Joachim Bald
Expert in Treasury and Risk Management
Dr. Joachim Bald is Frankfurt School’s most senior international advisor and a recognized expert i...
e-campus

Origins of e-Campus: Certified Expert in Risk Management. Are you ready for the challenge?

June 19, 2017
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Hello everyone,

My name is Joachim Bald and I am the risk expert at Frankfurt School e-Campus.  I developed the Certified Expert in Risk Management (CERM) and I will be your tutor for all technical questions over the course of the six months.. 

Risk is a fact of life in financial services.  Essentially, once you are done managing the risks in small business banking and microfinance, what else is there to do?  Plan the annual company picnic?  But even that is risky:  if you spend too lavishly on the band and gift bags that will raise eyebrows among investors and create reputational concerns.  

CERM vs Other Risk courses

If you are reading this, you are probably shopping for a credential in risk and financial management that will advance your career.  We know that the CERM is not the only option:  you may also have been looking at the GARP Financial Risk Manager and the PRMIA Professional Risk Manager (PRM) designation.   The other programs are certainly also academically challenging and useful for risk management in any financial sector anywhere.  With the FSDF e-Campus CERM under your belt, you can walk proudly among other risk managers knowing that you will speak the same language of risk and master the same theoretical apparatus. 

But where you will leave the others eating your dust is in applying risk management to the particular circumstances of retail financial services in emerging and developing markets.  For example, in the CERM you will learn how to design, calculate, interpret and maintain a statistical micro-enterprise credit score.  And we will do this with a simple statistical plug-in for Excel without buying an expensive software „solution“ and flying in an army of implementation consultants.  It is not that difficult, actually.  Over 1,000 professionals have already completed the case studies and passed the CERM exams since 2013.  This has become a powerful alumni network of risk management experts who are staying in touch within their countries and globally.  We will soon be launching the CERM Alumni Club and hope to facilitate this ongoing professional exchange on current challenges in Risk Management practice.   Right now, a topic that is all the rage in our CERM alumni circles are the data and modelling requirements for the IFRS 9 impairment models.  How do you deal with the point-in-time estimates of PD, LGD & EAD required for the Expected Credit Loss provisions.   This is the first you hear about IFRS 9 ECL provisions? Better sign up for the next CERM cycle!  We start a new group every March and September.

How is the CERM different from our other e-Campus programs?  Well, I don’t want to scare anybody, but my motto is: Risk Management must hurt a little – otherwise it’s no good!  This simply means that we will get into the details and there will be some Excel formulas and databases involved.   Risk Managers love Excel.  It helps us cut through all the bla bla bla of “articulating the risk appetite”.  I find that only once I can write something into Excel formulas and make the numbers add up, can I be sure that I have really understood a concept.  This said, it’s really not about teaching Excel formulas: you can certainly also use Math Lab, SQL, SPSS or even Quattro Pro – now you know what an old guy I am.  

Are you made for CERM?

 Here now is a quick self-test to help you find out whether the CERM is right for you:

 (1)  As a child, did you always take things apart to see how they work inside?

Yes  –  5 points
No –   3 points

 (2) When you plan holiday gifts for friends and family, do you right-click and start an Excel spreadsheet, or use the resource budgeting function in MS Project ?

Yes – 5 points
No –  2 points

 (3) Do you like to set up dynamically updating scenario models during your lunch break using complex random generator statements?

Yes – 5 points
No – 2 points

 0 – 6 points:    Don’t take the CERM.
7 – 14 points:  The CERM is right for you.
15 + points:     You should apply for my job.

 Looking forward to seeing you on the e-Campus! 

Joachim

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