Date post: | 23-Feb-2018 |
Category: |
Documents |
Upload: | antonio-negreiros-fernandes |
View: | 217 times |
Download: | 0 times |
of 40
7/24/2019 Certification Programme Knowledge Only v1
1/40
1
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
European Certification for Risk Managers
Body of Knowledge
7/24/2019 Certification Programme Knowledge Only v1
2/40
2
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
CONTENT
Program Design: Blocks ...................................................................... 5
Block Description ............................................................................... 7
Block 00: Business Basis for Risk Manager ........................................................... 7
Block 01: Essentials of Risk Management ............................................................. 8
Block 02: Risk Assessment .................................................................................... 9
Block 03: Risk Treatment I .................................................................................. 10
Block 04: Risk Treatment II ................................................................................. 11
Block 05: Risk Communication, Monitoring & Review ........................................ 12
Block 06: Specific Risk Management Topics ....................................................... 13
Learning Outcomes .......................................................................... 14
Block 00: Business Basis for Risk Manager ......................................................... 14
TOPIC 1: Essentials Of Economics And International Business ........................................................................... 14
TOPIC 2: Basic Statistics & Financial Mathematics ............................................................................................. 14
TOPIC 3: Basic Corporate Finance ...................................................................................................................... 14
TOPIC 4: Financial Statements ............................................................................................................................ 15
TOPIC 5: Basic of General Management.............................................................................................................. 15
TOPIC 6: Legal & Contract Management ............................................................................................................. 16
TOPIC 7: Basic Marketing .................................................................................................................................... 16
TOPIC 8: Communication .................................................................................................................................... 16
TOPIC 9: Information Technology ....................................................................................................................... 17
TOPIC 10: Change Management ......................................................................................................................... 17
Block 01: Essentials of Risk Management (COMPULSORY) ................................ 18
7/24/2019 Certification Programme Knowledge Only v1
3/40
3
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
TOPIC 1: Introduction to FERMA Risk Manager Certification (4 Pillars System) ................................................ 18
TOPIC 2: Principles and Aims of Enterprise-Wide Risk Management (Includes Ethics) ..................................... 19
TOPIC 3: Risk Management Frameworks and Standards ................................................................................... 19
TOPIC 4: RM In The Organization: Governance, Context, Internal Audit, Compliance (3 Lines Of Defense),Internal Control, Risk Culture, Policy ................................................................................................................... 19
TOPIC 5: Company Strategy, Objectives, Responsibilities, Structure, Program Etc. ........................................ 20
TOPIC 6: Risk Appetite, Risk Tolerance, Risk Attitude, Risk Capacity, Limits ....................................................... 20
TOPIC 7: Types and Impact of Risk On Organizations.......................................................................................... 20
TOPIC 8: Risk management process: identification, assessment, treatment, control, financing ........................ 21
TOPIC 9: Added Value, Cost and Benefits of Risk Management ......................................................................... 21
Block 02: Risk Assessment ................................................................................. 22
TOPIC 1: Risk & Uncertainty and Impact On Strategy ........................................................................................ 22
TOPIC 2: Risk Identification and Classification ................................................................................................... 23
TOPIC 3: Risk Identification Techniques ............................................................................................................. 23
TOPIC 4: Qualitative Risk Analysis Tools and Techniques................................................................................... 24
TOPIC 5: Quantitative Risk Analysis Tools and Techniques ................................................................................. 24
TOPIC 6: Risk Consequence, Likelihood and Severity .......................................................................................... 24
TOPIC 7: Risk Modelling ....................................................................................................................................... 24
TOPIC 8: Risk Register, Risk Matrix, Risk Profile, Risk Map ................................................................................. 25
Block 03: Risk Treatment I ................................................................................. 26
TOPIC 1: General Aspects (Company Risk Appetite, Inherent and Current Level of Risk; Risk Tolerance,
Treatment, Transfer and Termination, Etc.) ........................................................................................................ 26
TOPIC 2: Types of Risk Treatment/Response ..................................................................................................... 26
TOPIC 3: Risk Control Techniques: Loss Prevention, Claims Management and Opportunities....................... 26
TOPIC 4: General /Financial Risk-Related Controls............................................................................................. 27
TOPIC 5: Business Continuity: Emergency and Crisis Management .................................................................... 27
TOPIC 6: Other Techniques ................................................................................................................................. 27
7/24/2019 Certification Programme Knowledge Only v1
4/40
4
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 04: Risk Treatment II ................................................................................ 28
TOPIC 1: Risk Financing Techniques ................................................................................................................... 28
TOPIC 2: Insurance Sector .................................................................................................................................. 28
TOPIC 3: Insurance ............................................................................................................................................. 29
TOPIC 4: Reinsurance ......................................................................................................................................... 29
TOPIC 5: Captive (Re) Insurance Companies ....................................................................................................... 30
TOPIC 6: Alternative Risk Transfer Methods ....................................................................................................... 30
TOPIC 7: International Insurance Market ............................................................................................................ 30
Block 05: Risk Communication, Monitoring & Review ....................................... 31
TOPIC 1: Risk Culture and the Human Factor ..................................................................................................... 31
TOPIC 2: Corporate Social Responsibility ........................................................................................................... 31
TOPIC 3: Communication, Consultation, Corporate Governance & Role of the Board ...................................... 32
TOPIC 4: Risk Management Information Systems .............................................................................................. 33
TOPIC 5: Risk Monitoring ..................................................................................................................................... 33
TOPIC 6: Risk Review ........................................................................................................................................... 34
TOPIC 7: Risk Assurance ...................................................................................................................................... 34
TOPIC 9: Risk Reporting ....................................................................................................................................... 34
Block 06: Specific Risk Management Topics ...................................................... 36
TOPIC 1: Operational Risk Management ............................................................................................................ 36
TOPIC 2: Supply Chain Risk Management........................................................................................................... 37
TOPIC 3: Incident and Claims Management ....................................................................................................... 38
TOPIC 4: Portfolio, Programs and Project Risk Management ............................................................................. 38
TOPIC 5: Mergers & Acquisitions ......................................................................................................................... 38
TOPIC 6: Business Continuity: Emergency & Crisis Management ....................................................................... 39
TOPIC 7: Emerging and Future Risks.................................................................................................................... 39
TOPIC 8: Other Topics .......................................................................................................................................... 39
7/24/2019 Certification Programme Knowledge Only v1
5/40
5
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
This document sets the core knowledge syllabus for the "FERMA Certification in Risk Management". The
aim is to analyze the academic and professional conditions that candidates, organizations and individuals
must cover to get the FERMA Accreditation and FERMA Certification in Risk Management. To set this
Body of Knowledge a structure of 6 different Blocks have been designed by the members of this pillar 1
team.
For analysis of these Blocks we have created a series of tables in which the objectives of the domain, the
topics of each Block, the inputs and outputs as well as the learning outcomes will be described.
Subsequently, these Blocks and their topics and chapters will also be developed in the future in more
detail in tables as a core syllabus that will cover the most important aspects as well as the available
literature.
This work was performed by a team of 8 people as representatives from different national associations,
which has allowed to cover and collect a wide variety opinions and possibilities, making the work that is
presented be representative of the views of all.
FERMA thanks the members of this Pillar 1 for their work and effort in completing this document and the
ongoing process.
AMRAE Franois Malan SI.RISK Klemen Potisek
SWERMA Torgny BogrdeFERMA
AGERS
Isabel Martnez Torre-
Enciso
RUSRISK Anna KorbutFERMA
BELRIMMarie Gemma Dequae
POLRISK Sawomir Pijanowski
Program Design: Blocks
FERMA is designing a program for Accreditation and Certification to cover the overall and comprehensive
knowledge base with which Risk Managershould be familiar in their professional career.
