FIN — Financial Risks

1) Purpose, Scope & Design Principles

Mission. Build capacity to anticipate, measure, govern, and finance risks across enterprise risk (ERM), capital & liquidity, treasury/ALM, model risk, operational & cyber/ICT risk, conduct/compliance, climate & nature risk, disaster risk finance (DRF), digital assets/tokenization, and real-time payments.

Design principles

• Standards-anchored: Basel capital/liquidity (LCR/NSFR, IRRBB, CCR/CVA, ICAAP/ILAAP), BCBS 239 (risk data), SR 11-7 (model risk), DORA/NIS2 (ICT/operational resilience), ISSB S1/S2 (disclosure), IFRS 9 (ECL), IAIS/Solvency II (insurance), PCAF (financed emissions), TNFD (nature risk), ISO 27001/27701 (security/privacy), NIST CSF & AI RMF (security/AI).
• Evidence & portability: Every artifact is SPDX-licensed, includes W3C-PROV lineage, and is issued as Open Badges 3.0 inside W3C Verifiable Credential envelopes; public artifacts may receive DOIs.
• Accessibility & inclusion: WCAG 2.2 AA; EN/FR/ES/AR; RtL-ready; accommodations built-in.
• Safety & governance: synthetic/de-identified datasets only; strong model-risk governance; conflict-of-interest and confidentiality controls.

2) Tiers, Workload & Quality Targets

• NB (Nanobadge) 2–4 h (0.2–0.4 NCU) → quiz + one artifact
• MB (Microbadge) 6–8 h (0.6–0.8 NCU) → mini-project + quiz
• MC (Micro-Certificate) 12–20 h (1.2–2.0 NCU) → lab + scenario + proctored QZ/OD
• PC 60–90 h → 4–5 MCs + capstone
• AC 120–150 h → 2 PCs + red-team defense
• DIP 240–300 h → cross-stream capstone + board defense
• Fellow-PNG invitation only → publish in Nexus Journals (open methods/data)

Assessment quality: quiz reliability (α/KR-20) ≥ 0.75; item discrimination median ≥ 0.25; multilingual DIF checks.
ECTS advisory: 1 NCU ≈ 0.33–0.40 ECTS.
Renewal: invited on MAJOR revision via delta exam or artifact refresh.

3) Codes, Versioning & Catalog Ops

• Grammar: FIN-[NB|MB|MC]-2xx/3xx/4xx/599
• Revision: rev: YY.MM.P (major/minor/patch) with change log; delta exam offered on MAJOR
• Permalinks: /academy/courses/<code> (latest) + ?rev=… for specific
• Status: active | deprecated | superseded with successor mapping

4) Cross-Cutting Compliance & Interoperability

• Capital & liquidity: LCR/NSFR construction, monitoring, and management actions; ICAAP/ILAAP linkage to risk appetite.
• IRRBB: ΔEVE/ΔNII under prescribed shocks, behavioral deposit modeling, supervisory outlier tests.
• Credit loss & classification: IFRS 9 staging (1/2/3), ECL horizons, overlays, and governance.
• Risk data: BCBS 239—governance, CDEs, lineage, aggregation, and reporting timeliness.
• Model risk: SR 11-7 lifecycle and independence; LLM/GenAI controls (prompt/data governance, drift, hallucination risk, fairness).
• Operational & ICT resilience: DORA/NIS2 obligations—ICT risk management, incident reporting, digital operational resilience testing (threat-led), and third-party registers/concentration risk.
• Sustainability & nature: ISSB S1/S2 baseline; PCAF financed-emissions methods; TNFD LEAP process (dependencies/impacts, location, evaluation, performance).
• Security & privacy: ISO 27001/27701; NIST CSF; privacy-by-design; cross-border data transfer considerations.
• Payments & financial crime: RTP/instant payments fraud (APP), sanctions/KYC/KYT controls, transaction monitoring, and consumer duty outcomes.
• Digital assets & tokenization: token design, custody, smart-contract risk, market integrity, and DLT operational risk.

5) Nanobadges (NB) — atomic financial-risk skills

Each NB includes a 10–12 item quiz and one portfolio artifact (SPDX + PROV).

