Risk Management, Derivatives and Fixed Income

Master financial risk management, derivatives pricing, and fixed income valuation concepts for FRM Level 1 and real-world finance roles. Learn VaR, Black-Scholes, option Greeks, bond pricing, duration, convexity, and credit risk through a structured learning path. This course helps you build a strong foundation in financial risk management and valuation by simplifying complex FRM Level 1 concepts into practical, easy-to-follow lessons. You’ll begin with core risk concepts including volatility, Value at Risk (VaR), statistical foundations, and risk modeling approaches such as parametric, non-parametric, and hybrid models. As you progress, you’ll explore derivatives pricing using binomial trees and the Black-Scholes framework, including American options, dividend adjustments, arbitrage concepts, discounting principles, and option Greeks used for sensitivity analysis and hedging. The course also covers fixed income valuation and interest rate risk, including bond pricing, yield measures, spot and forward rates, yield curve dynamics, duration, convexity, DV01, spreads, and hedging techniques. Advanced sections introduce credit ratings, transition matrices, operational risk frameworks, country risk, VaR applications, and model limitations. What makes this course unique is its integrated coverage of risk, derivatives, and fixed income valuation in one FRM-focused pathway. By the end, you’ll be able to apply practical risk tools, interpret valuation models, and analyze financial instruments with confidence.