The Building Blocks of Risk Management (FRM Part 1 2023 - Book 1 - Chapter 1)

For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: analystprep.com/shop/unlimite...
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After completing this reading you should be able to:
- Explain the concept of risk and compare risk management with risk taking.
- Describe elements, or building blocks, of the risk management process and identify problems and challenges that can arise in the risk management process.
- Evaluate and apply tools and procedures used to measure and manage risk, including quantitative measures, qualitative assessment and enterprise risk management.
- Distinguish between expected loss and unexpected loss and provide examples of each.
- Interpret the relationship between risk and reward and explain how conflicts of interest can impact risk management.
- Describe and differentiate between the key classes of risks, explain how each type of risk can arise,
and assess the potential impact of each type of risk on an organization.
- Explain how risk factors can interact with each other and describe challenges in aggregating risk exposures.
0:00 Introduction
0:15 Introduction: James Forjan, PhD, CFA
3:50 Study Tools for FRM Exams
5:15 Learning Objectives
6:45 Risk and its Management
11:22 Types of Risk
12:13 Market Risk
20:30 Credit Risk
27:09 Liquidity Risk
29:26 Operational Risk
32:02 Business, Strategic & Reputation Risk
34:10 Interactions of Risk Types
36:14 The Risk Management Process
38:17 Methods of Risk Management
40:07 Expected Loss
43:07 Value-at-Risk (VaR)
44:37 Human Agency and Conflicts of Interest
47:40 Risk Aggregation
49:41 Risk and Reward Equilibrium
50:40 Enterprise Risk Management (ERM)

[@thewisearchitect]

Amazing!!! KZbin should have a "Love It" button too. "Like It" isn't enough. Very well summarized. Thank you.

[@makatleholephallo3267]

ooohhh My, listening to this first video just made me feel so confident, thank you Prof, your teaching skills are perfect.

[@analystprep]

Wonderful! If you like our video lessons, it would be helpful to spread the word if you could take 2 minutes of your time to leave us a review at www.trustpilot.com/review/analystprep.com

[@rosesjardin]

You sir are a gift to humanity and education! Thanks

[@analystprep]

Thank you for the kind words. Have a great day!

[@amadoubhoyediallo5330]

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[@vaibhavdpunjabi0152]

Thank you Dr. James !

[@sus_sus00]

Thank you for your lecture! I'm just streaming those videos while relaxing on the couch lol Very informative for the FRM candidates!

[@CovertReveal]

Sir the way you explain everything with examples is very good. Please keep up with the good work. Please upload videos on Quants also. Thankyou. You saved a lot of money. Love from India 🇮🇳

[@analystprep]

Sure. You can see all our videos on the AnalystPrep web-app at app.analystprep.com!

[@anuragpant2545]

Hey Bro . Are u from India? . I just started preparing for FRM . I opted for humanities in my class . I am facing lit bit problem in learning some concepts . How are u preparing for FRM .Can u please tell

[@knowwisdom3348]

Thank you James. It was really nicely explained

[@analystprep]

You're welcome. Good luck on the exam!

[@mudhyatiara4050]

Thank you for the lessons Professor 🙂 hope all is well at your place

[@analystprep]

You're very welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review

[@Alimerzahabib]

Thanks for a great session, appreciate the valued work and addition to us.

[@analystprep]

You're very welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@mainichinihongoconyukidaru8473]

Thank you for your lecture! especially use case of P&G

[@shahgul78]

Pretty comprehensive! Great work.

[@analystprep]

Glad you think so!

[@sakshi3480]

Thank you so much for making a video book wise, chapter wise and topic wise!!!

[@analystprep]

You're very welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@hoangkhanhlinh9306]

Your videos are so valuable. Thank you for making them.

[@analystprep]

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@viktor42069]

I remember that risk management episode on seinfeld. "why do they call it ovaltine"🤣

[@hendrasetiawan7220]

I love it thank you

[@jozuatjonatsoi3670]

I can't thank you enough. You gave me hope for the exam

[@analystprep]

Glad it was helpful! If you like our video lessons, it would be helpful if you could take 2 minutes of your time to leave us a review here: www.trustpilot.com/review/analystprep.com

[@mayursalunkhe1941]

Thank you sir .......

[@jimlite8568]

Great video! many thanks! (The email alarm lmao made me keep checking my mail box )

[@analystprep]

Glad it helped! Yes, we'll be uploading videos each week to further expand each candidate's understanding of finance and risk management. Stay tuned!

[@vickysharma9629]

Thank you sir. You made everything easy for our preparation. God Bless

[@analystprep]

You're welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@Kig_Ama]

7:20 I wouldn't call risk as a potential variability of returns around an expected return. It's not risk if the variability is positive and adds value to the expected return. Only variability that has a negative effect on the expected return has to be called as risk.

[@Ronzheyhey]

Thank you sir, I am so glad to find your videos on KZbin last august and successfully passed Part 1 and 2 FRM exam with one attempt in November and December 2021! Your videos explain concepts in a very clear way. 🙂

[@analystprep]

Congratulations on passing FRM Part I and Part II. This is not an easy task! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@muvunyialainclaude2809]

Can you please give me tips on how I can pass the exam?...I have part 1 exam in November this year

[@bharatjoshi1164]

​@@analystprep 😊

[@bharatjoshi1164]

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[@bharatjoshi1164]

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[@shivangipandey6238]

THANKYU SO MUCH FOR MAIKING VIDOES, GREAT work

[@analystprep]

Glad to hear! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@pockerface4321]

Thank you professor!

