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[Free] Frm Part Ii (2020): Liquidity Risk

Preparing for the FRM Exam Part II? Take this Course on Liquidity Risk – Free Course

Added on September 13, 2020 Finance & Accounting 1 min read

What you’ll learn

• Liquidity trading risk, cost of liquidation and liquidity-adjusted VaR (LVaR).
• Liquidity funding risk, funding sources and lessons learned from real cases
• Basel III liquidity risk ratios and BIS principles for sound liquidity risk management
• Liquidity black holes
• Causes of positive feedback trading

Requirements

• Have passed the FRM Part 1 exam
• Have studied the FRM Part 1 syllabus
• Have knowledge of financial products and financial markets
• Have knowledge of statistics (i.e. descriptive statistics, Normal distribution)

Description

At the end of this course, you will be able to:

Explain and calculate liquidity trading risk via cost of liquidation and liquidity-adjusted VaR (LVaR).

Identify liquidity funding risk, funding sources and lessons learned from real cases: Northern Rock, Ashanti Goldfields and Metallgesellschaft.

Evaluate Basel III liquidity risk ratios and BIS principles for sound liquidity risk management.

Explain liquidity black holes and identify the causes of positive feedback trading.

The instructor covers the syllabus in detail and where applicable, will illustrate how the calculations are done using the formula or in Excel spreadsheet.

What’s included in this course:

1. Course notes (in PDF form)

2. Spreadsheets used in the course.

3. Course videos

4. Q&A Section (only pertaining to this reading in the FRM syllabus)