FERMA Certificationincludes the knowledge level needed to start in the world of risk management as
well as other more strategic and specific knowledge that will provide the candidate the ability to
successfully perform both in the junior and senior part of their professional career. Along with this
knowledge, for obtaining FERMA Certification,candidates must demonstrate a number of years of
experience as well as achieving the pillars of ethics and CPD at levels to be determined.
7/24/2019 Certification Programme Knowledge Only v1
6/40
6
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
The program of this body of knowledge is shown in the next table:
BLOCK N 00: Business basis for Risk Manager
BLOCK N 01: Essentials of Risk Management
BLOCK N 02: Risk Assessment
BLOCK N 03: Risk Treatment
BLOCK N 04: Risk Treatment II
BLOCK N 05: Risk Communication, Monitoring & Review
BLOCK N06: Specific Risk Management Topics
Within pillar 1, each Block will have a development at different stages, from the most general to the
most specific, to what has been thought in the following names: Pillar, Block, Topic and Chapter.
An example would be:
PILLAR: KNOWLEDGE
BLOCK: BLOCK 2: RISK ASSESSMENT
TOPIC: 2. 3. RISK ASSESSMENT, VALUATION AND QUANTIFICATION
TECHNIQUES
CHAPTER: 2.3.2. Basic qualitative risk analysis tools and techniques
By the time team 1 has worked on the structure of the Blocks and the topics of each Block. The
development of the chapter analysis will be performed at a later stage.
This part of the document distributed body of knowledge in different Blocks with reference only to
highlight topics, without going into the content or specification thereof. In this section, as well as for the
further development of the core syllabus, it was decided to use ISO Terminology but with an open
structure to other frameworks and professional standardsin order to include all the knowledge
necessary for professional development whether or not included in standards.
The structure of Blocks has been designed following the risk management process, starting with a Block
00 on the business basis of knowledge that a Risk Manager. A margin of freedom should be given to
National Associations to organise these general knowledge.
Block 1 on the key concepts for the risk manager and the professional practice of risk management
introduces the risk manager in the context of the organization and the concepts of risk and enables the
7/24/2019 Certification Programme Knowledge Only v1
7/40
7
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
further development of the process. Then is analyzed very deeply in different Blocks (2, 3 and 4) the
process of identification, assessment, control and risk financing with very specific and detailed topics. A
fifth Block included more strategic and organizational topics of risk management. To complete the
syllabus a Block dedicated to other topics is introduced.
Block Description
Each Block listed is described in the following tables indicating its objectives, its input and output and the
topics that should be covered.
Block 00: Business Basis for Risk Manager
AIM: The aim of this Block is to allow applicants to the FERMA European certification to demonstrate their
knowledge in a comprehensive range of basic knowledge, skills and techniques important for the development of
the risk manager activities and profession.
INPUT: All knowledge that candidates will have in advance, will be a good starting point for the development of this
Block as well as for work in risk management.
OUTPUT:This Block is considered as an initiation Block that will allow FERMA CERTIFICATION applicantsto align
their knowledge base and managerial skills for the further development in the other Certificate Blocks.
COVERAGE:
1. Essentials Of Business And Economics
2. Basic Statistics & Financial Mathematics
3. Basic Corporate Finance
4. Financial Statements
5. Basic Of General Management
6. Legal & Contract Management
7. Basic Marketing
8. Communication
9. Information Technology & Computer Skills
10. Change Management
COMMENTS: This Block attempts to align knowledge and skills of the candidates by reviewing and deepening the
general and fundamental aspects of business management in the broadest sense. The idea is to train candidates
with essential management tools for professional development that bring these professionals at the highest level
of the organization. At the same time individuals should acquire strong computer skills.
7/24/2019 Certification Programme Knowledge Only v1
8/40
8
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 01: Essentials of Risk Management
AIM: This Block provides general knowledge for applicants involved in risk management, designing the broader
frame of RM within the organization.
The objective is to understand the importance of principles, framework and the context for achieving an efficientand coherent risk management process that creates and protects values.
INPUT: Standards such as ISO 31000, COSO ERM, FERMA, ANZ, Cadbury, etc.
OUTPUT: get knowledge of the framework, standards, context and environment of risk management, as
fundament to build following Blocks on.
COVERAGE:
1.Introduction To FERMA Risk Manager Certification (4 Pillars System)
2.Principles And Aims Of Enterprise-Wide Risk Management (Includes Ethics)3.Risk Management Frameworks And Standards
4.RM In The Organization: Governance, Context, Internal Audit, Compliance (3 Lines Of Defense),
Internal Control, Risk Culture, Policy
5.Company Strategy, Objectives, Responsibilities, Structure, Program Etc.
6.Risk Appetite, Risk Tolerance, Risk Attitude, Risk Capacity, Limits
7.Types And Impact Of Risk On Organizations
8.Risk Management Process: Identification, Assessment, Treatment, Control, Financing
9.Added Value, Cost And Benefits Of Risk Management
COMMENTS: The Block can be completed with national regulation or standards and local specificities.
7/24/2019 Certification Programme Knowledge Only v1
9/40
9
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 02: Risk Assessment
AIM:This Block revises the full process of identification, assessment and evaluation of risk in an organization. This
Block also covers analysis tools and techniques.
INPUT: RM Frameworks, Statistical Methods and Modelling, Quantitative Assessment and Forecasting Methods,Probability Analysis, Financial Analysis, Security Analysisetc
OUTPUT: Ability to comprehensively identify and assess risk of all types while employing theoretical valuation and
forecasting methods.
COVERAGE:
1. Risk & Uncertainty And Impact On Strategy
2. Risk Identification And Classification
3. Risk Evaluation Techniques
4. Qualitative Risk Analysis Tools And Techniques5. Quantitative Risk Analysis Tools And Techniques
6. Risk Consequence, Likelihood And Severity
7. Risk Modelling
8. Risk Register, Risk Matrix, Risk Profile
9. Others
COMMENTS: the main outcome of this Block will be the capability to identify, compile, analyze, evaluate and
measure the exposures to probable risks, accidental risks, extraordinary risks and business losses facing by
individuals and organizations. Understanding and assessing all general and specific types of risk should be covered
including: emerging risks and cyber, social media, climate change, reputation, regulatory, supply chain, financial,
legal, property, personnel, environmental, fraud, etc.
7/24/2019 Certification Programme Knowledge Only v1
10/40
10
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 03: Risk Treatment I
AIM: This Block provides mechanisms and tools necessary for the treatment of risks and losses, with special
emphasis on control / reduction measures. The purpose is to understand the nature, purpose, and steps involved in
risk control.
INPUT: Economic and regulatory capital concepts, environmental and social awareness, regulatory aspects, capital
adequacy, economics and capability of risk assumption and transfer, operations management, HRM, limit setting,
compliance principles, principles of crisis management, managerial accounting concepts, quality control, general
approaches to BCP (business continuity planning), basic knowledge on technical equipment and tools to prevent
fire, flood, natural hazardsetc.
OUTPUT: Decision making framework on risk assumption, treatment and/or transfer, response action planning
related to IT risks, BI (business interruption), crisis, regulatory authorities interaction management.
COVERAGE:
1. General Aspects (Company Risk Appetite, Inherent And Current Level Of Risk; Risk Tolerance,
Treatment, Transfer And Termination, Etc.)
2. Types Of Risk Treatment/Response
3. Risk Control Techniques: Loss Prevention, Claims Management and opportunities
4. General /Financial Risk-Related Controls
5. Business Continuity Management: Emergency and Crisis Management
6. Other Techniques
COMMENTS:Applicants must utilize the analysis to develop loss prevention & protection strategies and to engage
business units. They should manage different type and extent of loss prevention & protection efforts and monitor
activity and results. FERMA Certification candidates must understand a wide range of risk control techniques, as
prevention, protection or reduction.
