Certificate Course in Market Risk Management (CCMRM)

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Duration: 60 Days

Fees: US$70

Video Lectures

Presentations & Reading Materials

Multiple Choice Question Answers

Case studies

Certificate Course

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Financial Risk is the prospect of financial loss or gain due to unforeseen changes in underlying risk factors. The field of risk management has undergone an enormous change in the past few years and the pace of change is accelerating. One factor behind the rapid development of risk management was the high level of instability in the economic environment within which firms operated. A volatile environment exposes firms to greater financial risk, and therefore provides an incentive for firms to find new and better ways of managing this risk.

Managing financial risks is all about understanding how to reduce a complex business environment to workable concepts and models. CARE Advisory Research and Training course on market risk management provide the tools for dealing with market risk. This online course on Market Risk Management offers a practical guide to the triad of identifying, quantifying, and managing market risks. These three fundamental elements of the risk-control process have not previously received the attention they deserve.

The online course on Market Risk Management is divided in seven parts:

  • Conceptual introduction to market risk. It introduces the various assets held by a bank in its trading book and the valuation norms for these assets.
  • Sources of market risk such as market volatility, interest rate risk, equity risk, commodity risk, foreign currency risk, and settlement risk.
  • Interest rate risk is discussed in detail in the course. Here we cover the various aspects of interest rate risks, sources of interest rate risk and the effects of interest rate risk, the measurement of interest rate risk by using the maturity gap model and the duration gap model.
  • Forms of foreign currency risk exposures, Policies for Currency Risk Management, the norms for capital and provisioning requirements for forex exposures, and the risk exposure limits for currency risk management;
  • Value at risk: the concept of VaR, its applications and extensions and the measurement of value at risk.
  • Stress testing is an integral part of the course. In this part we discuss the various approaches to stress testing: scenario analysis and stressing models and the implementation of stress testing.
  • Regulatory guidelines.