Operational and Liquidity Risk Management

This course is part of Market Credit and Operational Risk Management Specialization

Instructor: EDUCBA

Access provided by Universitas Indonesia

8 modules

Gain insight into a topic and learn the fundamentals.

2 weeks to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

8 modules

Gain insight into a topic and learn the fundamentals.

2 weeks to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

What you'll learn

Analyze operational risk, liquidity risk, and capital adequacy frameworks in financial institutions.
Evaluate economic capital, counterparty risk, and advanced operational risk measurement methods.
Apply risk governance, liquidity management, and regulatory concepts to real-world banking scenarios.

Details to know

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Assessments

8 assignments

Taught in English

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Build your subject-matter expertise

This course is part of the Market Credit and Operational Risk Management Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
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There are 8 modules in this course

Master advanced operational risk, liquidity management, and capital planning concepts essential for FRM Level II success. Build practical expertise in enterprise risk governance, economic capital, repo markets, and operational risk measurement.

This course provides a structured and exam-focused approach to understanding modern financial risk management practices used in banking and financial institutions. Learners will explore cryptocurrency risks, market liquidity, algorithmic trading, operational risk governance, data quality management, economic capital frameworks, and capital adequacy processes. Through practical case discussions, risk modeling frameworks, and regulatory concepts, learners will strengthen their ability to analyze operational losses, evaluate risk-adjusted performance, interpret counterparty risk exposures, and assess advanced operational risk capital methodologies such as SMA and EVT. Designed for FRM candidates and finance professionals, this course combines conceptual clarity with real-world banking applications to support both certification preparation and professional growth in risk management careers.

Analyze cryptocurrency risks, market liquidity structures, funding liquidity dynamics, and monetary policy effects influencing modern financial markets.

What's included

14 videos1 assignment

14 videosTotal 101 minutes

Introduction to Bitcoin - Economics Technology and Governance10 minutes
Limitations of Bitcoin9 minutes
Distinctive Risks that Bitcoin Presents10 minutes
Regulating Virtual Currencies6 minutes
Bitcoin - Economics Practice QS5 minutes
Introduction to Market and Funding Liquidity7 minutes
Regulatory Factors8 minutes
Link Between Market and Funding Liquidity5 minutes
Market and Funding liquidity - An overview Practice QS3 minutes
Introduction to Market Liquidity Levels and Resilience9 minutes
Drivers and Their Effects on Market Liquidity Level7 minutes
Effects of Monetary Policy on Market Liquidity11 minutes
Liquidity Spillovers7 minutes
Market Liquidity - Practice QS4 minutes

1 assignmentTotal 30 minutes

Graxded - Cryptocurrency Risk and Market Liquidity Foundations30 minutes

Evaluate algorithmic trading systems, market electrification trends, negative interest rate policies, and emerging market financial risk environments.

What's included

12 videos1 assignment

12 videosTotal 84 minutes

Introduction to Algorithmic Trading8 minutes
Monitoring of Algorithmic Trading Activity7 minutes
Algorithmic Trading Practice Qs3 minutes
Introduction to Hanging up the Phone7 minutes
Electrification Drivers8 minutes
Traditional Liquidity Metrics Vs New ME5 minutes
Introduction to Motivations of Negative Policy Rates6 minutes
Implications - NIRP9 minutes
Lower Bound for Nominal Rates9 minutes
Implemented Negative Interest Rates Practice QS4 minutes
Introduction to Emerging Economy Trends11 minutes
Risk Factors Associated with Corporate Debt7 minutes

1 assignmentTotal 30 minutes

Graded - Trading Technology and Interest Rate Environments30 minutes

Assess emerging market transmission risks, external borrowings, operational risk governance principles, and enterprise risk integration frameworks.

What's included

13 videos1 assignment

13 videosTotal 96 minutes

Three Indirect Transmission Channels7 minutes
External Commercial Borrowings in India8 minutes
External Commercial Borrowings in India Continues6 minutes
Case Studies10 minutes
Policy Implications Related to the Risks10 minutes
Emerging Economy Trends Practice QS4 minutes
Introduction to Principles of Sound Operational Risk Management5 minutes
Fundamental Principles4 minutes
Role of the Board and Senior Management8 minutes
Features of an Effective Control Environment11 minutes
Managing Technology Risk9 minutes
Introduction Enterprise Risk Management8 minutes
Development and implementation of an ERM system8 minutes

1 assignmentTotal 30 minutes

Graded - Emerging Economy Risk Transmission and Operational Risk Foundations30 minutes

Examine risk aggregation challenges, risk appetite frameworks, data governance practices, and operational risk reporting systems.