[@analystprep]

You are welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@jubayrulkabir2867]

Thanks for the video, I'm watching it from Bangladesh.

[@analystprep]

You are most welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@Kaplanel]

thank you so much

[@xerx_is_bored]

Thank you sir

[@valeriofulgheri3758]

Thank you very much, really interesting 😀

[@analystprep]

My pleasure!

[@hectorruiz7124]

Thanks, you are mastering this subject its really impotant for my teases.

[@analystprep]

Glad it was helpful!

[@sweetberry2004]

I can't thank you enough 🌹🌹

[@analystprep]

You're welcome 😊 If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@sadieabby8306]

To evaluate the PV or FV when we have to use S e^rt /S (1+r)^t OR TVM function of calculator, please clarify.

[@hanifmuhammad5543]

You deserve more subscriber!

[@analystprep]

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@shanluo1194]

Great and thank you. Just want to know all videos here cover all lectures of FRM level 1 ?

[@analystprep]

Yes, you can find all chapters in our premium packages at app.analystprep.com. On KZbin, we only have around 20-30% of the chapters for free.

[@candridz872]

Hi, there! I've been enjoying these remade videos for FRM part 1! But I noticed this is the second remade version of chapter 1. Also, some chapters remade for 2020 exams have been removed from the playlist. I wonder if you are going to make some further changes in the remade videos. If so, is it because you have spotted some changes in learning objectives? Anyway, thank you so much for your contribution!

[@analystprep]

Hi. First of all, thank you for the kinds words. We have removed some of the videos from the playlists, but you can find all 2020 videos well organized on the AnalystPrep platform at app.analystprep.com

[@711john8]

@@analystprep Does that mean I can no longer get the complete courses on the KZbin? And I have to pay for it at your web? Anyway ,thanks a lot for the videos!

[@rishinepal4371]

This is awesome. Thank you.

[@diegowang3014]

Thanks for your video! Could you share the PPT as well?

[@analystprep]

Hi Diego! All PPT (plus study notes, practice questions, mock exams, formulas, sheets, etc.) are all available in AnalystPrep premium packages that you can find at app.analystprep.com. I hope this helps!

[@trangtrinh3921]

🤩🤩🤩

[@butterscotch0007]

Thanks a lot sir ❤

[@analystprep]

You're welcome! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

[@sahilbalani9177]

hi if i watch all your FRM videos will it be more than enough to appear for the frm exam

[@Kig_Ama]

I just subscribed to your channel. Is there a specific order to watch your videos. A reply is highly appreciated. Ty.

[@naytun4276]

May I know the difference between systematic risk and systemic risk. Thanks.

[@nttam1920]

I really like this video and I just want to know if you are the instructor in all the videos in the FRM I & II combo package currently priced at $399. Btw, is there a code for the disc....?

[@analystprep]

Yes, same instructor for all FRM video lessons! You may use the coupon code RISK20 for a 20% discount on all our FRM packages. I hope this helps!

[@yashgupta9693]

Sir , does all your frm level 1 vedieos covers frm syllabus ?

[@analystprep]

Hi. Yes, it does. You can see all videos at app.analystprep.com included in our Learn + Practice package.

[@Endowment2012]

2022 ❤

[@konstantinosbabalis1695]

Is this playlist updated for the nov. 2020 exam?

[@analystprep]

Hi Konstantinos. Yes it is, but you can see all our FRM videos at app.analystprep.com

[@konstantinosbabalis1695]

@@analystprep Thanks !

[@user-sw3bx2zn2m]

Hello, is it possible to get the slides of the lessons? Thank you!

[@kushalkumarlath2856]

Is there any booklet of question bank available for practice by you sir 🙏🙏

[@analystprep]

Yes, you may find everything needed to pass the exam at analystprep.com/shop/unlimited-package-for-frm-part-i-part-ii/

[@saifi5195]

Anybody can suggest me frm offline coaching from noida

[@gilbertwong6435]

I am taking my frm level one exam this coming november would these videos still help? I notice that they were released 3 years ago but it did say "FRM Part 1 2023" in the title?

[@myJourney.20s]

Have you taken the course? I am planning to get frm cert next few months too.

[@gustavoduque9257]

I’m planning to take the exams in 2024. Any advice?

[@CovertReveal]

Upload all the videos please.

[@analystprep]

All other videos can be found app.analystprep.com

[@joy6097]

Hi very informative video. I am working in a MNC for 4.5 years in Finance and accounting domain(BPO) with 6 lakh salary . Before i have worked in a Indian organization ( indian accounting) for 6 year. Total work experience 10.5 years. Could you please tell me if I qualify FRM, what will be my salary? Could you please tell me if I qualify CFA, what will be my salary? Could you please tell me if I qualify Us CMA, what will be my salary? Please reply

[@CovertReveal]

U created 7 videos. There are 11 chapters

[@analystprep]

All other videos are at app.analystprep.com

[@iamtheonewhoknocks4288]

Nasim Taleb calls all this bs. What are your thoughts on his ideas??