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PRMIA (Professional Risk Managers' International Association) is a leading global organization that provides certification and training in risk management. The PRM Exam 1: Finance Foundations is the first step in the PRM certification program, which is recognized by employers and institutions worldwide.
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| Section | Weight | Objectives |
|---|---|---|
| Financial Markets | 25% | - Derivatives exchanges and OTC markets - Market participants and regulatory frameworks - Market efficiency and liquidity concepts - Primary and secondary market structures - Money, bond, equity, and foreign exchange markets |
| Finance Theory | 25% | - Portfolio theory and asset allocation - Risk and return concepts - CAPM and multifactor pricing models - Time value of money and valuation principles - Capital structure and corporate finance basics |
| Financial Instruments | 25% | - Credit derivatives and structured products - Equities and equity derivatives - Forwards, futures, and swaps - Fixed-income securities and valuation - Options and option pricing models |
| Mathematical Foundations of Risk Measurement | 25% | - Descriptive statistics and probability distributions - Linear algebra and calculus applications - Statistical inference and hypothesis testing - Introduction to volatility and correlation measures - Basic statistics and probability theory |
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