• FIN-NB-201 EL/UL Quick Calc 101
  Compute EL and approximate UL from PD/LGD/EAD with stress multipliers.
  Artifact: EL/UL calculator + sensitivity memo.
• FIN-NB-202 Climate Overlay 101
  Apply a simple climate overlay to PDs, LGDs, and collateral haircuts; document scenario choice.
  Artifact: overlay sheet + assumptions log.
• FIN-NB-203 Vendor/ICT Risk Flagging 101
  Create a risk register for critical ICT/cloud providers and map testing/incident obligations.
  Artifact: vendor risk flags + remediation plan.
• FIN-NB-204 LCR/NSFR Mini 101
  Calculate LCR and NSFR on a stylized balance sheet; interpret drivers and levers.
  Artifact: liquidity metrics workbook.
• FIN-NB-205 IRRBB Gap & EVE 101
  Build repricing gap and simple ΔEVE/ΔNII estimates under parallel/non-parallel shocks.
  Artifact: IRRBB sheet + behavioral assumptions.
• FIN-NB-206 IFRS 9 Staging 101
  Assign Stage 1/2/3 statuses and connect to 12-month vs lifetime ECL.
  Artifact: staging log + ECL back-of-envelope.
• FIN-NB-207 BCBS 239 CDEs 101
  Define CDEs, lineage, and reconciliation rules for a core metric (e.g., LCR or ECL).
  Artifact: CDE register + controls.
• FIN-NB-208 Counterparty/CVA Basics 101
  Outline EEs/PEE, netting/CSA, and a simplified CVA stress.
  Artifact: CCR/CVA mini-deck.

Optional NBs

• FIN-NB-209 Leverage Ratio & RWA 101 → RWA/Leverage bridges; artifact: RWA bridge sheet.
• FIN-NB-210 Nature Risk Screen 101 → TNFD LEAP-lite for lending; artifact: nature dependency screen.
• FIN-NB-211 LLM/GenAI Controls 101 → model cards, testing, and guardrails; artifact: AI risk checklist.
• FIN-NB-212 Tokenized Assets 101 → custody, key management, and smart-contract failure modes; artifact: token risk screen.
• FIN-NB-213 Instant Payments Fraud 101 → APP typologies and friction design; artifact: control storyboard.

6) Microbadges (MB) — applied bridges

• FIN-MB-211 Stress Design Mini
  Draft macro/climate scenarios, shock ladders, and hurdle metrics; link to risk appetite.
  Deliverable: scenario deck + hurdle table.
• FIN-MB-212 Parametric Term-Sheet Mini
  Design a parametric DRF/ILS term-sheet (index, trigger, basis-risk controls, payout schedule).
  Deliverable: term-sheet + basis-risk memo.
• FIN-MB-213 Liquidity Playbook Mini
  Build a contingency funding plan with monetization ladders, collateral optimization, and EWIs.
  Deliverable: CFP + dashboard.
• FIN-MB-214 Model Inventory & Validation Mini
  Stand up a model inventory, tiering, validation calendar, and documentation pack.
  Deliverable: inventory + validation plan.
• FIN-MB-215 BCBS 239 Implementation Mini
  Map CDEs → lineage → aggregation controls; self-assess compliance.
  Deliverable: lineage graph + control tests.
• FIN-MB-216 DORA Third-Party Register Mini
  Compile a Third-Party/ICT Register; define testing & incident workflows.
  Deliverable: register template + workflows.

Optional MBs

• FIN-MB-217 T+1 & Post-Trade Resilience Mini → cutoffs, fails, margin; deliverable: T+1 ops playbook.
• FIN-MB-218 RTP Fraud & Scam Controls Mini → detection features, confirmations, recovery windows; deliverable: fraud control pack.
• FIN-MB-219 Tokenization & Smart-Contract Audit Mini → threat model + test plan; deliverable: audit checklist.
• FIN-MB-220 LLM/GenAI in Risk Ops Mini → use-case, metrics, bias/drift monitoring; deliverable: AI control sheet.

7) Micro-Certificates (MC) — 12–20 h; proctored

Rule: Each MC requires ≥5 CORE 101 NBs, ≥2 FIN NBs, ≥1 MB, plus the lab below.
Assessment mix: Lab 50% · Scenario brief 20% · Proctored QZ/OD 30%.

FIN-MC-201 Market, Credit, Liquidity Basics

Outcomes: compute EL/UL; build LCR/NSFR; write a risk appetite memo linking metrics to limits.
Prereqs (rec.): FIN-NB-201/204/206; MB-213.
Lab: integrated risk workbook + board one-pager.
Roles: Risk Analyst (Market/Credit/Liquidity).

FIN-MC-202 Operational & Cyber Risk for FIs

Outcomes: ICT risk register; incident taxonomy; loss data approach; testing & reporting obligations; third-party concentration analysis.
Prereqs: FIN-NB-203; MB-216.
Lab: ICT risk & incident playbook + reporting templates.
Roles: OpRisk/ICT Risk Analyst.

