Sound Management of Risk Related to Money Laundering and Financing of Terrorism
After completing this reading, the candidate should be able to: Explain the best practices the Basel Committee recommends for the assessment, management, mitigation, and monitoring of money laundering and financing of terrorism (ML/FT) risks. Describe recommended practices for the acceptance,…
Stress Testing Banks
After completing this reading, you should be able to: Describe the historical evolution of the stress testing process and compare methodologies of historical EBA, CCAR, and SCAP stress tests. Explain challenges in designing stress test scenarios, including the problem of…
Applying Duration, Convexity, and DV01
p> After completing this reading, you should be able to: Describe a one-factor interest rate model and identify common examples of interest rate factors. Define and compute the DV01 of a fixed-income security given a change in rates and the…
Interest Rates
After completing this reading, you should be able to: Calculate and interpret the impact of different compounding frequencies on a bond’s value. Define spot rate and compute spot rates given discount factors. Interpret the forward rate and compute forward rates…
Bond Yields and Return Calculations
After completing this reading, you should be able to: Distinguish between gross, and net realized returns and calculate the realized return for a bond over a holding period, including reinvestments. Define and interpret the spread of a bond and explain…
Machine Learning and Prediction
After completing this reading, you should be able to: Explain the role of linear regression and logistic regression in prediction. Evaluate the predictive performance of logistic regression models. Describe and apply methods used to encode categorical variables. Discuss why regularization…
Machine Learning Methods
After completing this reading, you should be able to: Discuss the philosophical and practical differences between machine learning techniques and classical econometrics. Compare and apply the two methods utilized for rescaling variables in data preparation. Explain the differences among the…
Principles for the Effective Management and Supervision of Climate-related Financial Risks
After completing this reading, you should be able to: Describe the principles for the management of climate-related financial risks related to corporate governance and internal control framework. Describe the principles for the management of climate-related financial risks related to capital…
Risk Governance
After completing this reading, you should be able to: Explain Basel regulatory expectations for an operational risk management framework’s governance. Describe and compare the roles of different committees and the board of directors in operational risk governance. Describe the…
Machine Learning and AI for Risk Management
After completing this reading, you should be able to: Explain the distinctions between the two broad categories of machine learning and describe the techniques used within each category. Analyze and discuss the application of AI and machine learning techniques in…
