Certificate in Financial Risk Management (CFRM)

Program Overview

Financial institutions and corporates face market, credit, liquidity and interest rate risks that can quickly erode capital and earnings. This programme provides a rigorous, practical grounding in identifying, measuring and managing these risks. Participants learn Value at Risk and expected shortfall, credit risk measurement using probability of default, loss given default and exposure at default, expected credit loss under IFRS 9, liquidity metrics such as LCR and NSFR under Basel III, interest rate risk in the banking book, hedging with derivatives and stress testing. Gulf context includes concentration risk, oil price sensitivity, currency pegs and central bank supervisory expectations for risk governance.

Learning Outcomes

• ✓Calculate Value at Risk using historical and parametric methods and interpret its limitations.
• ✓Estimate expected credit loss for a loan or receivables portfolio using PD, LGD and EAD inputs.
• ✓Compute and interpret LCR and NSFR for a simplified bank balance sheet.
• ✓Measure interest rate risk using repricing gap and duration analysis.
• ✓Design a hedging strategy for currency, interest rate or commodity exposure using derivatives.
• ✓Develop stress scenarios reflecting oil price and regional shocks and assess their capital impact.

Target Audience

• Risk managers and analysts in banks and financial institutions
• Treasury and asset-liability management staff
• Credit risk and portfolio managers
• Corporate treasurers and finance managers exposed to market risk

Detailed Program Modules

Training Methodology

Applied Project & Assessment