...2011 FRM EXAM TRAINING SYLLABUS PART I Introduction to Financial Mathematics 1. Introduction to Financial Calculus a. Variables – Discrete and Continuous b. Univariate and Multivariate Functions – Dependent variable and Independent variable c. Physical representation of a function d. Linear and Non-Linear functions e. Limits of a function f. The number e and Natural Logarithm g. Differential Calculus – Differentiation, Interpretation - Slope of a tangent, using derivatives to calculate function values and deltas. Linear functions - 1st order derivative. Non-linear functions – 1st and higher order derivatives, interpretations and usage. Rules of derivatives. h. Functions – Differentiation and Taylor Series Expansion i. Introduction to Partial Derivatives j. Introduction to Integral Calculus 2. Introduction to Bond Mathematics a. Finance and the Time Value of Money b. Concept of Zero Coupon (Discount) Bonds and Coupon Bonds. c. Bond Characteristics d. Bond Types – Fixed Rate, Floating Rate, Inverse Floater Rate, etc. e. Interest Rates – Discrete and Continuous Compounding f. Bond Pricing – using ZCYC or YTMC with discrete compounding or continuous compounding g. Difference between bond coupon rate and bond yield h. Calculating Bond Yield (YTM, CY, MMY, ZCY/Spot, Par Yield, etc.) i. Price Yield Relationship Introduction to Financial Statistics and Econometrics 1. Introduction to Financial Statistics a. Frequency distributions b. Measures of Central Tendency/Location (Mean/Mode/Median)...
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...Module 1 Introduction to financial risk management (FRM) Financial Risk Management Module 1 Introduction to financial risk management Question 1 In 2009 which organisation posted the biggest corporate loss in US history and in the same month announced staff bonuses in excess of USD 450 million? a. b. c. d. American International Group (AIG). Lehman Brothers. General Motors. Merrill Lynch. Question 2 The Gig, an Australian heavy metal band, has decided to let its fans invest in the music industry and guaranteed that for every $100 invested in The Gig Music Fund they will get a monthly dividend of $12.00. After six months $20 million has been invested and the depositors have all received $12.00 a month. A spokesman announced that the band needs to raise an additional $5 million to fund a new album and offers music lovers $15 per month for every new $100 invested. Your parents are aware you are completing a financial risk management course and ask your advice as to whether or not to invest. You respond: a. b. c. d. The Gig has a proven track record of paying dividends so go ahead with the investment. The new album is a guaranteed success, so there is little risk involved. This appears to be a Ponzi scheme so reject the offer. Everyone so far has made money and hundreds of people have already done their research, so it is a quality investment. Question 3 The board of South Soap Ltd, an Australian soap manufacturer exporting throughout the...
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...Class of: 2013 Course Title: Financial Risk Management (FRM) Semester: III Credits: 3 Course Objective & Learning Outcome: This course gives students a working knowledge of derivative instruments and their applications in managing various types of financial risks. While doing so, students would understand the organizational aspects of those risk functions and their roles & responsibilities. The emphasis is on mechanics, properties and valuation of forwards, futures, options and swap instruments. In covering these instruments, cases, examples and notes would be sought from markets so as to provide a holistic view of the financial market structure i.e., currency, fixed income, equity and money markets. Cases discussed in the class would be contemporary in nature drawn from international experience. Pre-requisites: Students are advised to be through with Financial Management I, Financial Management II and Quantitative Methods. Students are expected to go through all the reading prescribed before every class and make a meaningful contribution through active class participation. The course is delivered through a combination of case discussions, problem solving, real life risk reports and simulation. The course would have an analytical and numerical flavor and hence students are required to bring their calculators/laptops to every class. Text Book: 1. Hull, John C. & Basu, S., Options, Futures, and Other Derivatives, 7th Edison, Prentice-Hall...
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...TERM PAPER: Risk management in software engineering CSC 532 Advanced Software Engineering Vijaya Sankar Karri Louisiana Tech University Table of contents Abstract Page No 1. Introduction 1 2. Risk Management Concepts 2 3. Framework Overview 3 4. The principles of risk management 4 5. Risk management in project management 5 6. Conclusion 5 7. References 6 Term Paper ------------------------------------------------- Vijaya Sankar Karri RISK MANAGEMENT vsk007@latech.edu Abstract Basically in software engineering risk management is an important part of project management. This term paper gives a detail introduction to the risk management concepts, overview of a framework. The main goal of the risk management framework is to reduce the chances of uncertain events, and to maintain all possible outputs under tight management. Risk management has to making judgments about various types of risk, software development risk, operational risk, and information security risk etc. The risk management framework is mainly intended for risk management principles for improving the quality of software development. 1. Introduction Even if most of the organizations uses risk management framework while developing software development system. The framework is used as a foundation for comprehensive risk management methodology and it also provide help...