7/24/2019 Certification Programme Knowledge Only v1
11/40
11
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 04: Risk Treatment II
AIM: The important part of risk treatment process is risk sharing, risk financing process which purpose is to
understand the nature, purpose, and steps involved in risk financing (retention and transfer). This Block develops
an understanding of basic financing techniques, the insurance principles and the primary benefits insurance
contributes to society.
INPUT: Actuarial science; insurance economics; procurement principles; legal, economic and operations
perspective of captive insurance companies, reinsurance market, ; principles of financial instruments; investment
banking sector; use of fundamental and technical analysis in decision making process; stress testing, scenario
analysis, valuation and bookkeeping of insurance instruments.
OUTPUT: Economics based decision making framework in risk transfer; best practice in concluding risk transfer
arrangements and claims management (including internal rules and procedures set-up); knowledge on when and
how to get an insurance and also when and how to get out.
COVERAGE:
1. Risk Financing Techniques
2. Insurance Sector And Solutions
3. Insurance
4. Reinsurance
5. Captive (Re-)Insurance Companies
6. Alternative Risk Transfer Methods, Products/Hedging Instruments
7. International Insurance Market
COMMENTS: FERMA Certificate applicants should understand techniques for financing retention, transfer,
insurance or the alternative risk transfer instruments. They should understand the criteria for making risk financing
decisions as well as the development of risk financing strategies and the selection, implementation and monitoring
of risk financing techniques and should know legal concepts and the legal environment in which insurance
operates. They will know the concepts of risk and its relationship to insurance as well as the role of risk
management with the company insurance policy. They will be able to develop alternative financing techniques as
insurance, self-insurance, retrospective rating, reinsurance, or captive insurance.
7/24/2019 Certification Programme Knowledge Only v1
12/40
12
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 05: Risk Communication, Monitoring & Review
AIM: This Block allows candidates to get the necessary skills in risk communication and consultation with
stakeholders and understanding of the importance of a sound risk culture in order to get reliable risk management
that encompasses all aspects of an organizations risk. This Block also covers the components of monitoring and
review such as coverage, risk reporting design, frequency, recipients, etc. as critical parts of the risk management
process.
INPUT: Basic knowledge on company culture, relations with stakeholders, risk information, value added decision
making process
OUTPUT: To know how to produce a risk report and action plan to the board of a company.
COVERAGE:
1. Risk Culture and the Human Factor
2. Corporate Social Responsibility
3. Communication, Consultation, Corporate Governance & Role Of The Board
4. Risk Management Information Systems (RMIS)
5. Risk Monitoring
6. Risk Review
7. Risk Assurance
8. Risk Reporting
COMMENTS: Within the company assurance environment and policy, candidates should know how to get a
specific level of satisfaction with respect to the reliability of the risk and risk management information and
documentation provided.
7/24/2019 Certification Programme Knowledge Only v1
13/40
13
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Block 06: Specific Risk Management Topics
AIM:The goal of this Block is to explore important specific business areas related to risk and risk management,
such as Business Continuity, incident and claims management or crisis management, and the link to strategic
management.
INPUT:Basic technical knowledge about IT (hardware / software, Cyber risks), merger and acquisition process (due
diligence and integration aspects), loss of profit evaluation (gross earning / gross profit), analysis of financial
statements.
OUTPUT: To be knowledgeable about theories, best practices and trends in the different topics covered in this
Block.
COVERAGE:
1. Operational Risk Management
2. Supply Chain Risk Management
3. Incident And Claims Management
4. Portfolio, Programs And Project Risk Management
5. Mergers & Acquisitions
6. Business Continuity: Emergency and Crisis Management
7. Emerging And Future Risks
8. Other Topics (projects risk management, credit risk management, )
COMMENTS: Candidates should know concrete tools for the management of specific risks such as the operational,
supply chain, incident and claims as well as the relations of risk management with the related areas of businesscontinuity and crisis management. As all organizations want to grow it is important to have knowledge of M&A and
work in projects risk management.
7/24/2019 Certification Programme Knowledge Only v1
14/40
14
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Learning Outcomes
Block 00: Business Basis for Risk Manager
TOPIC 1: Essentials of Economics and International Business
CHAPTER LEARNING OUTCOME
Macroeconomics Measuring national income and price
Equilibrium in the real market: Consumption, Investment
Equilibrium in the money market
Equilibrium in economy and aggregate demand
Macro Dynamics Inflation, Economic growth, Business cycles
International Economy And Foreign Exchange
Market
Open Macroeconomics, Foreign Exchange Rate
Principles Of Managerial Economics Insights into how market economies function: what determines the price of
a good and the quantities produced and consumed, how government
policies and other external events affect prices and quantities, in which
cases market outcomes are efficient and in which cases they are not; main
market types (perfect competition, monopoly, monopolistic competition
and oligopoly)
TOPIC 2: Basic Statistics & Financial Mathematics
CHAPTER LEARNING OUTCOME
Basics In Statistics Variables, population, samples, measurement of central tendency
Probability Distributions And Descriptive
Statistics
Regression and correlation, probability, variance and standard deviation,
distributions
Hypothesis Testing Estimations, hypothesis testing, hypothesis test
Time Value Of Money Simple and Compound Interest, Effective Interest Rates, Future value,
Present value, Annuities, Amortization
TOPIC 3: Basic Corporate Finance
CHAPTER LEARNING OUTCOME
Fundamentals Of Corporate Finance Goals of Corporate Finance, Finance Function and the Firms Objectives,
Corporate Governance
Principles Of Valuation And Discounted Cash
Flow
What is value? The valuation process, Value creation for shareholders What
is cash flow? Basics of cash flow analysis; Terminal values
7/24/2019 Certification Programme Knowledge Only v1
15/40
15
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Capital Investment Decisions, Cost Of Capital And
CAPM
Investment Decisions: Payback rules, Discounting payback period method,
IRR (internal rate of return), NPV (net present value)
Cost of capital: Cost of equity capital, Cost of debt capital, WACC (weighted
average cost of capital)
CAPM (Capital Asset Pricing Model): Measuring beta, Risk free rate, Risk
adjusted discount rates
Long-Term Financial Policy Investments decisionProject evaluation: Method for ranking investment proposals, Capital
resource rationing, Common pitfalls (e.g. Sunk costs,
depreciation)
Short-Term Financial Policy Short-term financing: Working capital, Short term financing
Cash management and Credit management
Capital Structure And Dividend Policy Leverage and the value of the firm
Dividend policy
Equity And Bond Valuation Valuation Model of Common Stock, Bond Yield Measures, Term Structure
of Interest Rates, Bond Price Analysis, Risk Measurement, the issue process
TOPIC 4: Financial Statements
CHAPTER LEARNING OUTCOME
Financial Accounting, Financial Reporting And
Statement Analysis
Basic financial accounting, Financial statements: Balance sheet, Income
statement, Statement of cash flows, Statement of changes in equity
Financial reporting: Uses of financial statements, International differences
in accounting
Framework For The Preparation And
Presentation Of Financial Statements
Objective of financial Statements, Fundamental definitions (asset,
liability, equity, revenue, expense), The cash flow statement , Criteria for
revenues recognition, Measurement of revenues
Assets, Liabilities And Shareholders Equity Assets: Property, plant and equipment, Investment property, Intangible
assets, Inventories, Financial instruments
Liabilities: Bonds, Hybrid securities, Leases, Retirement benefits, Provisions
Shareholders Equities
Profitability And Risk Analysis Profitability analysis: ROA (return on assets), ROCE (return on capital
employed)
Risk Analysis: Short term liquidity risk, Long term solvency risk
TOPIC 5: Basic of General Management
CHAPTER LEARNING OUTCOME
Management Policy And Process Management of business processes in order to optimise corporate
performance: BPM (business process management) total quality
management, continuous improvement process
Introduction To Business Information Systems ICT strategy, IT architecture and the design and use of ICT systems. Given
the growth and importance of large business information systems that are
able to register and process immense data sets, the use of ERP systems and
Business Intelligence is also important.
