CRMO Syllabus
- Part I
- Part II
- Part III
Section Weight Introduction Risk management fundamentals 15% The basic chapter of risk management provides a comprehensive and basic introduction to risk management and portfolio theory to help candidates build risk management thinking and lay a solid theoretical foundation. In addition, through a large number of Greater classic financial risk management cases, the candidate should have a comprehensive understanding of the whole process of risk management. Mathematical basics 15% This section introduces the basic mathematical knowledge necessary for financial risk management, covering the basic knowledge of probability theory and statistics. Modern risk management theory is completely based on statistics, probability theory, random process and other mathematical cornerstones. A solid mathematical foundation is helpful for candidates to learn follow-up knowledge smoothly. Fundamentals of accounting 15% Accounting is the foundation of finance, and finance is the soul of accounting. With the rapid development of economic Greaterization and capital market, accounting, as a business language, is playing an increasingly important role. This part helps the candidates to build a solid accounting foundation of risk management by introducing the accounting learning method, measurement basis, recognition and measurement principles, and the financial accounting theory, fundamental accounting assumptions, accounting principles, financial reports, financial statement analysis and other specific methodology of accounting. Fundamentals of market risk management 20% This section covers four major categories of financial markets and corresponding financial products. The markets include stock market, money market, fixed-income market and derivatives market. It covers fixed-income products and their pricing, and the concepts and pricing of forward, futures and swap contracts. For options, candidates only need to know their concepts and roles. Fundamentals of credit risk management 15% Credit risk is one of the oldest financial risks. It is a loss caused by the failure of the counterparty to perform its obligations. With the complexity of the financial industry, financial risks gradually transfer from traditional unilateral risks to bilateral risks. Therefore, higher regulatory requirements have been imposed on institutions. Operational risk management basics 10% Operational risk became familiar after the collapse of Barings bank in 1995. Operational risk has been regarded as one of the most challenging peaks in the field of risk management because it involves a wide range of risk types and is difficult to predict and measure. Fundamentals of Quantitative risk management 10% This section is a forward-looking course in modern financial risk management technology, mainly covering a brief overview of the FinTech field, risk management modeling and the basics of Python language. Section Weight Introduction Advanced accounting of risk management 15% Advanced accounting of risk management is a higher level, more in-depth analysis of accounting to lay a good accounting foundation for financial risk management, and much more important topics are discussed, including long-term equity investment and consolidated financial statements, financial instruments, income, leasing and other advanced accounting topics. Market risk management 20% Based on the knowledge system of Part I, fundamentals of market risk management, this Part further discusses more complex market risks and their management, including risks from interest rate and risks from options, and comprehensively expounds the management means of market risks. Credit risk management 15% With the growth of trading between counterparties, the credit risk encountered by the traditional financial institutions as unilateral credit risk is gradually transferred to bilateral risk, also known as counterparty risk. It’s necessary for candidates to master credit model, and to skillfully calculate probability of default, loss given default and expected exposure. With the popularity of application of structured products with diverse sources of cash flow, the correlation of defaults is growing much more important, thus bringing a brand new credit risk. The last part of this section introduces the method of model credit risk management, and especially the way through the derivatives. Operational risk management 15% This section introduces the latest type of risk, liquidity risk. Liquidity risk comes as a lack of cash or the inability to sell assets. This part also introduces the practice of capital management theory in bank risk management and a series of more complex risk management failure cases. Professional standards and compliances 10% GIFP has strict professional ethics requirements for candidates. Candidates should adhere to the principles of integrity, competence, diligence and respect, and treat the public, customers, potential customers, employers, employees, colleagues and other participants in Greater capital markets in a professional and ethical manner. Countries around the world have set strict regulatory requirements for various enterprises in the financial industry. Being familiar with this series of laws and regulations will not only help to avoid regulatory risks, but also more effectively monitor internal risks of enterprises to avoid losses.
Risk management modeling 15% Theory is closely linked with practice during the process of risk management. This part introduces the knowledge and skills of risk management modeling, focusing on practical operation, to help candidates establish the idea of financial modeling and develop the means of financial modeling, so as to be able to apply theoretical knowledge to the working practice of risk management. This section covers the four most important parts of financial modeling: Python programming, simulation, volatility modeling, and correlation coefficient modeling. Financial technology 10% This part belongs to the forward-looking content of modern financial risk management technology. Fintech includes third-party payment, blockchain, crowd-funding, big data finance, digitalized financial institutions, Internet financial portals, etc.. Candidates are required to have a simple understanding of the business models and industry development trends of these business models, and be able to compare Greater and local industries. At the same time, it also discusses some problems in the FinTech development of the candidate's country or region. Section Weight Introduction Macroeconomics 15% To fully understand the development of macro economy, to recognize the new cycle, and to dynamically grasp the trends of local economy and the others are the capabilities that senior managers of financial institutions should have, as well as the necessary factors to improve their vision and horizon. A good grasp of economic methodology can help senior managers improve their ability to deal with economic problems and make work decisions more suitable for the needs of market economy environment. Corporate governance 20% Good corporate governance can help financial institutions effectively control risks and achieve their sustainable and healthy development. It can motivate the board of directors and senior management to pursue goals in line with the interests of the institution and shareholders, so as to facilitate effective supervision. Risk management strategy 15% Financial institutions should develop clear risk management strategies and evaluate their effectiveness at least once a year. Risk management strategies should reflect risk appetite, risk profile, as well as market and macroeconomic changes, and be adequately communicated within financial institutions. Management and Leadership 20% Leadership is a comprehensive art. It not only contains a variety of specific management skills and management methods, but also includes foresight and planning, comprehensive judgment, communication skills, team building and professional ethics and other aspects of the comprehensive quality. For the senior managers of financial institutions, it is necessary to conduct comprehensive ability training in four modules: strategic management, organizational management, project management and leadership. Current Issues 30% Some of thematic content in the macro strategic level is necessity for all senior managers. However, for senior managers in a financial sector with different institutional attributes, the matching professional and practical abilities are differentiated. All candidates are required to ensure that they continue to learn, keep up with the current trend, understand the latest developments in financial markets, and have insight, acuity and innovative thinking on cutting-edge topics to ensure timeliness and rationality of strategic decisions.