Busy. Please wait.

show password
Forgot Password?

Don't have an account?  Sign up 

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
remaining cards
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

FRM Intro

Risk Risk is volatility of unexpected outcomes. It is the potential for the occurrence of a loss, but cannot be separated from growth opportunities.
Business risk vs. Financial Risk Business Risk: deliberate and necessary (e.g. business decisions) Financial risk: Losses due to financial market activities (e.g. interest rate exposure, default on financial obligations
Financial risk management Is the design and implementation of procedures for identifying, measuring and managing financial risk
Major financial risk types Market risk, Credit Risk, Operational Risk, Investment risk
Market risk and Liquidity risk Asset-Liquidity (market liquidity) Funding-Liquidity (cash flow)
Credit risk Default, credit deterioration (downgrade)
Operational risk Internal processes, Model risk, people risk, Legal risk
VaR Summarizes the worst loss over a target horizon that will not be exceeded with a given level of confidence. P(L >VaR) <=5% for c=95% P(L >VaR) <=1% for c=99%
Created by: npk144a