7/24/2019 Certification Programme Knowledge Only v1
16/40
16
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Principles Of Organizational Behaviour Organizational behaviour involves the study of how, why and what people
think, feel, and do in organizations (individual & group behaviour)
Leadership, Values, And Corporate Responsibility Self-management & develop management skills, understand leadership vs.
management, setting expectations & accountabilities, managing conflict
and change, cultural differences,
Principles Of Human Research Management A broad and sound basic knowledge about HRM, which allows students to
perform better as subordinates or supervisors in their future organizations.
TOPIC 6: Legal & Contract Management
CHAPTER LEARNING OUTCOME
Principles Of Law Introduction to legal science, basic structures of legal systems, legal
terminology, and legal reasoning
Society And Enterprise & Corporate Social
Responsibility
Understand issues and relationships related with risk
Introduction To International And European Law Capture and follow the evolution of the legal environment where you do
business
Compliance Learn to know how to build a management process which identify the
applicable requirements (as defined in laws, regulations, contracts,
strategies and policies) in order to assess the state of compliance
Ethics Learn to know about the principles of conduct governing an individual or a
groupbased on moral duty and obligation based on what is good and bad
TOPIC 7: Basic Marketing
CHAPTER LEARNING OUTCOME
Understanding the Role of Marketing Define what marketing is and how it fits into the organization, marketing
system exchange map, marketing-oriented companies, models of consumer
decision making
Marketing Strategies Strategic approaches to the planning process, mass marketing versus
segmentation marketing, segments and the targeting process,
differentiated positioning strategy, Components of the Marketing Mix
TOPIC 8: Communication
CHAPTER LEARNING OUTCOME
Communication Skills For Managers Communicate to influence and inspire, team building, virtual team
communication
Communication Tools For Managers Description of different systems and tools: visio conf, intranet, internal
7/24/2019 Certification Programme Knowledge Only v1
17/40
17
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
medias, information letters
TOPIC 9: Information Technology
CHAPTER LEARNING OUTCOME
OS (Operating Systems) Windows operating system to develop foundational skills in the areas of file
management, word processing, spreadsheets, presentation software, and
emerging technologies. Projects emphasize problem solving, data analysis,
and the use of Internet communication tools.
ICT infrastructure Insight into the structure and characteristics of computer infrastructure,
such as servers and clients, storage and networking equipment. This is
necessary to be able to develop a general architecture of ICT infrastructure.
TOPIC 10: Change Management
CHAPTER LEARNING OUTCOME
Psychology of Change Foundational principles for managing change, best practices in change
management, Fundamentals of managing the people side of change
Change Management Process Process for Managing Change, Organizational Change Competency,
Connecting Change Management to Business Projects, Change
Management Strategy, Change Management Team
Managing Change Communication Plan, Sponsor Roadmap, Coaching Plan, Resistance
Management Plan, Training Plan, Master Change Plan
BIBLIOGRAFY, READING, LEARNING MATERIALS
TOPIC 1: Essentials of Economics and International Business
BLANCHARD O. (2011), Macroeconomics, Prentice Hall, 5th
edition
JAMES COLLINS,Good to Great
TOPIC 2: Basic Statistics & Financial Mathematics
Essentials of Statistics downloadable from www.bookboon.com
Statistics for Business and Economics downloadable from www.bookboon.com
Essentials of Statistics: exercises downloadable from www.bookboon.com
TOPIC 3: Basic Corporate Finance
BREALEY AND MYERS AND ALLEN (2013), Principle of Corporate Finance, McGraw-Hill, International, 11th
edition
BODIE, KANE AND MARCUS (2013), Investment, Irwin, 1996, 10th
edition
7/24/2019 Certification Programme Knowledge Only v1
18/40
18
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
The capital asset pricing model (CAPM) downloadable from www.bookboon.com
TOPIC 4: Financial statements:
PENMAN Stephen, (2012), Financial statement analysis and security valuation, McGraw-Hill, International edition, 5th
edition
TOPIC 5: Basic of General Management:
Management basics: downloadable from www.bookboon.com
TOPIC 6: Legal & Contract management
Contract lifecycle management downloadable from www.bookboon.com
TOPIC 7: Basic Marketing
Essentials of Marketing downloadable from www.bookboon.com
TOPIC 8: Communication
Effective communication skills downloadable fromwww.bookboon.com
Advanced communication skills downloadable fromwww.bookboon.com
TOPIC 9: Information Technology
IT strategy and technology downloadable fromwww.bookboon.com
TOPIC 10: Change Management
CAMERON, E. & GREEN, M. (2012), Making Sense of Change Management, Kogan Page Ltd, 3rd edition.
Change management downloadable from www.bookboon.com
Block 01: Essentials of Risk Management (COMPULSORY)
TOPIC 1: Introduction to FERMA Risk Manager Certification (4 Pillars System)
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
Risk Management Associations Description, history, how it works, relations on national and
international levelsX X
FERMA To know the national association of the country in which
the Passport is granted (for certification : the country whereX X
http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/7/24/2019 Certification Programme Knowledge Only v1
19/40
19
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
the RM is located)
Fundamental of FERMA organization and objectives
The 4 Pillars Of Certification Knowing the 4 pillars (Knowledge, Experience, CPD & Ethics) X X
The 2 Levels Of Certification To know the difference and the way of obtaining (andkeeping) the passport or the advanced level
X X
TOPIC 2: Principles and Aims of Enterprise-Wide Risk Management (Includes Ethics)
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
Principles of ERM Principles could be divided into what should be the
characteristics of RM and what it should deliverX X
Aim of ERM To understand the different aims of each organization:
compliance, assurance, decision making, efficiency of
operations, effectiveness pf processes or efficacy of
strategy
X X
TOPIC 3: Risk Management Frameworks and Standards
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
COSO Erm From COSO 1 to COSO 2 (origin, objectives, , contents)X X
ISO 31000 Description of ISO 31000 X X
Local Framework Framework of the country in which the Passport is granted
(for certification : the country where the RM is located)X X
Other International Standards FERMA framework, IRM standards, ISO 31010/31004/ COSO
III X
Corporate Internal Standards Some companies use their own standards (linked to the
culture and the maturity of the company)X
TOPIC 4: RM in the Organization: Governance, Context, Internal Audit, Compliance (3 Lines Of Defense),
Internal Control, Risk Culture, Policy
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
Historical Background Origin of RM in the US, Europe, in the country in which the
Passport is granted (for certification : the country where theX X
7/24/2019 Certification Programme Knowledge Only v1
20/40
20
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
RM is located)
RM In The Company Position, most common attachment X X
3 Lines Of Defense Definition 1st
(operational management)t , 2n
(RM, internal control)
3rd
(internal and external audit)X X
3 Lines Operations X
Relations With Other Departments Relations with Legal, Quality, Safety, Environment
DepartmentsX
Risk Aware Culture Implementation of a risk culture within the organization
Human and culture factorsX
TOPIC 5: Company Strategy, Objectives, Responsibilities, Structure, Program Etc.