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...Overview 3 1.1 Introduction and Scope management 4 1.1.2 Project Introduction 5 1.1.3 Project scope 6 1.2 Project organization 6 1.3 Management Subplan 7 1.3.1 Objectives and priorities 7 1.3.2 Assumptions 7 1.3.3 Dependencies 7 1.3.4 Constraints 7 1.4 Risk management plan 8 1.4.1 Handling the Project Emergency 9 1.4.2 Risk management process 10 1.4.3 Risk Management Organizational Responsibilities 11 1.5 Controlling and monitoring mechanisms 12 1.5.2 Communication plan 12 1.5.2 Communication plan 12 1.5.3 Staffing plan 12 1.5.4 Budget 12 2 Technical subplan 13 2.1 PBS 13 2.2 WBS 14 2.3 Network chart 14 3 Project summary 15 1 Project Overview This part of the “ OneFit ” Proposal provides an introduction of the purpose, scope, organization and objectives of the project for which the Plan has been written, the project assumptions , dependencies and constraints, a list of project deliverables, a summary of the project schedule and budget, a discussion of the risks and the plan for evolving the “ OneFit ” monitor system. 1.1 Introduction and Scope management 1.2.1 Project Introduction Project name is “ OneFit ”, and it is a monitor system, which can connected with different kinds of “OneFit” trackers and helping people to record their healthy data, e.g. Heart Rate, Sleeping Rate, Steps of the day, the frequency of doing exercise, etc. 1.2.2 Project Scope There are the main steps in scope management process. * Inviting...
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...Introduction to Project ManagementCourse Name IIL-IPMIIL-XXX Organizational Diversity: The Project Management Products, Programs, and Projects Let’s define each term in more detail… Products Programs Projects Foundation ConceptsModule Name 1 Introduction to Project ManagementCourse Name IIL-IPMIIL-XXX Managing Products, Programs, and Projects Product Management Direction: Product capabilities, features, profitability, customers Data: Product capabilities, requirements, schedule, costs Program Management Direction: Program-level budget, priorities Data: Project resources, estimates, risks, schedule Project Management Standard Project Management Processes Monitoring & Controlling Processes Planning Processes Initiating Processes Closing Processes Executing Processes PMBOK® Guide – Fourth Edition, p. 40 Foundation ConceptsModule Name 2 Introduction to Project ManagementCourse Name IIL-IPMIIL-XXX Sample Project Life Cycle Define Design & Plan Develop Implement Closeout Across the Project Life Cycle Initiating Process Group G Level of Process Interaction Planning Process Group G Executing Process Group G Monitoring and Control Process Group P G Closing Process Group G Start Define Time Design & Plan Develop Adapted from Figure 3-2, Implement PMBOK® Finish Closeout Guide – Fourth Edition, p. 41 Foundation ConceptsModule Name 3 Introduction to Project ManagementCourse...
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...Business - Daniels and Radebouqh 2. International Business - Sundaram and Black 3. International Business — Roebuck and Simon 4. International Business – Charles Hill 5. International Business— Subba Rao 3.0.2 Strategic management 100 Marks Course Content 1. Strategic Management Process: Vision. Mission, Goal Philosophy. Policies of an Organization. 2. Strategy, Strategy as planned action, Its importance, Process and advantages of planning Strategic v/s Operational Planning. 3. Decision making and problem solving. Categories of problems, Problem solving skill, Group decision making. Phases indecision making, 4. Communication Commitment and performance, Role of the leader, Manager v/s Leaders Leadership styles 5. Conventional Strategic Management v[s Unconventional Strategic Management. The Differences, Changed Circumstance. 6. Growth Acce orators: Business Web, Market Power, learning based. 7. Management Control, Elements, Components of Management Information Sysstems 8. Mokena’s 7 8 Models : Strategy, style, structure, systems, staff, skill and Shared values 9. Group Project Reference Text 1. Strategic Management — Thompson & Striekland McGraw Hill 2. Competitive advantage – Michael...
