These are the FS Diploma Module 1 and 2 Courses

This module introduces the wider Financial Services (FS) environment in which risk management operates. It asks you to consider questions such as: 

  • What are the key business issues for financial sector organisations, and how might the associated risks and opportunities be managed? 
  • What does effective risk management look like in financial services? 
  • What influence do issues of culture and appetite for risk have on the approach to managing risks? 
  • What are the regulatory drivers for risk management, particularly in banks and insurers? 
  • What are the key developments in risk management practice across the financial services sector following the global financial crisis of 2007/2008, in particular regarding board responsibility and remuneration?  

This module complements module 1. Successful completion of modules 1 and 2 leads to the award of International Certificate in Financial Services Risk Management.

This module introduces the principles and concepts relating to risk and risk management in the financial sector. It focuses on banks and insurers because they are the largest institutions in the sector and they are subject to extensive risk management focussed regulation. That isn’t to say that the approaches referenced in this course are not applicable to other types of institution. It explores what we mean by risk, the key concept of enterprise risk management and the standards and frameworks exist to guide us through the process of managing risk. Together with Module 2 it leads to the award of the International Certificate in Financial Services Risk Management as well as introducing FS practitioners to some of the broader concepts of risk management and standards that exist outside of their field but are relevant. 

When we refer to Solvency II and Basel III we refer to the requirements agreed at a global level by the BCBS but recognise that the requirements that apply in any local jurisdiction will be those set by local regulators. Such regulations are likely to be based on Basel III but may well contain different or additional requirements to suit local needs. Similarly Solvency II sets out requirements that have been agreed and apply to all insurers in Europe. Different requirements apply in other territories though there may be some similarities. You should seek to understand how far your local regulation reflects that of Basel III or Solvency II. Also note that exams will generally reference Basel III or Solvency II.