CHAPTER LEARNING OUTCOMEPassport
Level (X)
Advance
Level (X)
RM Responsibilities Board mandate and commitment, scope of the initiative,
RM responsibilities within the organizationX
Company Framework For Managing Risk Description of risk architecture, risk strategy, risk protocols
& RM policyX
Implementation Of The Framework Tools to implement framework and RM processes X
Monitor, Review & Improve The Framework Tools to monitor the framework X
TOPIC 6: Risk Appetite, Risk Tolerance, Risk Attitude, Risk Capacity, Limits
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
Risk Strategy Definition Risk appetite, risk tolerance, risk attitude, risk capacity,
limits, CEO involvement
HOW? Tools spreadsheets which can be used
X X
Risk Strategy Applicability Risk appetite, risk tolerance, risk attitude, risk capacity,
limits, CEO involvement
WHY?
X X
TOPIC 7: Types and Impact of Risk On Organizations
CHAPTER LEARNING OUTCOME Passport Advanced
7/24/2019 Certification Programme Knowledge Only v1
21/40
21
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Level (X) Level (X)
Definition Of Risk Various definitions : a threat or an opportunity the origin
or the consequence
Need to be stated by each Company and communicated
X X
Types Of Risks Internal or external risks, strategic or operational risks, HR,
legal X X
Impact Of Risks Financial or non-financial impact (image) X X
Recording Risk Assessments Risk register, spreadsheet, computer-based system X
TOPIC 8: Risk management process: identification, assessment, treatment, control, financing
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
Risk Management Process Different types of process ex: ISO 3100 (7Rs & 4Ts), FERMA,
local standardsX X
Identification & Assessment (Definition) Essential of risk assessment (methodology, Top-down,
bottom-up approach, risk matrix)X X
Reduction & Control (Definition) Essential of risk control (or mitigation), risk avoidance or
reduction (including loss prevention), risk transfer
(contractual)and opportunities
X X
Risk Financing (Definition) Essential of risk financing : retention, insurance, captives,
ART
X X
Feedback Mechanisms Essential of monitoring and review of performance,
communication and consultationX
TOPIC 9: Added Value, Cost and Benefits of Risk Management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advance
Level (X)
Cost of risk Total Cost of Risk (TCOR): calculation, use X
Added value and benefits of Risk Management Calculation of the optimal risk/return profile X
BIBLIOGRAFY, READING, LEARNING MATERIALS
7/24/2019 Certification Programme Knowledge Only v1
22/40
22
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Airmic Alarm 2010, Understanding and Communicating Risk Appetite, IRM Risk Appetite, IRM Extended
Enterprise: Managing risk in complex 21st century organisations, Executive Summary COSO Board Position 09,
Framework of Board Oversight of Enterprise Risks by CA.
COSO: Internal Control - Integrated Framework: Executive Summary, Framework and Appendices, and
Illustrative Tools for Assessing Effectiveness of a System of Internal Control
IRM white paper on Risk Culture
ICGN Corporate Risk Oversight Guidelines
ERM shaping the Risk Revolution by Mckinsey and RMA
HOPKIN PAUL (2010), Fundamentals of Risk Management
Protiviti ERM guidance,
FREDERICK FUNSTON STEPHEN WAGNER (2010), Surviving and Thriving in Uncertainty: Creating the Risk
Intelligent Enterprise, Wiley
Enterprise risk management,downloadable fromwww.bookboon.com
Corporate governance and risk management, downloadable fromwww.bookboon.com
Results of various surveys such as World Economic Forum (annual Global Risks report).
Presentations of best practicescase studies. Laws and regulations such as KONTRAG, Sarbanes Oxley, Dodd
Frank Act, GL 44, and EU: 8th
company law directive, Solvency II, Basel III, etc.
Block 02: Risk Assessment
TOPIC 1: Risk & Uncertainty and Impact On Strategy
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Risk and Risk Management Definitions Understanding risks and acquiring fundamentals of risk
identification; acquiring ability to gather the necessaryinternal/external data and information for risk modelling and their
validation
X X
Uncertainty And likelihood Acquiring basis for risk quantification (likelihood => risks;
uncertainty => black swans?) and ways to handle such issuesX X
http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/http://www.bookboon.com/7/24/2019 Certification Programme Knowledge Only v1
23/40
23
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Risk Influenced Strategy Principles of risk based strategy setting and adjustment
Integration of strategic management and risk management
X
Risk Policy Being able to formulate risk policy taking into account companys
strategic goals, risk attitude & appetite, its industry, market; RM
should understand why and how the policy should be reviewed andadjusted to serve its purpose
X
Risk Tactics Being able to decide on proper and timely tactical adjustments to
adopted risk strategy within changed circumstances, and
communicate the necessary changes incl. exit strategy) in
comparison with the base scenario (quantitatively and qualitatively)
X
TOPIC 2: Risk Identification and Classification
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Risk Classification(S) Becoming aware of underlying reasons for various risk classification
approaches (origin, impact, subject, industry, etc.); proper risk
identification and classification within organisation
X X
Description Of Main Risks Acquiring overview of the nature and impact of financial, quality,
liability, asset, environmental, personnel, transport, IT, intellectual
property, criminal, etc. risks
X X
Identification Of Main Risks Competence to identify risks which may significantly impact or
impair an organisations ability to perform and/or survive (going
concern).
X X
Correlated And Consequential Risks Acquiring basis for comprehensive assessment of net risksX
Classification Of Loss Exposure Understanding the nature of losses; basis of management attention
prioritization and adequate approach to risk treatment (avoidance,
reduction, retention, transfer)
X
TOPIC 3: Risk Identification Techniques
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Methods Of Identifying Risks And Loss
Exposure (Introduction)
Brainstorming, checklists, surveys, loss histories, financial
statements, etc.X X
Methods Of Identifying Risks And Loss
Exposure (Advanced)
(Strategic) objectives based, Scenario analysis, via identification of
risk sources (taxonomy based), FMEA (failure mode and effect
analysis), incident analysis,
X
7/24/2019 Certification Programme Knowledge Only v1
24/40
24
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Other Methods ISO 31010, COSO ERM, etc. X
TOPIC 4: Qualitative Risk Analysis Tools and Techniques
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Qualitative Methods Brainstorming, checklists, surveys, external data & information, etc. X X
Qualitative Risk Analysis Tools And
Techniques
Probability impact matrices, risk scoring, etc.X
TOPIC 5: Quantitative Risk Analysis Tools and Techniques
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Qualitative Methods Probability theory, etc. X X
Statistical Methods Ability to calculate volatility, the Greeks, correlation; regression,
trends, understanding actuarial methods etc.X
Quantitative Risk Analysis Tools And
Techniques
Monte Carlo simulation, decision trees, factor analysis, sensitivity
analysis, etc.X
TOPIC 6: Risk Consequence, Likelihood and Severity
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Qualitative Approach Identifying the hazards and associated risks, option analysis,
checklists, audits, use of sources (hazard studies), fault trees, cause
& consequence diagrams, etc.
