Korea Financial Risk Manager study plan

Define risk governance roles (board, CRO, risk committee) and distinguish enterprise, market, credit, and operational risk using original examples

Explain the risk management process from identification through monitoring, and map each stage to a financial institution workflow

Compute mean, variance, standard deviation, covariance, and correlation by hand for a small dataset and interpret each statistic

Distinguish discrete from continuous distributions and identify which distribution fits loss frequency versus loss severity

Derive and apply the ordinary least squares estimator and interpret regression output (R-squared, t-statistics, standard errors)

Test hypotheses about a single coefficient and explain Type I and Type II errors in a risk context

Compute present and future values for single sums and annuities and apply them to bond pricing

Explain the properties of the normal, lognormal, Student-t, and binomial distributions and select the appropriate one for a given modeling problem

Price fixed-rate and floating-rate bonds and compute duration and convexity from a cash flow schedule

Explain the mechanics of forwards, futures, and swaps and calculate the payoff and value of each at settlement

Apply put-call parity and the binomial option pricing model to value a European option

Describe how interest rate parity and covered interest arbitrage link spot, forward, and money market rates

Estimate value at risk using the variance-covariance, historical simulation, and Monte Carlo methods on the same portfolio and compare results

Identify the limitations of each VaR method and explain expected shortfall as a coherent alternative

Interpret the Greeks (delta, gamma, vega, theta, rho) and explain how each changes option value

Map a corporate risk appetite statement to measurable limits and escalation triggers

Compute VaR and expected shortfall for a multi-asset portfolio and attribute risk to individual positions

Explain backtesting procedures and interpret the Basel traffic-light zones for VaR exceptions

Describe stress testing and scenario analysis and design one scenario for an interest rate shock

Distinguish volatility smiles and skews and explain what each implies about market expectations

Compute probability of default, loss given default, and expected loss for a loan portfolio

Explain structural (Merton) and reduced-form credit models and contrast their assumptions

Interpret credit ratings, migration matrices, and credit spreads as measures of default risk

Describe credit derivatives (CDS, total return swaps) and calculate a CDS payoff upon a credit event

Integrate market, credit, and operational risk into an enterprise-wide risk aggregation exercise

Explain regulatory capital frameworks at a conceptual level and distinguish economic from regulatory capital

Review weak areas flagged in earlier weeks and re-solve missed problems without notes

Summarize key model risk concepts including validation, backtesting, and governance of models

Complete two full-length timed practice exams under exam conditions and score each

Identify the three weakest topics from practice results and close each gap with targeted review

Recite core formulas from memory for VaR, duration, option pricing, regression, and expected loss

Build a final one-page quick-reference sheet limited to formulas and decision rules