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...Credit Risk Management Ken Brown Peter Moles CR-A2-engb 1/2012 (1044) This course text is part of the learning content for this Edinburgh Business School course. In addition to this printed course text, you should also have access to the course website in this subject, which will provide you with more learning content, the Profiler software and past examination questions and answers. The content of this course text is updated from time to time, and all changes are reflected in the version of the text that appears on the accompanying website at http://coursewebsites.ebsglobal.net/. Most updates are minor, and examination questions will avoid any new or significantly altered material for two years following publication of the relevant material on the website. You can check the version of the course text via the version release number to be found on the front page of the text, and compare this to the version number of the latest PDF version of the text on the website. If you are studying this course as part of a tutored programme, you should contact your Centre for further information on any changes. Full terms and conditions that apply to students on any of the Edinburgh Business School courses are available on the website www.ebsglobal.net, and should have been notified to you either by Edinburgh Business School or by the centre or regional partner through whom you purchased your course. If this is not the case, please contact Edinburgh Business School at the address below:...
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...Risk and Financial Impact As with all new ventures, potential risks may have a financial impact* on Boston Beer Company (BBC). In short, the latent risks of BBC’s new hard soda product line may cause revenue loss. Events (e.g. regulatory changes, supply shortages or natural disasters) may have a substantial economic impact to business, based on how business activities are effected (InvestorWords, n.d.). The following three sections address the major potential risks and financial impact, and the mitigation plan which addresses risk. Potential Risks Table 1: Potential Risks Suppler/Vendor Concerns Federal, State and/or Local Regulations Raw Material Prices Access to Capital Ability to Innovate to Meet Customer Needs Distribution Disruption Economic Conditions Competition Less Demand for Products Source: (Toomey, 2014)...
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...Risk Management Plan Project Name: IS305 Project Manager: Paul Bettinger Date: October 1, 2013 RISK management PLAN INTRODUCTION 2 PURPOSE AND SCOPE 2 RISK MANAGEMENT PLANNING 3 RISK MANAGEMENT ASSIGNMENTS 6 RISK MANAGEMENT TIMELINE 7 MITIGATION PLAN Introduction 8 Cosiderations 8 Prioritizing 9 Cost benefit analysis 10 Implementation 11 Follow-up 11 Buisness impact analysis Introduction 12 Scope 12 PURPOSE AND objectives 13 Steps of bia 13 final review 15 BUSINESS CONTINUITY PLAN Introduction 16 oBJECTIVES 16 BCP PLANNING 17 PLAN UPDATES AND TRAINING 21 computer incident response team Introduction 22 Purpose 22 elements of the plan 23 incident handling process 23 cirt members 23 detection 24 containment 24 recovery and review 24 cirt policies 25 FINAL THOUGHT RISK MANAGEMENT PLAN INTRODUCTION A risk management plan is a process for identifying, assessing, and prioritizing risks that could cause the company a loss. Identifying these risks, threats and vulnerabilities and taking action to prevent or control them now and in the future. Creating a risk management consists of measuring and prioritizing risks involved and taking actions to reduce any loss the company may encounter. Being that indirectly we work with the Department of Defense, which as you knows is a department of the United States Government dealing with national security, a well-developed risk management plan is of the upmost importance. Without updating...
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...Running head: Management Name: University: Course: Tutor: Date: Project. Scope Definition of scope Items beyond scope Project scope Risk assessment Project risk assessment Milestones Scope definition. The project will introduce new mobile phone services that will include: * Conversion of voicemail to text * Encoding voicemail into different audio formats * Integration between computer phone software and mobile phones * Integration between landline phones and mobile phones * Conference call services through mobile phones The reasons for undertaking the project include; * To introduce the conversion of voicemail audio various formats * To introduce the conversion of voicemail audio into text The anticipated benefits that are to be realized from the introduction of the service include: * Users of the service will be able to receive voicemail from their answering machines to their phones in audio formats that are compatible with their phones * Users will be able to receive their voicemail from their answering machines in form of text on their mobile phones. They will be able to read a well edited conversion of the audio from their answering machines. * Users will be able to enjoy clarity of the messages in their answering machines regardless of the quality of the initial message. * Users will be able to receive text formats of their voicemail in their emails. They will be able to read a message just as it was...