X X
Quantitative Approach Choice of adequate historical data, use of statistical methods,
forecasting, scenario analysis, etc.X X
TOPIC 7: Risk Modelling
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Risk Modelling In General Ability to identify risk exposure and risk factors, implement and
validate risk models, identify model limitations, interpret statistical
analyses, conduct stress tests and scenario analyses
X
7/24/2019 Certification Programme Knowledge Only v1
25/40
25
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Asset Pricing (CAPM) Understanding the relationship between risk, return and value of
assetsX
Economic Capital Understanding the relationship between various possible risks
impact and capital needed along with risk pricingX
Key Risks Indicators X
TOPIC 8: Risk Register, Risk Matrix, Risk Profile, Risk Map
CHAPTER LEARNING OUTCOME Passport
Level (X)
Adva
Leve
Risk Register Competence to organize a companys risk register given its
industry, size/complexity, etc.X X
Risk Matrix Competence to define risk matrix and adequate risk response given
a companys industry, size/complexity, etc. X
Risk Profile Understanding the approach to defining a companys risk profile;
competence to differ between perceived and actual risk profile and
the use of the concept to achieve target risk profile
X
Risk MapX X
BIBLIOGRAFY, READING, LEARNING MATERIALS
ANDERSON, DAVID RAY (2012), Quantitative Methods for Business, West Publishing Company, 12t
edition (topic
4, 5, 6, 7)
BODIE, ZVI (2010), Investments, Times Mirror Higher Education Group, 9th
edition (topic 4, 5, 6, 7)
BRIGHAM, EUGENE F. (2011), Fundamentals of Financial Management, The Dryden Press, 7th
edition (topic 1, 2, 3,
5)
BRIGHAM, EUGENE F. (2012), Intermediate Financial Management, The Dryden Press, 11th
edition (topic 1, 2,3, 5)
CROUHY, MICHEL (2001), Risk Management, McGraw-Hill, 2nd
edition (topic 1, 7, 8)
GREGORY, JON (2010), Counterparty Credit Risk, John Wiley & Sons Ltd., 1
st
edition (topic 4, 5, 6, 7)
SERVIGNY, ARNAUD DE (2004), Measuring and Managing Credit Risk, McGraw-Hill, 1st
edition (topic 4, 5, 6, 7)
WHITE, GERALD I. (2002), The Analysis and Use of Financial Statements, John Wiley & Sons, Inc., 3rd
edition (topic
2)
MCKINSEY WORKING PAPERS ON RISK, NUMBER 13 (2011), Risk modelling in a new paradigm: developing new
insight and foresight on structural risk
7/24/2019 Certification Programme Knowledge Only v1
26/40
26
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
KING, JACK L., Operational Risk : Measurement & Modelling, Wiley Finance pp.261
MARSHALL, CHRISTOPHER, Measuring & Managing Operational Risks In Financial Institutions, Wiley Finance, pp.
569
Block 03: Risk Treatment I
TOPIC 1: General Aspects (Company Risk Appetite, Inherent and Current Level of Risk; Risk Tolerance,
Treatment, Transfer and Termination, Etc.)
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Company Risk Appetite Competence to define risk appetite, management risk
tolerance, the role of risk manager/Chief Risk Officer/risk
committee, economic capital, regulatory capital etc.;
X X
Economics Of Risk Treatment Knowledge and competence to provide top management
with basis for decision making on risk treatment based on
economics of risk management (scenario analysis based on
impact, probabilities and expected (opportunity) cost of
avoidance, reduction, retention or transfer)
X
TOPIC 2: Types of Risk Treatment/Response
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Risk Response Tolerate, treat, transfer or terminate X X
TOPIC 3: Risk Control Techniques: Loss Prevention, Claims Management and opportunities
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Risk Avoidance Understanding techniques of risk avoidance and evaluationof eventual opportunity cost/profit
X X
Risk Mitigation/Preventive Techniques Understanding purpose and contents of policies,
programmes to address hazards, importance and approach
to structuring the responsibilities
X X
7/24/2019 Certification Programme Knowledge Only v1
27/40
27
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Loss Reduction Techniques Knowledge of operations management and competence to
assess opportunity in lateral approach control of
infrastructure risks (health & safety at work, natural
hazards, property fire protection, IT security, HR risks),
control of reputational risks brand protection,
environment), control of marketplace risks (technology
developments, regulatory risks)
X
Separation, Diversification And Duplication
Techniques
Understanding the tools and risk situations in which they
can be successfully appliedX
TOPIC 4: General /Financial Risk-Related Controls
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Limit Setting VaR, credit limits, Altman Z Score (and other models),
concentration indices, etc.X
Control Set-Up Control framework, techniques, necessity of predefined
criteria, monitoring frequency, etc.X
Others Fraud control
Historical liabilities (exposure to asbestos, related to
pension funds,
X
TOPIC 5: Business Continuity Management: emergency and crisis management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Business Continuity (definition) Understanding emergency and crisis management concepts X
Disaster Recovery (definition) Policies, pre-disaster protection and mitigation measures,
continuity of operations planning, post-disaster response
and recovery elements of continuity planning, etc.
X
Business Impact Analyses, Recovery Strategies
And Business Continuity Plans
Competence to outline BC/DR planX
Testing, Training And Awareness Programmes Competence to outline the main contents of defined
programmes given a companys size, industry etc. X
Communication and Crisis Management
Programmes
Competence to outline the main contents of defined
programmes given a companys size, industry etc. X
TOPIC 6: Other Techniques
7/24/2019 Certification Programme Knowledge Only v1
28/40
28
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
National Associations Tools Other techniques X
BIBLIOGRAFY, READING, LEARNING MATERIALS
BRIGHAM, EUGENE F. (2011), Fundamentals of Financial Management, The Dryden Press, 7th
edition (topic 3)
BRIGHAM, EUGENE F. (2012), Intermediate Financial Management, The Dryden Press, 11th
edition (topic 3)
CROUHY, MICHEL (2001), Risk Management, McGraw-Hill, 2nd
edition (topic 1, 5, 6)
GREGORY, JON (2010), Counterparty Credit Risk, John Wiley & Sons Ltd., 1st
edition (topic 4)
SERVIGNY, ARNAUD DE (2004), Measuring and Managing Credit Risk, McGraw-Hill, 1st
edition (topic 4)
WHITE, GERALD I. (2002), The Analysis and Use of Financial Statements, John Wiley & Sons, Inc., 3rd
edition
(topic 4)
HEIZER, JAY (2013), Operations Management, Pearson, 11th
edition (topic 3)
COSO ERM, COSO Thought paper on Risk Appetite, IRM Risk Appetite &Tolerance Guidance Paper
HOPKIN PAUL (2010), Fundamentals of Risk Management p.420
Pollution prevention & Control downloadable from www.bookboon.com
Block 04: Risk Treatment II
TOPIC 1: Risk Financing Techniques
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Risk Retention Understanding risk absorption provisions, economic &
regulatory capital, captive insurance concepts & their
economics
X X
Risk Transfer Understanding the use of financial derivatives & markets,
(re)insurance covers, naturalhedgeX X
Other Risk Financing Techniques SecuritisationX
TOPIC 2: Insurance Sector
7/24/2019 Certification Programme Knowledge Only v1
29/40
29
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Insurance Market Understanding the mechanics and organisation of insurance
sector; understanding insurance sector risk transfer products
Knowing the main actors (brokers, insurers, insurance industry
network)
X X
Insurance Programs Local vs. international insurance programs & regulatory
perspective/influence, master insurance policies vs. local
policies, choice of right insurance mix - optimal (international)
coverage, claims management, etc.
X X
International Insurance Legislations and
Regulations
Particularities in insurance policies, coverage & claims
management under general legislative approaches (e.g. Anglo-
Saxon vs. Continental Law); particularities in liability insurance,
etc.. compliance in international insurance programs
X
National Legislations and Regulations Knowledge of national insurance sector, market/solutions and
particularities, etc.X
TOPIC 3: Insurance
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Types Of Insurance Cover Broad knowledge of types of insurance: property, liability,
marineX X
Premium Knowing how the premium is calculated, revised, taxedX X
Deductibles Rationale for deductibles for insurer and the insured
(economics & scenario analysis of deductibles based on
mathematical probability (market/company) including analysis
of historical data/time series of cases.
X X
Material Contractual Obligations Knowledge of key legal principles and obligations with which
the insured should be familiar X X
TOPIC 4: Reinsurance
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Reinsurance Definition X X
Reinsurance MarketUnderstanding the structure and operations of reinsurance
X
7/24/2019 Certification Programme Knowledge Only v1
30/40
30
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
market, parties involved, functioning of captive (re)insurance
companies
Classifications Proportional and non-proportional(per-risk, per-event & stop-
loss cover).X
New Reinsurance Techniques X
TOPIC 5: Captive (Re) Insurance Companies
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Captive Definition X X
Classification Knowledge of captive insurance principles and possibilities
(single parent, association, industry captive, rent-a-captive, cell
captives, etc.)