What's included

11 videos1 assignment

11 videosTotal 103 minutes

Role of and Issues with Correlation in Risk Aggregation12 minutes
Enterprise Risk Management Practice qs4 minutes
Introduction to Risk Appetite Framework12 minutes
Effective RAF Metrics10 minutes
Data Aggregation Best Practices10 minutes
Introduction to Risk and Data Quality Management9 minutes
Key Dimensions of Acceptable Data Quality9 minutes
Operational Data Governance Process10 minutes
Introduction to Oprisk Data and Governance9 minutes
Event Risk Categories10 minutes
Process of Collecting and Reporting Internal OLD8 minutes

1 assignmentTotal 30 minutes

Graded - Enterprise Risk Governance and Data Quality Management30 minutes

Apply operational risk assessment tools, external loss analysis techniques, fraud case evaluations, and operational risk capital methodologies.

What's included

12 videos1 assignment

12 videosTotal 82 minutes

RCSA and KRI11 minutes
Scenario Analysis5 minutes
Operational Risk Profiles7 minutes
Organizational Structure for Risk Governance5 minutes
Oprisk Data and Governance Practice QS3 minutes
Introduction to External Loss Data12 minutes
Size and Frequency of Losses by Risk Category7 minutes
Societe General Fraud8 minutes
External Loss Data - Practice QS2 minutes
Introduction to Capital Modelling8 minutes
Operational Risk Capital Requirement7 minutes
Alternative Standardized Approach7 minutes

1 assignmentTotal 30 minutes

Graded - Operational Risk Assessment and External Loss Analysis30 minutes

Interpret advanced operational risk measurement approaches including SMA, EVT, model validation, and operational risk capital modeling frameworks.

What's included

15 videos1 assignment

15 videosTotal 120 minutes

Loss Distribution Approach8 minutes
Scenario Analysis5 minutes
Parametric Approaches of Extreme Values8 minutes
Peaks Over Threshold (POT) Approach8 minutes
Compare and Contrast Generalized Extreme Value7 minutes
Introduction to Standardized Measurement Approach for Ops Risk12 minutes
Internal Loss Multiplier Calculation6 minutes
SMA to Earlier Method of CORC11 minutes
Standardized Measurement Approach for Ops Risk Practice QS3 minutes
Introduction to Validating Ratings Model7 minutes
Best Practices and Control Processes6 minutes
Factor for Validation11 minutes
Challenges to Data Quality11 minutes
Introduction to Model Risk8 minutes
Mitigating Model Risk8 minutes

1 assignmentTotal 30 minutes

Graded - Advanced Operational Risk Capital and Measurement Approaches30 minutes

Evaluate economic capital frameworks, counterparty credit risk, RAROC methodologies, and risk-adjusted performance measurement techniques.

What's included

14 videos1 assignment

14 videosTotal 118 minutes

Introduction to Range Of Practice And Issues In Economic Capital Framework10 minutes
Economic capital Implementation Framework10 minutes
Evaluating Counterparty Credit Risk9 minutes
BIS recommendations for supervisors8 minutes
Economic Capital Framework Practice QS5 minutes
Introduction to Risk Capital Attribution and Risk Adjusted Performance Measurement9 minutes
Interpret the RAROC for a Project7 minutes
Loan Portfolio10 minutes
RAROC for Performance Measurement7 minutes
Hurdle Rate5 minutes
Adjusted RAROC Challenges in Modeling10 minutes
Risk Adjusted Performance Measurement Practice QS12 minutes
Case Studies10 minutes
Model Risk Practice QS8 minutes

1 assignmentTotal 30 minutes

Graded - Economic Capital and Risk-Adjusted Performance30 minutes

Analyze repo financing structures, collateral management, counterparty exposure, capital adequacy processes, and bank capital planning frameworks.

What's included

10 videos1 assignment

10 videosTotal 64 minutes

Introduction to Repurchase Agreements and Financing5 minutes
Common Motivations for Entering Into Repos7 minutes
Counterparty Risk8 minutes
Use of General and Special Collateral in Repo Transactions Special Spreads8 minutes
Repurchase Agreements and Financing Practice QS3 minutes
Introduction Capital Planning at Large Banks7 minutes
Effective Capital Adequacy Process7 minutes
Practices that Can Result in a Strong7 minutes
Effective Capital Adequacy Process End9 minutes
Capital Planning at Large Banks Practice QS4 minutes