Query - Basel

[Avishek]

Hi David,

I was looking for LO 19 in your videos which is there on Page 52 in your Operational Risk Pdf. Can you look into and advise as to where you have covered it in the videos?

Thanks very much,
Avi.

 

[Avishek]

Apologies David!

Its not LO 19 but LO 69. Missing in the video. Please advise

Thanks again
Avi

 

[David Harper CFA FRM]

Hi Avi,

We missed it due to the the scrambled reorg of the learning outcomes vis a vis the study guide (i.e., financial conglomerates at the end, after the basel??). Ooops

I will post up LO 69.x group simultaneous with the cram session on Nov. 2nd. Thank you for noticing. I thought I reviewed all of the learning outcomes, I think this is the only set we missed. Look for it this Friday. David

 

[Avishek]

Thanks very much David. Appreciate your promptness!
15 days of hardcore problem-solving and sample paper-solving sufficient to crack?

Avi

 

[Avishek]

Hi David

Great stuff - real hardwork put into the CRAM. Thanks very much. They are just amazing. Also when you get time, do put up the LO 69.x.

Thanks again, Avi.

 

[liewpw05]

Hi David,

Going through the Basel II readings, i noticed that in the 2008 FRM exams, there are no AIMS/Learning Outcomes for the Basel readings unlike the 2007 exams except that candidates are "expected to understand the objectives and general structure of the Basel II accord and general applications of the various approaches to calculating the minimum capital requirements".

How do you view this?

By the way, thanks for posting last year's screencast on Basel II for free as i find that extremely helpful in understanding the readings on Basel II.

Regards,
Peggy

 

[David Harper CFA FRM]

Hi Peggy,

Yes, i noticed that too

To be honest, I think GARP does not realize they are omitted. I twice this last week contacted them to request they clarify the lack of Basel-specific AIMs (there are at least 30 missing). I think they will have to reissue the AIM statements, I see know other way. (also, I continue to seek clarification on a few others; e.g., the Ong aims about being able "to derive" the EL/UL formulas which are not realistic. I think those should be dropped/recast).

So, yes, bottom line, there are surely many AIMs meant to be included, I'll bug them again this week and post back b/c i think it is important the AIMs are comprehensive....thanks! David

append: really glad you like the Basel recordings! The good news is they will all be relevant this year. While of course the basel implementation has progressed, and the political context continues to swirl, the testable framework is essentially unchanged from the June 2006 framework.

 

[peter333]

david...do you have any idea when GARP will give AIMS on three Basel readings or they will not. I am doing these three readings, assuming that they wonot give any further AIMS and they seem rather difficult. Your video is good but I always prefer to read than listening. So I am focussing on core readings for good but they are way too long.

 

[peter333]

ya forgot to ask so again...do you think we need to cover the whole 370 page reading of basel accord..i have done first hundred pages and sometimes I am thinking myself that would not be tested in whole.

 

[David Harper CFA FRM]

Peter,

1. Re AIMs on Basel, I don't know, I will continue to check with with them each week on this.

2. Well, there is far too much detail to test comprehensively. Plus, as a practical matter, given the various country-specific implementations and no small amount of controversy, a fair exam almost necessarily must be at the "Principles" level. Please see attached the section from my 2007 notes. With caveats, of course, but I do not expect the 2008 Basel AIMs to find a great deal of difference from the last year as, at the principles level, not much has changed.

David

 

[peter333]

Thanks, David...It will help a lot