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FAQ Before Exam Appendix: Stulz, Risk Management & Derivatives, Chapter 3: Creating Value with Risk Management

Thread starter #1
Hi there,

I'm not sure if that has been posted before, but I tried searching it on the forum but i have not a latest post on it. So here goes, the appendix that accompanies the question set of Reading 6 Practice Questions topics like Bankruptcy Costs, Manager Incentives etc... are they included in the 2016 curriculum? I checked the FRM LOs and this is what I found:

René Stulz, “Risk Management Failures: What Are They and When Do They Happen?” Fisher College of Business Working Paper Series, October 2008. [FRM–8]
After completing this reading you should be able to:
  • Explain how a large nancial loss may not necessarily be evidence of a risk management failure.
  • Analyze and identify instances of risk management failure.
    Explain how risk management failures can arise in the following areas: measurement of known risk exposures,
  • identi cation of risk exposures, communication of risks, and monitoring of risks.
  • Evaluate the role of risk metrics and analyze the shortcomings of existing risk metrics.
Although the appendix says the topics included are discontinued after 2013 FRM, can I assume that they are not being re-included this year?

Regards
 

Nicole Seaman

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#2
Hello @dilahab8408

The appendix that you are referring to is currently published in Reading 6, Stulz. However, we will be moving it to Reading 3, Stulz as it better corresponds with that reading. I will be publishing the updated Reading 3 practice question set shortly. Even if learning objectives are no longer in the curriculum, David carries them over as an appendix when he feels that those concepts are important. So if you see a reading with an appendix, and the learning objectives are no longer in the current curriculum, we suggest that you still study those concepts. We will not carry anything over that has been deleted from the curriculum unless we find that it holds value. I hope this helps!

Nicole
 
Thread starter #3
Hello @dilahab8408

The appendix that you are referring to is currently published in Reading 6, Stulz. However, we will be moving it to Reading 3, Stulz as it better corresponds with that reading. I will be publishing the updated Reading 3 practice question set shortly. Even if learning objectives are no longer in the curriculum, David carries them over as an appendix when he feels that those concepts are important. So if you see a reading with an appendix, and the learning objectives are no longer in the current curriculum, we suggest that you still study those concepts. We will not carry anything over that has been deleted from the curriculum unless we find that it holds value. I hope this helps!

Nicole
Thanks for the clarification, appreciate it :) Have a great day!
 
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