Table Of ContentERM Parr I Boox 1:
Founpations oF Risk MANAGEMENT
‘Wercome ro tur 2075 SerrwesrrNores
Reaprne Assioxarents ant ATM Srarewents,
Fornrnartons or Risk Manacr Ment
1s Risk aking Cp
2. Dein
Sars Capita Ayes Dring Model
ag Eisen Polis
44 Nonstandard Lorn 08 Ca
pplyng she AP wD
‘ance Measyerme
ai Aust Pring Mode's
hacen Masarersens Sega bes
4 Luvetation Bish sal Data Quality Manegsmest
Prasad Disaes
pow alana Wha, Ase Migy a, Set Hs Hap
Cogeot Conduct
JRINDAITONS OF Risk MANAGEMENT
Pasr BRM Exane Questioys
Fowesan iss
Lnex
Eman
eet
Tage
BRI AK ybe Tig on Rib hkoat BT gawd
"veda re eS fA.
GO dE
{srt feed fy Kaplan Scat of FRAP std nforatan nt foi sr my ass ae line
bythe pir uri CARI inn apail fir ays cs pl ty tc rt ln Schoen,
Eten iret tenis gis al
GARE FRM ate Fan
evenness care oped war tien perience tor her eetid dein
Eheenecesioas ean snob pir eas asiciar in pew no ht
dra: Sse boa bs ad ooh rg day St be
These sctana a bask ul on he ord dp eld 9
sna Hoes tne cans be pasa ans wares oarep foe wae
a ee oe
WELCOME TO THE 2013 SCHWESERNOTES
‘sak m= ft Using haga Sho
bea:
10a pow
hap yo pgpat sn he int 1 RB
sSapenin h esoiness "sind wi the Sls Ra, sggset lp se we
s
ess pte eli 2s an stay
Wear se pled
inéuston, Vea 18
rachael pa examen us oad ot et usd Ail
Hass tas llsoar Rain theses assis yaa atl sont aah
salves ft ly in ob os live wns an sno shat sow ss
Sol yey pds las hess
SchwneserNores™
esi of far yoliraes rat ince vomp te ever geal ik tka
2 AM ay temerns, Conape Che. ce nlp cos pratons lie try ts, a
SalI
hey sunk, seve eel tle yeesigns ur past 2M eva Th
‘avesions ae ren tuol Soe merece orm ane lily aval een
otis hokey rea the ager vet «see progr“ acon
“enn
Ondine Pri tice Questivas
‘To erin what you let, ite supertan: thie ou quiz yourself ote, We oer ar or ine
von of the See ch contains boadzede of Paz T prac
aed esplanceras. Quizes ate "AGM! epic, opie ase, Bul your o
ising she vopse atl shs outer of ques,
Practice Exams
Schon oft te Gil say gato sats The
8 impona za a gsi,
Ah opal sda Tg sill esol en The Paste Laan bh sat
sina i ll opens Gi 9A gratrg al va fo
Seheseser Saudy Planner
ee rar Oline As
sedeeTh
ch opie ara ines ile oa
secgess cough The cum
et te Lge he eile nel soa dep othe war ja sa
svi ScrweseeSqae Taner well eee a ce be i orp. aking
bs eks eo rep yu te ale ane Hel pe meine sat
‘Welonie wo the 2015 SfuseeeNonee
Additional Resources
Crear of he Escorial or Premium Packages clio recive access co our Insecta led
fice Toure, Chie [ovrs lle you ro get your qnesioasabour ths exericaluma answated
in vel time aad wo ste questions Hor other cané! dacs ‘and intro: sates wel
Obtice Hore a «eat aase lve jeerarve online zat wth ove tevin ot Part expert,
Archives of previous Ofice [ours dessios er be sorted by topic or date and are posted
‘ordy ater each session
‘The Be I TRM exam i toonidabechallege tcoveing +2 angusd seedings ad
400s Ac seremente, ane you must devete considerable tins and eft ro he proper
prepared. Thete sic no sheet! You reusleann dae mace, now be seivinelogy end
reslniguer, uadaticard the concep, aad able co aswer 0 sulle choice cussions
quid and facet P51 consccrs 250 bouts isa good seinen of he seedy ine sequied
fn: average, hae sorte cendicates wll need szore ore tn, Cepeing on sir vk!