X
Organisations & applications Knowledge of legal/regulatory and tax aspects of captives. X
Captives as risk retention and risk transfer
tool
Understanding rationale, economics and mechanics of captive
insurance companies
X
TOPIC 6: Alternative Risk Transfer
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Standard Methods Understanding the mechanics and organisation of financial
sector; understanding financial sector risk transfer products,
options, bonds
X X
Alternative Risk Transfer (ART) Methods Catastrophe bonds, reinsurance sidecars, industry loss
warranties; financial derivatives, etc.X
TOPIC 7: International Insurance Market
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Structure And Organization Of
International Insurance Market
Parties involved importance, governance, regulation, etcX X
International Programs Products, insurance policies, claims management, etc. X
7/24/2019 Certification Programme Knowledge Only v1
31/40
31
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
BIBLIOGRAFY, READING, LEARNING MATERIALS
BAWCUTT, PAUL (1997), Captive Insurance Companies: Establishment, Operation and Management,
Witherby & Co Ltd, 4th
edition (topic 4, 5)
BRIGHAM, EUGENE F. (2011), Fundamentals of Financial Management, The Dryden Press, 7th edition (topic
6)
BRIGHAM, EUGENE F. (2012), Intermediate Financial Management, The Dryden Press, 11th edition (topic 6)
CARTER, ROBERT.L (1991), Principles Of Reinsurance, Practice Of Reinsurance, The Reinsurance Market, The
Chartered Insurance Institute Tuition Service
Block 05: Risk Communication, Monitoring & Review
TOPIC 1: Risk Culture and the Human Factor
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Risk Communication & Review Definitions X X
Risk Culture Definition Know and understand the importance of risk culture for an
effective risk management and the soft factors are even
more important than the hard ones.
Understand that walk the talk is critical for a legitimate and
trustful risk culture.
That risk culture is the effect of long-term work; slowly built
up but quickly destroyed.
X X
Risk Culture Criteria Able to define criteria of risk culture.
To know that soft factors like risk culture can be audited
and verified.
X
X
Give examples of synonyms to risk culture = control
environment and corporate culture
X
TOPIC 2: Corporate Social Responsibility
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
7/24/2019 Certification Programme Knowledge Only v1
32/40
32
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
CSR (corporate social responsibility)
Definition
Corporate self-regulation within the business model,
embracing responsibility for corporate actions to all
stakeholders
X
COSO Demystifying sustainability risks. Know and understand the connection and context of
internal and external risks, the growing weight stakeholders
put on sustainability risks.
X
Standards 3 lines of defence, CSR vs corporate governance X
TOPIC 3: Communication, Consultation, Corporate Governance & Role of the Board
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Definitions X X
Communication Communication and consultation with external and internalstakeholders should take place during all stages of the risk
management process.
It is important to develop (educate) Board members. To give to
this the key significance - continuous learning for RM
stakeholders and key users, sound increase in RM
professionalism within the Board. Board is the key client and
they are strongly expected to be an Educated Client - ready and
able for dialogue about RM system development, not just
"passive" report consumers.
Communication for business lines and company employees:
tools, eLearning
Board shall be able and ready to have dialogue with the risk
managers to define, develop and practically pose tasks,
requirements and challenge for RM function; select format and
size of the system; select tools and instruments relevant for
particular company, etc.
X
Consultation Learn which responsibilities Board directors have and which
questions directors should ask re risk oversight, objectives of
ERM, effectiveness of Managements RM process (with
adequate resources) capacity and appetite for risk, portfolio
and consolidation of risks, reporting (adequacy and timeliness)
X
Plans For Communications Therefore, plans for communication and consultation should be
developed at an early stage. X
Stakeholders Definition Who are the stakeholders?X X
7/24/2019 Certification Programme Knowledge Only v1
33/40
33
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Relations With Stakeholders Communication and consultation with stakeholders is important
as they make judgements about risk based on their perceptions
of risk. Communication and consultation should facilitate
truthful, relevant, accurate and understandable exchanges
of information, taking into account confidential and personal
integrity aspects.
Cognitive biases various studies very definitively suggest thatcognitive biases play a significant role in human ability to
correctly identify, assess and mitigate risks. Within risk
managers activities needs to be big deal of adequate coverage
of significant cognitive biases and steps to overcoming them.
X
Communications With Stakeholders Know how to differentiate risk communication for different
stakeholders, types of risks, Understand the differences of risk
perception and the importance of timing of risk
communication.
X
Conditions Risk Managers role is to facilitate, advice, co-ordinate the
RM-process.
Lines of responsibilities/defence. Separation of duties.
Dualities. All necessary for effective Governance and
Controls.
X
X
To understand that the Board has the ultimate responsibility
of Risk Oversight but that all risk owners are responsible for
their risk management.
X
TOPIC 4: Risk Management Information Systems
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Risk Management Information Systems Know the important Risk Management information Systems
on the market and their main features. If needed build your
own RMIS
Forrester and Gartner surveys.
X
TOPIC 5: Risk Monitoring
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Risk Monitoring The risk monitoring can be applied in sequence:
- Basic qualitative risk analysis techniques
(likelihood x consequences) is applicable by all
organizations
- Intermediate tools like bow-tie analysis and other
X
7/24/2019 Certification Programme Knowledge Only v1
34/40
34
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
semi-quantitative techniques should be applied to
high risks assessed.
- Advanced steps like risk modelling and quantitative
techniques should be applied to only significant
risks.
KPI/ limit indicators
Internal Control Self-Assessment (ICSA) Self-control and Self-assessment shall be recognized as
ones but exhaustive risk identification techniques.X
TOPIC 6: Risk Review
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Efficiency (general) Top priority starting points - Strategic planning, business
planning, budgeting. Risk assessments must beincorporated into strategy setting and business planning.
Budgets should be agreed and signed off only after a risk
assessment has been undertaken and results taken into
account.
X
Efficiency For Board Members Risk assessment should be integral to any significant
management or investment decision. There should not be
stand-alone risk assessment, but integrated into any
material decisions, where decision should be considered
only after proper risk analysis has been undertaken. The
level and complexity of risk analysis should be aligned with
the risk appetite and the value of the decision.
X
Risk Indicators Management reporting should include key strategic goals
and KPIs@Risk. Risk reporting should also be aligned with
performance management and employee remuneration.
Those indicators should be inbuilt into existing business
processes and should not exist on their own.
X
TOPIC 7: Risk Assurance
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Internal Audit IT & Project Assurance Process assurance X
TOPIC 8: Risk Reporting
CHAPTER LEARNING OUTCOME Passport Advanced
7/24/2019 Certification Programme Knowledge Only v1
35/40
35
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
Level (X) Level (X)
Internal Reporting Definition Internal risk reporting is the crucial matter in developing
risk culture across an organization: communication risks in
understandable, comprehensive, analytical yet practical
format would in the best way serve to risk culture
development.
Effective communication shall take in consideration general
readiness of the users (audience):
- avoid too much sophisticated format that would
be not understood;
- avoid too much general description of risks that
would not tell much practical information.
X X
Internal Reporting Tools Risk managers shall always understand that the higher is
the level of corporate risk information users the more
aggregated and analytical risk report shall be.
Risk reporting for internal users is expected to satisfy to
certain requirements:
- to provide clear basis for decision-making;
- to take into account risk perceptions by
information users;
to take into account objectives and interests of users.
X
External Reporting Not entire risks shall be communicated externally but
comprehensive information on risk management system inplace within the organization.
