please advise where can complete set can be found) thank you
Hi. All video lessons can be found at app.analystprep.com in AnalystPrep's Learn + Practice Package. I hope this helps!
links are not working.
How does hedging increase the debt capacity of the firm?
Hedging makes your risk lower and cashflows more steady, hence enhances the firm’s ability to issue debt (investors accept lower interest given lower risk).
Is there chapter 3?
prm?