Meissner also prepares HPU students for the
five-hour FRM exam in his Corporate Risk Management class (Fin
3801/ Fin 6801). Several students from this class will take
the exam this November, including: Li-Hu Chiu, Ji Dai, Aaron
Loy, Radoje Maric, and Weiwei Yao.
The FRM exam consists of a quantitative section, where basic
mathematical finance is tested, including time value of money
and bond theory, and duration and convexity. Parts 2, 3, and
4 of the exam deal with the three types of risk currently known:
a) market risk (interest rate risk, currency risk, commodity
risk, stock price risk);
b) credit risk (default risk, migration risk); and
c) operational risk (disaster risk, technology risk, knowledge
risk, accounting risk, political risk, criminal risk, and legal
A fifth section of the FRM exam covers investment risk management,
protecting portfolios against downside risk with puts, swaps,
and futures contracts.
The exam is held once a year and will probably be hosted again
by HPU in November 2006.
Generally, risk management is a fast-growing business area,” said
Meissner. “Many financial and non-financial institutions
conduct active risk management with a Chief Risk Officer (CRO)
and an increasing staff of risk managers. Several HPU students
(for example Nicholas Lent at UBS in Hong Kong and Albin Alex
at Canter in New York) are already working as risk managers.”
For more information on HPU’s Risk Management class and
career opportunities in Risk Management, e-mail firstname.lastname@example.org.