Integrated Risk Management
After completing this reading, you should be able to: Describe the role of risk governance, risk appetite, and risk culture in the context of an enterprise risk management (ERM) framework. Summarize the role of Basel regulatory capital and the process…
Risk Monitoring and Performance Measurement
After completing this reading, you should be able to: Define, compare, and contrast VaR and tracking error as risk measures. Describe risk planning, including its objectives, effects, and the participants in its development. Describe risk budgeting and the role of…
Alpha (and the Low-risk Anatomy)
After completing this reading, you should be able to: Describe and evaluate the low-risk anomaly of asset returns. Define and calculate alpha, tracking error, the information ratio, and the Sharpe ratio. Explain the impact of benchmark choice on alpha, and…
Predicting Fraud by Investment Managers
After completing this reading, one should be able to: Explain the use and effectiveness of information disclosed by investment advisors in fraud prediction. Discuss the barriers and the costs incurred in implementing fraud prediction methods. Discuss ways to improve the…
Hedge Funds
After completing this reading, you should be able to: Explain biases that are commonly found in databases of hedge funds. Explain the evolution of the hedge fund industry and describe landmark events that precipitated major changes in the development…
Portfolio Construction
After completing this reading, you should be able to: Distinguish among the inputs to the portfolio construction process. Evaluate the methods and motivation for refining alphas in the implementation process. Describe neutralization and methods for refining alphas to be…
The U.S. Dollar Shortage in Global Banking and the International Policy Response
After completing this reading, you should be able to: Identify the causes of the U.S. Dollar shortage during the Great Financial Crisis. Evaluate the importance of assessing maturity/currency mismatch across the balance sheets of consolidated entities. Discuss how central bank…
Contingency Funding Planning
After completing this reading, you should be able to: Discuss the relationship between contingency funding plan and liquidity stress testing. Evaluate the key design considerations of a sound contingency funding plan. Assess the key components of a contingency funding plan…
Introduction to Operational Risk and Resilience
After completing this reading, you should be able to: Describe an operational risk management framework and assess the types of risks that can fall within the scope of such a framework. Describe the seven Basel II event risk categories…
Liquidity and Leverage
> After completing this reading, you should be able to: Differentiate between sources of liquidity risk and describe specific challenges faced by different types of financial institutions in managing liquidity risk. Summarize the asset-liability management process at a fractional reserve…
