FRM 104: Module 4 - Credit Risk Transfer Mechanisms скачать в хорошем качестве

FRM 104: Module 4 - Credit Risk Transfer Mechanisms

Access the complete recorded FRM® Level I training program, structured as per the GARP curriculum, on our website: 👉 https://www.bankingquest.com/courses/471 FRM Level 1 | Module 4: Credit Risk Transfer Mechanisms | GARP Certification This video forms part of a module-wise FRM® Level I training playlist aligned with the GARP FRM curriculum. Following the earlier modules that covered the fundamentals of risk management, financial risk management practices, and the governance of risk, Module 4 focuses on credit risk transfer mechanisms, a core area of risk management in banking and financial institutions. In this module, we compare the major types of credit derivatives, explaining how each instrument is designed to transfer credit risk between counterparties. The session evaluates the advantages and disadvantages of different credit derivatives, including their effectiveness in managing credit exposure and the risks arising from complexity, counterparty dependence, and market conditions. The training then explains traditional approaches to credit risk mitigation, highlighting non-derivative mechanisms that firms use to reduce credit risk within their portfolios. These concepts are discussed in a practical banking context, reinforcing how traditional and derivative-based tools complement each other. Building on insights from earlier modules, the session evaluates the role of credit derivatives during the 2007–2009 global financial crisis, examining how weaknesses in market structure, transparency, and governance amplified systemic risk. The discussion also covers key changes in the credit derivatives market following the crisis, including enhanced regulation, central clearing, and improved market discipline. The module further explains the securitization process, describing the structure and role of a Special Purpose Vehicle (SPV) and assessing the risk implications of different bank business models involved in securitized products. Emphasis is placed on understanding how credit risk is transferred, transformed, or retained across securitization structures. This session enables learners to integrate credit risk concepts, risk transfer instruments, and post-crisis market developments into a coherent understanding of modern credit risk management. This module is relevant for: • FRM Level I candidates • Banking and finance professionals • Credit risk and treasury teams • Risk managers and analysts • Students preparing for global risk certifications Keywords: FRM Level 1, GARP FRM, Credit Risk Transfer, Credit Derivatives, Credit Default Swaps, Securitization, SPV, Credit Risk Management, Financial Crisis 2008, BFSI Training Banking Quest Empowering Banking & Finance Professionals with Knowledge 🌐 www.bankingquest.com