CRM56 study plan

Define the core risk vocabulary (exposure, inherent risk, residual risk, risk appetite, tolerance, capacity) in your own words and map each term to a governance document type.

Distinguish the three lines model from a committee-based governance structure and identify who owns risk decisions in each.

Build a risk taxonomy covering credit, market, liquidity, interest rate, operational, compliance, and legal risk with one example of each from a business you know.

Practice translating a stated risk appetite statement into two concrete operating limits and one escalation trigger.

Apply at least four identification techniques (process walkthrough, checklist, scenario workshop, historical loss review) to a single hypothetical business process and record the outputs.

Construct a 5x5 likelihood-impact matrix and place ten identified risks into it with written justification for each placement.

Compute expected loss, unexpected loss, and a simple value-at-risk figure from a supplied-style dataset you build yourself, showing each formula step.

Explain the difference between qualitative scoring and quantitative modeling and state when each is defensible.

Calculate duration, modified duration, and a basic gap analysis for a simple balance sheet you construct, and interpret the sign of the gap.

Compare the four treatment options (avoid, reduce, transfer, accept) and select a defensible treatment for each of your ten register risks.

Design two preventive and two detective controls for a chosen process, and specify the evidence each control would leave behind.

Evaluate a control's design versus its operating effectiveness and describe how you would test each.

Map the components of a major ERM framework to your own organization's actual practices and flag the three largest gaps.

Distinguish the roles of board, risk committee, CRO, and internal audit within an ERM framework and identify overlap risks.

Compute the five Cs-based credit assessment for two contrasting borrowers and justify a rating for each.

Calculate probability of default, exposure at default, and loss given default for a simple portfolio and derive expected loss.

Explain counterparty credit risk, wrong-way risk, and the purpose of collateral and netting agreements.

Compute and interpret a liquidity coverage ratio and a net stable funding ratio from a simplified balance sheet you assemble.

Distinguish trading-book from banking-book interest rate risk and identify the measurement approach appropriate to each.

Explain how a duration gap translates into earnings and economic value sensitivity, with a worked numeric example.

Select and justify two market-risk limits (sensitivity and stop-loss style) and describe the escalation path when breached.

Reassess your week 3 treatments in light of market and liquidity findings and revise at least one.

Classify ten operational loss events into Basel-style event categories and identify the failed control in each.

Distinguish compliance risk from legal risk and describe how regulatory change creates both.

Design a risk report for a board audience that fits on two pages and states position against appetite, top movements, and one forward-looking indicator.

Choose three key risk indicators and specify thresholds, data source, and owner for each.

Draft an escalation memo for a limit breach that states facts, impact, cause, and requested decision.

Diagnose three cultural failure patterns (silence, normalization of deviance, incentive misalignment) and propose one intervention for each.

Evaluate how compensation design and tone at the top shape risk-taking behavior in a specific scenario.

Apply a professional code of conduct to two ethically ambiguous situations and defend the chosen course of action.

Reconcile your earlier governance map with culture findings and revise one accountability assignment.

Re-take a timed 40-question mixed practice set across all ten domains and record accuracy by domain.

Re-derive from memory the expected loss, VaR, duration gap, LCR, and RAROC-style formulas without notes.

Rebuild your weakest domain's key concepts into a one-page condensed reference sheet.

Review every missed practice question and write the underlying rule each miss revealed.