FRM 7. Principles for Effective Data Aggregation and Risk Reporting: LOs

a) Explain the potential benefits of having effective risk data aggregation and reporting.

b) Explain challenges to the implementation of a strong risk data aggregation and reporting process and the potential impacts of using poor quality data.

c) Describe key governance principles related to risk data aggregation and risk reporting.

d) Describe characteristics of effective data architecture, IT infrastructure, and risk reporting practices.

FRM 8. Enterprise Risk Management and Future Trends: LOs

a) Describe Enterprise Risk Management (ERM) and compare an ERM program with a traditional silo-based risk management program.

b) Describe the motivations for a firm to adopt an ERM initiative.

c) Explain best practices for the governance and implementation of an ERM program.

d) Describe risk culture, explain the characteristics of a strong corporate risk culture, and describe challenges to the establishment of a strong risk culture at a firm.

e) Explain the role of scenario analysis in the implementation of an ERM program and describe its advantages and disadvantages.

f) Explain the use of scenario analysis in stress testing programs and capital planning.