Agency theory concerned with so-called agency conflicts
(conflicts of interest) between agents and principals in
agency relationships: (a) between shareholders and
managers and (b) between debt-holders and shareholders.
X
Communication, Coordination & Writing A
Report
Risk reporting shall satisfy to certain criteria:
- consequent and comparable information and
format;
- regular;
- influence, results and outcomes from activities
done to influence either risk probability or risk
impact shall be always indicated;
- risk information shall be addressed at the right
level of competence - decision-making (corporate
X
7/24/2019 Certification Programme Knowledge Only v1
36/40
36
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
governance) power relevant to risk significance;
- good balance between quantitative and qualitative
risk information shall be targeted;
- risk report format shall be comprehensive for
users, other reporting lines and streams within theorganization shall be certainly taken into account
and coordinated with.
BIBLIOGRAFY, READING, LEARNING MATERIALS
BRECK, THOMAS, Types Of Risk And Types Of Communication
Technology and Market Research: surveys from FORRESTER RESEARCH, GARTNER
WHITE, GERALD I. (2002), The Analysis and Use of Financial Statements, John Wiley & Sons, Inc., 3rd
edition (topic 9)
International Accounting Standards (topic 9)
ISO 3100 points 5.2, 5.3, 5.6 and 5.7.
COSO Integrated Framework May 2013, Thought Paper Feb 2014, Risk Culture
IRM/Protiviti 2012, Understanding and Communicating Risk Appetite COSO 2012.
GRI Sustainability Reporting Guidelines 2013,
Forrester Wave Q4 2011, Gartner Magic Quadrant.
ISO 2600, UN Global Compact, COM 2011 681, OECD Guidelines, ec.europe.eu, Stakeholder model
Block 06: Specific Risk Management Topics
TOPIC 1: Operational Risk Management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Operational Risk Management - Definition
Operational Risk Management In Industry Analysing risks loss protection & prevention loss
mitigation solutions in different kinds of risks (property- X
7/24/2019 Certification Programme Knowledge Only v1
37/40
37
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
liability, transport, credit )
Definition and classification of operational risks offered by
GARP
Relationships of three operational risks components:
- technology development;
- business-processes and organizational
development (incl. internal control);
- human resources development (soft factors shall
be strongly taken into consideration, such as
moral hazard, cognitive biases, institutional
theory).
Concept Layers of Cheese and organizational (corporate)
pathogens by J. Reason
Operational Risk Management In Finance + Regulatory treatment of operational risk under Basel II &
IIIoperational risk in various financial institutionsX
TOPIC 2: Supply Chain Risk Management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Logistics Management An integrated and comprehensive treatment of logistics
and supply chain management: how firms must logically
link with their supply chain partners in order to gain a
market advantage.
Major economic trends which fundamentally influenced
the supply chain processes are: ongoing advances in IT-
management, increasing cost pressure, underlining the
role of quality management and customer satisfaction.
Also, the increasing focus on core activities causes large,
often worldwide networks for supply, production and
distribution.
X
Supply Chain Risk Management Global supply chains face a multitude of risks; review
structured and systematic approaches for assessing risks in
supply chains
Including logistics, supply chain management, operations
management, strategy, and international business - to
develop a model of global supply chain risk management.
Interconnections between plants, difficulty to calculate the
consolidated margin to declare. Evaluate insurance
response.
X
7/24/2019 Certification Programme Knowledge Only v1
38/40
38
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
TOPIC 3: Incident and Claims Management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Data Base Management Databases are part of many business applications.Therefore it is necessary for a computer scientist to gain
insight into the technology, the design and the use of
databases. Since the relational database model is the most
widely used model, it is studied quite thoroughly.
X
Claims Management Practical working knowledge of handling claims: claims
practices, fraud issues
Description of the main actors involved (brokers, experts,
lawyers, insurers)
Key legal points: deductible, limits, value
X
TOPIC 4: Portfolio, Programs and Project Risk Management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Project Management With Focus On Risk Project management can be applied to all kinds of
projects, from ICT projects to construction projects, to all
kinds of other projects. Fundamental ideas of project
management: time, resources, cash, quality, etc. Important
to learn planning techniques and many other techniques
that can be applied in project management.
Additional issue, especially for international projects, shall
be compliance risks management, where regulatory
landscape in other countries / locations can differ
substantially from the ones from where the project (and
the team) is originated.
X
TOPIC 5: Mergers & Acquisitions
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
7/24/2019 Certification Programme Knowledge Only v1
39/40
39
2015 FERMA - CONFIDENTIAL - All rights reserved - Copying and forwarding is not permitted
M&As And Corporate Strategy Mapping the path to optimise your portfolio
Cooperate in Due diligence process
Define an optimal portfolio of businesses, as well as the
right mix of internal and external growth of businesses
Design a post-M&A integration approach that fits strategic
& risk objectives, while also taking into account humanconstraints;
Differences in corporate Risk cultures
Integrates from an insurance point of view: cancellation of
the existing policies, D&O
Description of insurance products to solve a problem in an
M&A deals (legal issue, pollution, liability guarantee)
X
TOPIC 6: Business Continuity: Emergency & Crisis Management
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Business Continuity Management Learn to embed BCP in the organizational culture:
identifying a crisis situation
deciding how and when to respond
communicating both internally and externally
leading and directing the recovery process
contents of the ISO 22301 standard for BCMS
(Business Continuity Management Systems)
X
Disaster Recovery Management Key concepts of developing business continuity and
disaster recovery strategies, design and implementation of
DR plans, and preparing and conducting awareness and
training programmes
X
TOPIC 7: Emerging and Future Risks
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
Emerging & Future Risks Climate change, nanotechnologies, robotics, wearable
devicesX
TOPIC 8: Other Topics
CHAPTER LEARNING OUTCOME Passport
Level (X)
Advanced
Level (X)
7/24/2019 Certification Programme Knowledge Only v1
40/40
Regional Specific Topics X
BIBLIOGRAPHY, READING, LEARNING MATERIALS
OLSSON CARL (2002),Risk Management In Emerging Markets: How To Survive And Prosper, PearsonEducation Limited
KVINT VLADIMIR (2009) The Global Emerging Market: Strategic Management and Economics? Routledge
PROTIVITI AND NC TATE UNIVERSITTYS ERM INITIATIVE, Executive Perspectives on Top Risks for 2014
(Key issues discussed in the boardroom and the C-suite Research)
REASON, J. (1990) Human Error, Cambridge: University Press, Cambridge
IRM, Extended Enterprise: Managing risk in complex 21st century organisations
Websites:
www.erisks.comrisk related site with up to date news on trends and issues in risk management.
www.iif.compublishes country and regional reports on various emerging market countries.
www.economist.comcontains articles and archive material from The Economist including country
surveys.Foundations of Banking Risk (http://www.garp.org)
Concept Layers of Cheese and organizational (corporate) pathogens by J. Reason:
http://wikibin.org/articles/corporate-pathogens.html
Global Risks (Annual) a Global Risk Network Report of the World Economic Forum
Articles on supply chain risk management
Business case: Ericsson's proactive supply chain risk management approach after a serious sub-
supplier accident
Basel I, II, III
ISACA papers: (IT Assurance Framework (ITAF); COBIT 4.1; COBIT 5; Val IT; Risk IT)
PMBOK
http://www.erisks.com/http://www.erisks.com/http://www.iif.com/http://www.iif.com/http://www.economist.com/http://www.economist.com/http://www.garp.org/http://www.garp.org/http://www.garp.org/http://wikibin.org/articles/corporate-pathogens.htmlhttp://wikibin.org/articles/corporate-pathogens.htmlhttp://wikibin.org/articles/corporate-pathogens.htmlhttp://www.garp.org/http://www.economist.com/http://www.iif.com/http://www.erisks.com/