Schwesernotes™: Foundations of Risk Management

Welcome to the 2024 SchweserNotes™
Contents
Readings and Learning Objectives
Reading 1 The Building Blocks of Risk Management
	Exam Focus
	Module 1.1: Introduction to Risk Management
	Module 1.2: Types of Risk
	Key Concepts
	Answer Key for Module Quizzes
Reading 2 How Do Firms Manage Financial Risk?
	Exam Focus
	Module 2.1: Corporate Risk Management
	Module 2.2: Risk Management Methods and Instruments
	Key Concepts
	Answer Key for Module Quizzes
Reading 3 The Governance of Risk Management
	Exam Focus
	Module 3.1: Corporate Governance and Risk Management
	Module 3.2: Risk Governance Implementation
	Key Concepts
	Answer Key for Module Quizzes
Reading 4 Credit Risk Transfer Mechanisms
	Exam Focus
	Module 4.1: Credit Risk Transfer
	Key Concepts
	Answer Key for Module Quizzes
Reading 5 Modern Portfolio Theory and the Capital Asset Pricing Model
	Exam Focus
	Module 5.1: Modern Portfolio Theory and the Capital Market Line
	Module 5.2: Deriving and Applying the Capital Asset Pricing Model
	Module 5.3: Performance Evaluation Measures
	Key Concepts
	Answer Key for Module Quizzes
Reading 6 The Arbitrage Pricing Theory and Multifactor Models of Risk and Return
	Exam Focus
	Module 6.1: Multifactor Model Assumptions and Inputs
	Module 6.2: Applying Multifactor Models
	Key Concepts
	Answer Key for Module Quizzes
Reading 7 Principles for Effective Data Aggregation and Risk Reporting
	Exam Focus
	Module 7.1: Data Quality, Governance, and Infrastructure
	Module 7.2: Risk Data Aggregation and Reporting Capabilities
	Key Concepts
	Answer Key for Module Quizzes
Reading 8 Enterprise Risk Management and Future Trends
	Exam Focus
	Module 8.1: Enterprise Risk Management
	Module 8.2: Risk Culture and Scenario Analysis
	Key Concepts
	Answer Key for Module Quizzes
Reading 9 Learning from Financial Disasters
	Exam Focus
	Module 9.1: Case Studies on Interest Rate Risk, Liquidity Risk, and Hedging Strategy
	Module 9.2: Case Studies on Model Risk and Rogue Trading
	Module 9.3: Case Studies on Financial Engineering, Reputation Risk, Corporate Governance, and Cyber Risk
	Key Concepts
	Answer Key for Module Quizzes
Reading 10 Anatomy of the Great Financial Crisis of 2007–2009
	Exam Focus
	Module 10.1: The Global Financial Crisis
	Key Concepts
	Answer Key for Module Quizzes
Reading 11 GARP Code of Conduct
	Exam Focus
	Module 11.1: GARP Code of Conduct
	Answer Key for Module Quizzes
Formulas
Index