rounds aud experince,
La ip vou sally ester cha rate and he dle
sevsstoohot edzeceonl ero
pospate fie PRM ena,
nelud.ng
8-Week Online Chass
(Ou Hevieek On ine Ch i offend e's wach. ging iy Marl torch Ming seam
sind Sapam Forse Bs
Ist sxase, This ane ss ings ah puters ain al
fbcetcon cnt yur home Tiss wh 24 lo ete stat wh al hy sae
Du Jo Paul Bisa CE, FRM ot Di. Gy Filbeck, CFA. FRM, CALA. The Jase
fete inedepl sir age of difzlt eatin, fata: Eastoack daring tne aid 8A
‘esos ca discusion 2a yp iar questions heh vd slapaceanc aaa Ube scsi
ane Fought the seinen. Caradicates sual ins he S-Weeck Online Case aso
Trae "Ul ascaw a suppleness iit the Sloe Vid
chun cud ta adn eh ves potions a attr ee
Tave-Seasen Review
Latessnan view ad sean grat accan mia cea ke lfm. Oar Binal Rsv Pas,
Tes yu ova nae yur ex wale ith pues apace Ee aa
stig is Pid Revcw Pack ina he Fil Wasi Neko lw iss is
oven uf osu casio types Final Review Rxau font 4 sce meal hy and
10 Bul Revi Chutdelenk sone” usengeyot thy BRR crieuhent
FAD Siac
‘Kilonme whe 201! Semen Soten
Pact Topic Aree Weighting
An passing, or th sgam, your mia pe tiezuion a9 the w.ghtscegse ws each septs aee
2 Tilloes
ovihie eecuteauluen he Fas Upc 2.04 og his
Foslaonm oRhe Mangan 2h
‘Qe led Wa
inal hte Peat 3
Vain al Rik Minh
Then m Succeed
Ver ane ou shornars 9 stshing i this ream, Basset ARMs goa vy the
ss wera haw well you enone ee Pee Tera You sole lei eulogy arly aa
stile your acide plo>, Yar el Hes eel the Serer enaph he Cone
Chel tr 4s ee sdk ech bl, you KD anger she pide Sel Tee
sttewions ral pare RIM aca questions eo ralercid how euneepts have be tre
the past, You s2oul Ssh che vere curs:
“This wll ellow scien ise SoePsscece Bears aad Ecrve even vt ov opis
dave noe ys: mae
FE Sane Ia |
: 3
a teat on ee lire he BRM
ess segans,
Ete Sete
lee Sich, Ok, 2 RM
PRM Preduch Matay1
Kuapl: Selmesa
ReaDING ASSIGNMENTS AND AIM
STATEMENTS
‘The fori nasties ina revi ofrbe Fe tions ef Bik Meroe preci csp te
the AT manne ore By he Cia Anite of ith Praca
Reapine Assicn scents
1. Rive Lakin A Cinpoite Gensinance Porpsstng” hue Ft
Cnpecadon, World Bani, Ceuap. fave 20124 “ange Hh
bev. alsin, Gruber Mort 9 |. Brow, Staph Jd Giaistagn, Willi.
aes Pris YBa sd seve Zot, lon ‘Haake Nk bi Wily
S501, 20
2, "adnan EFicn Melon Clay
3." he stand Capit Awa Ping Mens” Chater 13
4 Novnscndl Fata af Ctl As Ping Mink hap 4 ge
fam Na! al Les donnal, tanga, Piao Baony an Pinte cia Met
‘Sen Enya: ln Wi sp 8 Ses 2805),
5. Syplyng he CAIN wo Perea Mlaaae rer Singhs Parnas
‘Man bist” Cape So 2 a ‘pgs
Uosarvien, Autiony ane Camus, Deon BE 8
sind ehne Mi Cain Gelatin lluar. Nk fb Wig Be Sins, 20M}.
