Foundations of Risk Management Archives

Formula Review for FRM Part 1 (Book 1)

In this video we review the formulas in Book 1 of the FRM Part 1 curriculum (Foundations of Risk Management). The formulas are sourced from two chapters: “The Standard Capital Asset Pricing Model” and “Multifactor Models and Arbitrage Pricing Theory”.

Enterprise Risk Management vs Traditional Risk Management

In this video from FRM Part 1 curriculum, we describe Enterprise Risk Management (ERM) and compare an ERM program with a traditional silo-based risk management program.

Difference between Beta and Volatility (FRM Part 1, Part 2)

In this swatch, we look at the difference between beta and volatility (or standard deviation) of a security as measures of risk.

Key Performance Measures (FRM Part 1, Part 2)

Here, we look at key measures or indicators used to measure the performance of portfolios specifically Sharpe Ratio, Treyner’s Measure and Jensen’s Alpha.