Financial Risk Modelling

Introduction to the Financial Risk Modeller

Financial Modelling equips learners with the skills to conduct rigorous financial and risk analysis using the Ms Excel software. The certification provides standards of modelling guided by industry practise to create uniformity, excellent and meticulous models.

A Financial Risk Modeller will be able to handle complex analysis in Banking, Insurance, Risk and Other Capacities that require critical decision making through the aid of models.  Further, a CFRM will be enhanced with proper analytical skills standard across the industry enabling them to be dynamic and utilise their capacity across the financial industry.

The certification is of two levels;

  • CFRM – Level 1
  • CFRM – Level 2

The first level concentrates on building analytical skills in Finance such as; building businesses on models, projecting financial statements and making decisions from the models.

The second level focuses on modelling risk. This is an enhancement of Level 1, modellers will be taught how to conduct risk analysis through skills such as conducting Value at Risk and running simulations on Ms Excel and VBA.

Both levels enhance the ability to make decisions through the help of robust models. The training offers modelling fundamentals, best practises and strategies and by completing the program modellers are able to add Certified Financial Risk Modeller (CFRM) to their resumes showing evidence of competency in modelling.

FRM Learning Objectives
  1. Develop key expertise in building and working with Ms Excel functions, formulas, layouts and formatting such that modellers easily and quickly build scalable and robust financial models that are easy to use, extend, and incorporate into presentations as flexible tools for business decision-making
  2. Develop and review concepts of accounting for the financial statements including; the income statement, statement of financial position and the cash flow statement to understand the relationship between them and their linkage in a financial model.
  3. Develop and review finance concepts such as discounting cash flows, Net Present Value, Weighted Average Cost of Capital and Terminal Value.
  4. Develop modelling instincts so that modellers know what assumptions are reasonable and likely to result in dependable results, and what parameter ranges are realistic to account for invariable deviations of reality from models.
  5. Develop a framework that allows modellers to build financial projections, perform discounted cash flow valuations, perform sensitivity analyses, build graphs and allow others to use their models.
  6. Provide a sound groundwork for more advanced modelling courses such as for Leveraged Buyout Analyses, Mergers & Acquisitions, Equity or Debt issuance and other complex financial applications
  7. Practise risk management techniques by applying them in financial models and making informed decisions based on simulated results.
Target Audience

Professionals in corporate, financial and financial risk institutions who wish to raise their financial valuation skills to a superior level within a financial modelling context.

Prerequisites

A working knowledge of finance and accounting as well as a general awareness of Ms Excel and its usability

Program Structure

CFRM Level 1

  1. Spreadsheet Best Practise
  2. Working with Data
  3. Working with Financial Statements
  4. Projections of Financial Statements
  5. Understanding the Model
  6. Valuation
  7. Building Robustness
  8. Bond Analysis and Equity Valuation
  9. Data Presentation

CFRM Level 2

  1. Introduction to Risk
  2. Optimisation and Targeting
  3. Forecasting Methods
  4. Portfolio Modelling
  5. Regression Analysis
  6. Simulation Techniques
  7. Value at Risk