4. “Inferratinn Ricca Tata Quality Manages Capes 3 loge
Aly Sine, Mownois! Rik Mactgonnt A Patton’ hd an tenong Market el
Cos Bi Ne Yor el Wiley Se, 203.
imac Diva! Chap
spss 108;
A. Seu Rev “Ride Slams Bailes What are‘They and en Po They
Fiappnad” Fer Cale Bsns Weg Pape Sere Ce 2008) page 1185
49, GARD Code ot Concuee
orilable on GARD website page 1
Paget Ta Rae
Reading Rolgponats sad ALM Stato
AIM Starenteurs
1 Risk Toking: A Corporate Gaoeenance Perpactioe
‘Cangas ter eneeplecng ii enc gal be ae
1 Daetie ik, Mew the vlasiicerign ol rial explain dhe“ lay by “een
salve ceerion. (page 1U!
2 Describe a adc pootle and eeplin 40» ome i crested. page LA
i rte of rk goveranzee in a supe, ‘page 132
4. Identify Lnssprse Risk Mzagement !ERM) appros:zes and expan we cher
ercem in an organiatia. page Tal
Fe risk ase er projec can 2 eimate cough “he
tn ate, bos suc ikea ated scm 1
nd strengshe aad woaknste of thi aparach. pags 13)
wing Hest.cl etas ane squire
6. Nsrihe pales ech atss wha
oie as pasta oahu ved page 1
7. Content at sheadte isc 8 fas 33 ys prot as py has tea
silvae she valacol Tacs ele Lage 6
8. Dhowriles Isa tasry axpeaban apron rss ast sks an ota ii
lennenavakealomal canal ite pape 2
2. ‘Game stzpe = re SIRMIC snk maga mes gems a armani
spe el 24 cs age 20
16 ithe fink estroge ce st nara is aks
1. Conapane al ura: lBeren ype ro
lew cures pri sprouse in yrerl with rid anal
Fis aprrvarhes od
archos, pate 221
tr ee hedge is
nec eoee at elimi
1, Meneseinazcal products 9 Ke
rhs, ipege 260
<. Tone she ncetods a firs san use
cexpliz ho an ote
emigre page 268
basi pe in bald
‘aporure to spec
ie sis
or chan es compenters, 22d
sulvure of pridezecseakang aman
god nee munagstens sys page 28
prdbke wos abIS sad beat prsthas in ce
os nab ih
eto Gage 251
2. edimeatng FMiient Portfolios
Geta somali es ange ont ae als
1 Colealate she sxpesveal tel sult lity pantie aly san tpg 3
2. iplin hag cavavnce ane core air lfc ova salsa al wait a
Ipsilon ney ast
8. Decribe che supe ef he rola pasliliassnte page AP
Det the minum 24tance pol
3. Detne the eciereerier ne sie He moat an ob ear piesa
‘once shore sales sed burro ng page sh
Ba hqahe Tage
Bek
ding Asignmenrcand AIM Saements
3. VheStondied Capital Asset Pricing Monel
(Canidae vey tg his ong nee able
[Unies the derisa an ae ranonstsel rs APM. pag 60
ee ite anu raring lac APM. pag 58
Deets espa rh Fs ug
4. Us hy CAPM nora he rsise rte nau ak pe
4. Nonstandard Forme Capital Asser Pricing Mosely
Canis, afar srg th emg, hele he ge
sike he inp om the CAPM of ellos
‘Shu. skaclglowee
Teche lenge berosing
Personal see
Nonmarkerls ¢ ery
Heserageceons expeecons
Nonsprce tacing behavior
he the lowing rule versions of CAPM:
rarprion-cnens CAPM
SPM indeding in
Mukibers CAPM
‘page?
