This Foundations of Risk Management course is designed to provide a strong theoretical base for candidates preparing for the FRM Part 1 exam and for anyone seeking a solid introduction to professional risk management. The course follows the core topics of FRM Part 1 Book 1, starting with the building blocks of risk management and the role of risk in financial institutions.

Learners will explore how firms manage financial risk, the objectives of risk management, and the key tools used to identify, measure, and control different types of risk. The course covers credit risk transfer mechanisms and explains how risk can be transferred using securitization, credit derivatives, and other structured products.

A major focus is on modern portfolio theory (MPT) and the Capital Asset Pricing Model (CAPM), helping learners understand diversification, efficient portfolios, risk–return trade-offs, and asset pricing. The course also includes the Arbitrage Pricing Theory (APT) and multifactor models of risk and return, providing a broader framework for understanding asset valuation.

This course is ideal for FRM and CFA candidates, finance students, and professionals seeking a strong foundation in financial risk management theory.