FIN-MC-203 Climate/ESG Risk Foundations

Outcomes: disclosure map (ISSB baseline); financed-emissions calc for one asset class; nature risk screen add-on; transition plan summary.
Prereqs: FIN-NB-202/210; MB-211 or 215.
Lab: climate/nature risk report starter + data book.
Roles: Climate/Nature Risk Associate.

FIN-MC-204 Payments, Fraud & Consumer Outcomes

Outcomes: APP/ransom fraud typologies; control design; consumer duty outcomes; RTP operational resilience.
Prereqs: FIN-NB-203/213; MB-218.
Lab: fraud control storyboard + monitoring deck.
Roles: Payments Risk/Financial Crime Analyst.

FIN-MC-311 Stress Testing & Scenarios

Outcomes: macro & climate scenario set; transmission channels; capital/liquidity impacts; management actions & playbooks.
Prereqs: MB-211; FIN-NB-204/205.
Lab: stress pack + OD on assumptions.

FIN-MC-312 Parametric & Insurance-Linked Instruments

Outcomes: index design; trigger calibration; payout profile; coverage/hedge accounting notes.
Prereqs: MB-212; FIN-NB-201.
Lab: parametric term-sheet + basis-risk memo.
Roles: DRF Structuring / Treasury.

FIN-MC-313 Model Risk & AI Governance

Outcomes: model inventory/policy; validation evidence; AI risk controls and model cards; FAIR/Explainability for credit/AML use-cases.
Prereqs: MB-214; FIN-NB-207 or 211.
Lab: MRM policy kit + validation sample; OD on independence & use controls.
Roles: Model Risk Analyst/PM.

FIN-MC-316 Tokenization, Custody & Smart-Contract Risk

Outcomes: token design/custody models; private-key ops; contract testing; oracle and bridge risks; operational resilience for DLT.
Prereqs: FIN-NB-212; MB-219.
Lab: token risk assessment + contract test plan.
Roles: Digital Assets Risk/Operations.

FIN-MC-317 LLM/GenAI for Financial Risk

Outcomes: use-case scoping; dataset governance; bias/drift metrics; control gates; red-team test design.
Prereqs: FIN-NB-211; MB-220.
Lab: AI control sheet + red-team findings; OD on governance.
Roles: AI Risk Lead / Model Risk.

FIN-MC-421 ALM & Liquidity Risk

Outcomes: ΔEVE/ΔNII under prescribed shocks; behavioral deposit models; CFP monetization strategy with EWIs.
Prereqs: FIN-NB-204/205; MB-213.
Lab: ALM workbook + treasury actions deck.
Roles: ALM/Treasury Analyst.

FIN-MC-422 Credit Portfolio & Counterparty

Outcomes: portfolio migration & staging; ECL overlays; CCR/CVA sensitivities; collateral and netting analysis; wrong-way risk notes.
Prereqs: FIN-NB-206/208; MB-215.
Lab: portfolio & CCR pack; OD on governance.
Roles: Credit/Counterparty Risk Analyst.

8) Capstone & Programs

FIN-MC-599 Financial Risk Capstone (Level-5)

Tracks:

• Board Defense: risk appetite, stress, capital & liquidity, model risk policy.
• Deployment: MRM policy + DORA register + climate/nature disclosure pilot + RTP fraud controls.
  Portfolio (must include): integrated DSS (risk dashboards), stress pack, ALM playbook, MRM memo, ICT third-party register, and disclosure starter. VC issued; public artifacts may receive DOIs.

PRG-PC-FIN-01 Professional Certificate — Financial Risks

• Requirements: choose 4–5 MCs from 201/202/203/204/311/312/313/316/317/421/422 + FIN-MC-599
• Total: ≈ 8.0 NCU (80 h) + capstone
• Min revs: each required MC >=25.09

PRG-AC-Climate-Finance-01 Advanced Certificate — Climate & Financial Risk

• Requirements: PC(Finance) + PC(Environmental Risks) + red-team defense (transition/nature risk and data lineage).

PRG-AC-Secure-Tech-Finance-01 Advanced Certificate — Secure Tech & Finance

• Requirements: PC(Finance) + PC(Technology Risks) + red-team defense (ICT/DORA/third-party concentration).

PRG-AC-Digital-Assets-01 Advanced Certificate — Digital Assets & Tokenization (NEW)

• Requirements: PC(Finance) + PC(Technology Risks) + red-team defense (custody, smart-contracts, operational resilience).

PRG-DIP-Nexus-Finance-01 Diploma — Cross-Stream Financial Leadership

• Requirements: any 2 ACs (≥1 Finance) + CORE-MC-595 + board defense.

Fellow-PNG (Finance)

• Invitation-only. Publish in Nexus Journals, release reproducible data/code (DOI), and steward standards mappings (ORCID/ROR recorded).

