2018 SchweserNotes
TM
Part
FRM
Exam Prep
®
Operational and Integrated
Risk Management
eBook 3
KAPLAN') SCHWESER
Getting Started
FRM® Exam Part II
Welcome
As the VP of Advanced Designations at Kaplan Schweser, I am pleased to have the
opportunity to help you prepare for the 2018 FRM® Exam. Getting an early start
on your study program is important for you to sufficiently
prepare, practice, and
perform on exam day. Proper planning will allow you to set aside enough time to
master the learning objectives in the Part II curriculum.
Now that you've received your SchweserNotes™, here's how to get started:
Step 1: Access Your Online Tools
Visit www.schweser.com/frm and log in to your online account using the
button located in the top navigation bar. After logging in, select the appropriate
part and proceed to the dashboard where you can access your online products.
The Kaplan Way
Acquire new
knowledge through
demonstration and
examples.
Step 2: Create a Study Plan
Create a study plan with the Schweser Study Calendar (located on the
Schweser dashboard). Then view the Candidate Resource Library on-demand
videos for an introduction to core concepts.
Step 3: Prepare and Practice
Read your SchweserNotes”
Our clear, concise study notes will help you
prepare for the exam. At the end
of each reading, you can answer the Concept Checker questions for better
understanding of the curriculum.
Attend a Weekly Class
Attend our Live Online Weekly Class or review the on-demand archives as
often as you like. Our expert faculty will guide you through the FRM curriculum
with a structured approach to help you
prepare for the exam. (See our
instruction packages to the right. Visit www.schweser.com/frm to order.)
Practice with SchweserPro™ QBank
Maximize your retention of important concepts and
practice answering
exam-style questions in the SchweserPro™ QBank and taking several Practice
Exams. Use Schweser's QuickSheet for continuous review on the go.
(Visit www.schweser.com/frm to order.)
Step 4: Final Review
A few weeks before the exam, make use of our Online Review Workshop
Package. Review key curriculum concepts in every topic,
perform by working
through demonstration problems, and
practice your exam techniques with
our 8-hour live Online Review Workshop. Use Schweser's Secret Sauce® for
convenient study on the go.
Step 5: Perform
As part of our Online Review Workshop Package, take a Schweser Mock Exam
to ensure you are ready to
perform on the actual FRM Exam. Put your skills and
knowledge to the test and gain confidence before the exam..
Again, thank you fortrusting Kaplan Schweser with your FRM Exam preparation!
Practice
9xl
-----
k
Apply new
knowledge through
simulation and
practice.
Evaluate mastery of
new knowledge and
identify achieved
outcomes.
FRM® Instruction Packages:
• PremiumPlus™ Package
• Premium Instruction Package
Live Instruction*:
Remember to join our Live Online Weekly Class.
Register online today at www.schweser.com/frm.
*Dates, times, and instructors subject to change
Sincerely,
Derek Burkett, CFA, FRM, CAIA
VP, Advanced Designations, Kaplan Schweser
MKT-005736
Contact us for questions about your study package, upgrading your package, purchasing additional study materials, or for additional informat i on:
www.schweser.com/frm | Toll-Free: 888.325.5072 | International: +1 608.779.8397
FRM Par t II Book 3: Ope r at io n a l
and Integrated Risk Management
Reading Assignments and Learning Object ives v
Oper at ional and Integrated Risk Management
37: Principles for the Sound Management of Operational Risk 1
38: Enterprise Risk Management: Theory and Practice 15
39: Observations on Developments in Risk Appetite Frameworks and IT
Infrastructure 25
4
0: Information Risk and Data Quality Management 35
41: OpRisk Data and Governance 43
42: External Loss Data 61
43: Capital Modeling 73
44: Standardized Measurement Approach for Operational Risk 86
45: Parametric Approaches (II): Extreme Value 96
46: Validating Rating Models 104
47: Model Risk 116
48: Risk Capital Attribution and Risk-Adjusted Performance Measurement 128
49: Range of Practices and Issues in Economic Capital Frameworks 146
50: Capital Planning at Large Bank Holding Companies: Supervisory
Expectations and Range of Current Practice 164
51: Repurchase Agreements and Financing 178
52: Estimating Liquidity Risks 192
53: Assessing the Quality of Risk Measures 206
54: Liquidity and Leverage 216
55: The Failure Mechanics of Dealer Banks 237
56: Stress Testing Banks 248
57: Guidance on Managing Outsourcing Risk 259
58: Basel I, Basel II, and Solvency II 267
59: Basel II.5, Basel III, and Other Post-Crisis Changes 290
60: Fundamental Review of the Trading Book 307
61: Sound Management of Risks Related to Money Laundering
and Financing of Terrorism 316
Sel f-Test: O per at ional and Integrated Risk Management 332
F
ormulas 338
I
ndex 343
©2018 Kaplan, Inc. Page iii
