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Market Risk Fundamentals Overview

Market risk refers to the potential for a financial institution to suffer losses due to changes in financial markets. These changes can stem from fluctuations in interest rates, exchange rates, commodity prices, and equity prices.
This course aims to equip learners with the skills and knowledge necessary to clearly articulate market risk, as well as to evaluate what part of a bank’s balance sheet is most likely to be impacted by market risk. They will also learn to quantify market risk using annualized standard deviation of returns. A specific focus of the course is to introduce the concept of Value at Risk (VaR) with a specific focus on parametric VaR.

This means learners will calculate VaR in Excel using the parametric methodology, for both single positions and for simple portfolios. Critically, real life data in the form of Refintiv charts, historical market prices, and actual bank balance sheets will be used throughout this course to ensure the content covered is both relevant and applicable to real-world scenarios.

Market Risk Fundamentals Learning Objectives 

By the end of this course learners will be able to:
  • You’ll be able to clearly describe market risk and list its main drivers
  • Assess a bank’s balance sheet to broadly determine its exposure to market risk
  • Calculate the annualized standard deviation of returns and interpret this in the context of market risk
  • Calculate Value at Risk using the parametric approach for single security positions as well as for simple two-asset portfolios.


Who should take this course?

This course is ideal for any banking professional currently working in or seeking a career in risk management and market risk management specifically. It is also suitable for banking professionals working in compliance, internal audit, finance, and investor relations that want to enhance their knowledge of market risk.

Market Risk Fundamentals

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Level 2

Approx 2.5h to complete

100% online and self-paced

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Learner Reviews

Please introduce a certification for Market risk proffessionals
Looking forward to see courses in interest rate risk, equity risk, FX Risk to excel as a market risk proffessional

Kartik Shetkar

Excellent Foundational Course
This course gives a very comprehensive overview of Market risk and the different components. It will also help you to fully appreciate Value at Risk (VAR), how to calculate it using the parametric method and why it is so important for Portfolio Managers and Risk Professionals. ~Devrhoid Davis, FMVA, CMSA. May.23.2024


Frequently asked questions

What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
Are CFI courses officially accredited?
Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
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All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.
How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
Can I email the instructor if I have questions?
While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
Will these courses help me advance my career?
Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
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