Risk Management: A Helicopter View (FRM Part 1 – Book 1 – Chapter 1)

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After completing this reading you should be able to:
Explain the concept of risk and compare risk management with risk taking.
Describe the risk management process and identify problems and challenges that can arise in the risk management process.
Evaluate and apply tools and procedures used to measure and manage risk, including quantitative measures, qualitative assessment, and enterprise risk management.
Distinguish between expected loss and unexpected loss, and provide examples of each.
Interpret the relationship between risk and reward and explain how conflicts of interest can impact risk management.
Describe and differentiate between the key classes of risks, explain how each type of risk can arise, and assess the potential impact of each type of risk on an organization.