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...Deliverable 4: Risk Management Table of contents 1. Introduction 2. Scheme Used for Risk Management. 3. Risk Management Strategies 3.1. Risk Register 3.2. Risk Treatment 4.Risk management incorporated as activities in project 5. Others 1. Introduction. It should not surprise to anyone that the concept of risk and its identification, management and control risk will be one of the major forces the project stakeholders. We will need to collectively address and acknowledge by all the project stakeholders to the project all exist in an climate of change-and change brings with it one constant :risk. The goal of risk management is to ensure that a suitable risk response mechanism is put in place to reduce the resulting consequences in the project. 2. Standard Used for Risk Management Process. Standard "AS/NZS ISO 31000:2009 is used for this proposed project to mitigating project risk-from concept through to finalisation. 3. Risk Management Plan. 3.1. Risk Register. We have developed a Risk register for the current project. Qualitative risks has been categorised and based on likelihood /their consequences ratings. We have used Table: 1 for the level of Likelihood and Table: 2 for its consequences. Table: 3 the Risk severity Matrix has been used to identify the risk priority of the project. [pic] Table. 1 [pic] Table. 3 3.2. Risk Treatment. Identifying, assessing, analysing and managing risk at the start of the project does mean that Project...
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...Introduction to CreditMetrics™ The benchmark for understanding credit risk New York April 2, 1997 • • • A value-at-risk (VaR) framework applicable to all institutions worldwide that carry credit risk in the course of their business. A full portfolio view addressing credit event correlations which can identify the costs of over concentration and benefits of diversification in a mark-to-market framework. Results that drive: investment decisions, risk-mitigating actions, consistent risk-based credit limits, and rational risk-based capital allocations. J.P. Morgan Co-sponsors: Bank of America Bank of Montreal BZW Deutsche Morgan Grenfell KMV Corporation Swiss Bank Corporation Union Bank of Switzerland Table of Contents 1. Introduction to CreditMetrics 2. The case for a portfolio approach to credit risk 3. The challenges of estimating portfolio credit risk 4. An overview of CreditMetrics methodology 5. Practical applications 3 9 12 14 30 Introduction to CreditMetrics Copyright © 1997 J.P. Morgan & Co. Incorporated. All rights reserved. J.P. Morgan Securities, Inc., member SIPC. J.P. Morgan is the marketing name for J.P. Morgan & Co. Incorporated and its subsidiaries worldwide. CreditMetrics™, CreditManager™, FourFifteen™, and RiskMetrics™ are trademarks of J.P. Morgan in the United States and in other countries. They are written with the symbol ™ on their first occurance in the publication, and as CreditMetrics, CreditManager, FourFifteen or RiskMetrics thereafter...
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...Table of Contents Project Management................................................................3 Project Management Professional (PMP)®............................3 Diversity and Employment Compliance..............................13 ADA Compliance in Business...............................................13 Project Management Overview............................................3 Managing Projects within Organizations.............................3 Project Management .............................................................. Process Groups.....................................................................3 Execution, Monitoring and Controlling...............................3 Project Change Control and Closure...................................4 Initiation Basics, Developing a Project Charter and Project Management Plan...................4 Collecting Requirements and Defining Scope......................4 Monitor and Control Project Scope......................................4 Defining and Sequencing Project Activities..........................5 Developing and Controlling the Project Schedule...............5 Estimating Activity Resources and Durations......................5 Controlling Costs..................................................................5 Estimating & Budgeting Project Costs.................................6 Project Quality Planning......................................................6 Quality Assurance and Cost Control........
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...Tony Stark Risk Management Project Part 1 Task 1 Introduction A risk management plan is important for any business or organization regardless of the business’s or organization’s size. In the case of the Defense Logistics Information Service (DLIS), a risk management plan is critical in making sure the data that DLIS handles is protected. Loss or stolen information from DLIS can affect military assets. A plan needs to be made to be able to follow procedures in the event of an incident and to help mitigate data loss. Risk Management Outline 1.0 Introduction 2.1 Purpose and Objectives 2.0 Identify Threats 3.2 Attacks from the Internet 3.3 Hardware or software failures 3.4 Loss of Internet connectivity 3.5 Nature 3.0 Identify Vulnerabilities 4.6 Lack of firewall 4.7 Lack of intrusion detection 4.8 Lack of antivirus software 4.9 Lack of server updates 4.10 Lack of antivirus updates 4.0 Assign Responsibilities 5.0 Identify the cost of an outage 6.0 Provide recommendations 7.0 Identify the cost of recommendations 8.0 Provide a cost-benefit analysis (CBA) 9.0 Document accepted recommendations 10.0 Track implementation 11.0 Create POAM Scope The Scope of this risk management plan is the existing hardware and software currently in place. This is to include the current personnel, contractors, and vendors. The scope will have to be redefined if...
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