5. Applying the CAPM to Psfoomance Meanmemene Single Index Peformance
‘MearuremearIndicarars
Candidaces ater cosapetng his
1. Caleulate, compare, snd ev
Fences alpa.fpage 84)
sg, soul be able to
ths Tieynor measure che Sherpe tnecure, and
2 Comaute and intergee wacsing cr exe informacion tate. and the Soding re
ge
5. Delize bec: and calculare ds bot of apollo, ‘page a
4, kaplain dhe Mommagacar Rang Spam, Vek bese. and nsanagemsat eae ke
saivwed such mesures. (page 8
6. Unfoceuation Riskand Data Qualiey Management
‘Candas afercosnpleting his eading, chouké he ble ue
1. Des be was in ich a ures can bs nepaiely pace by poo gus das,
poet
Zhe mee casnooa ust ach sor. data srs, (page 5
2 ube key dimoninns ish chavacteice asp das. page 9
4. Deli apni dua yosetrane ate dif
inicio asa data walasion. page 97
5. Diente hoe ie dulce tara csttng dat pity ase
iho ee iat visits ly whi ateple cata ein ea be
iat b
ym
6. Usprain he amottion ad ashanice of sang sts peiy sus
Pag Faia
‘Reading Anigoments and AIM Stans
Fimincial Dita,
(Canes aor vrmpleting hs nae hole ae
H hey tae tha Tena theless ener a 4 “leigh
‘ce ei
(Che Mlanhacgn nl heim
Kilder Po
Barings
Allie Fish Bank
‘Unica Back of Switelaad °CRS)
Long Tera Capsel Manogencene "TCM
Mstllgeel chee
Bankers Tease
Ipage 195.
8, Risk Management Hiluscse What Ate They aud When Ido They Happen?
1 wth Weyl Svates
uct
(Candice, afr completag ahi reading eld bs abl
Define es ols w"fsk mnagement atl xp ale. wba lage Sasi Tos it
rosea Taconite nenapacten:. “pope WM)
2. Daur lowe sincsgeets et pigs 12:
3 Dicuthe fe ih as Ie nina pg 2
4§pfain ses fw sat fil csake aoe tal tape ioks so sacinas a
ning sates pg 2p
5. apa sk-pootana ufsasnnsin ir eText bk sabgancs.fpnge 12
{6 Dassile ow irs en Fly corsa not cel sang rng on a ugg
ois. age |
7. Kaplan her cot eg mes an eer she luorteseningy al xiang i
rors pany 132
9. GARP Cade of Conder
ing th ceding, should Be abe
’h GARD wercber with reset co pooiessinal
ot cere, conddencalice at inkormation el
Candidate com
1 nssibe the ressonsitilsy
newts ethical eandac, confi
x orale aceepees pracice ia sick mar
DDescibe the poteniol conseaueses of elaving the G
page 2:
San alee
Te lowing ra sie othe leandavons a SR Wanapimens pope guetta eA
semana tantly GARPS, The pea aad
Risk Taxine: A CorPoRAre
GOVERNANCE PERSPECIIVE
apie
Fxam Focus
Lethe cope. we oeesns cn owerview ot wre ss manapemen:cocepes whic wil be covered
throngaoue the FRM cuercoli, A maior of thee consents wl ke dzcued in aoe eel
inlacer tonics: he Sehweseh ones, sie materal esis the types of ak faced by Ezancil
inscewiens sd xaperrae eal chat can be used to mazage “hese ssh. Por the esa, be bie
ro simate che olue ofan aseo7 project uanga iskeadjsteé clecount rate, Als, anderrand
the towe steps ofthe ATRMIIC cs menagemcene sacs,
isa.
304 1.1: Deine rsk, eeutify he daedfcations of risks, and explain dhe le
aye by risk i value cretion,
Vhs atonal vier of ek is abasic getvu ly he probably of. Aeing
Flr wer a mons cumple era 0 ermine it ag hth anges ea an oppor
irl the amet nPngeraine. Soe samp an Favour imei yeovrtne mey ake
I righ ideale in green rr pote roca pies. Fone moi pec
File ges water, ign, ema, ane ert
‘Market risky rhe fk dhe delining pce or subility of prices in che fancia, marks
sel elt i len, "hoteae tn ahr sien a cen ik; aot vnk god ela ri
Liguidiey rik iezve cose ol ein sgnticons Ines dees intilty 2
seBelendly liquidate «portion at sie oeiee
‘Greil i he posing of Usbule by » ceunserparty in x ficancia! ccasaetvn, and the
money expostme 79 edit cl is unceion of he prckabilcy of deal sn she ns Cat
reves ger Get occu
(Operational isch risk ofloss due vo madecusce monitoring serene, raanagestene
flute, defeceve conto, zd, andes nate ext, Operamonal nuk i pesca
tebwaneto desivenses eiding becrsee derivatives ae inzetene
insrmatene, which enable ides to enzors a tn so ezorsiou ove a
stall amouns cf api.
Seen