9) Implementation Profile

• NB: 1–2 lessons; randomized Quiz + Assignment (artifact); Certificate on; Forum on.
• MB: multi-lesson; Assignment rubric + Quiz; Prereq (≥1 NB) on.
• MC: lessons + Lab Assignment + Scenario Assignment + Proctored Quiz/Oral (Zoom/approved tool); Prereqs on; Certificate on.
• Capstone: cohort schedule; panel rubric; oral defense recording.
• Webhooks: badge.issued, badge.revoked, program.conferral, artifact.published → NXS-NSF (OB3/VC).
• Telemetry: xAPI/Caliper events for start, item, submission, grade, badge.

10) Standards, Competencies & CPD Mapping

• Standards: Basel LCR/NSFR/IRRBB/CCR/CVA; BCBS 239; SR 11-7; DORA/NIS2; ISSB S1/S2; IFRS 9; IAIS/Solvency II; PCAF; TNFD; ISO 27001/27701; NIST CSF & AI RMF.
• Competency frameworks: ESCO roles (Risk Analyst, Treasury/ALM Analyst, Model Risk Specialist, Climate/Nature Risk Analyst, OpRisk/ICT Risk Analyst, Payments/Financial Crime Analyst); optional SFIA mappings for data/AI/privacy.
• CPD/CE: GARP FRM, PRMIA PRM, CFA Institute (where applicable), ISACA CPE (ICT/AI/privacy), ACAMS (financial crime); advisory ECTS totals on pages.

11) Metadata & Credential Examples

MC JSON-LD (trimmed)

{
  "@context": ["https://schema.org", "https://lrmi.dublincore.org/jsonld/context.jsonld"],
  "@type": "EducationalOccupationalProgram",
  "identifier": "FIN-MC-316",
  "version": "25.09.0",
  "name": "Tokenization, Custody & Smart-Contract Risk",
  "description": "Design token models, assess custody/keys, test smart contracts and plan operational resilience for DLT-based financial services.",
  "timeToComplete": "PT18H",
  "educationalCredentialAwarded": "Micro-Certificate",
  "programPrerequisites": ["CORE-NB-117","FIN-NB-212","FIN-MB-219"],
  "provider": {"@type":"Organization","name":"GCRI"},
  "teaches": [
    {"@type":"DefinedTerm","name":"Smart-Contract Risk"},
    {"@type":"DefinedTerm","name":"Digital Asset Custody"},
    {"@type":"DefinedTerm","name":"Operational Resilience"}
  ]
}

Badge policy essentials (OB3/VC). BadgeClass binds to FIN-… code + rev; assertion uses hashed recipient + salt; evidence links to artifacts with SPDX & PROV; public status list; optional hash-only anchoring via NXS-NSF.

12) QA & Release Gates (Finance)

1. Catalog linter: codes, revs, prereq DAG, standards/competency tags, i18n.
2. Accessibility: WCAG 2.2 AA automated + manual checks (tables, charts, color contrast).
3. Psychometrics: reliability ≥ 0.75; discrimination ≥ 0.25; multilingual DIF.
4. Provenance & privacy: SPDX + PROV; synthetic/de-identified data; vendor data governance.
5. Model risk: independent validation, use controls, inventory & tiering, LLM/GenAI red-team findings recorded.
6. Ops & ICT: DORA testing cadence, incident workflows, third-party register & concentration analysis.
7. Release notes: version bump; MAJOR → delta-exam invitation; CPD table updated.

13) Emerging-Risk Annex

• GenAI in finance: retrieval-augmented analysis, automated policy mapping; risks = hallucination, prompt injection, privacy, unfair outcomes; controls = model cards, guardrails, red-team tests, drift monitoring.
• Tokenized assets & DLT: custody/keys (MPC/HSM), smart-contract testing, oracle/bridge risk, market integrity, settlement finality, forks/rollbacks.
• T+1 settlement & post-trade ops: funding & collateral impacts, cutoffs, fails, compressed exception handling, intraday liquidity.
• Instant payments & APP fraud: confirmation/alerts, transaction limits, velocity/behavior analytics, recovery windows, consumer duty.
• Cloud & third-party concentration: exit strategies, portability, resilience testing, multi-region patterns, concentration heat maps.
• Cyber extortion & RAAS: tabletop injects for data theft + encryption; ransom decision frameworks; immutable backups & segmented recovery.
• Quantum-readiness: crypto-agility plans; inventory of cryptographic dependencies; hybrid modes and migration playbooks.
• Climate & nature litigation risk: greenwashing exposure, product governance, claim substantiation, nature-positive transition plans.
• Geopolitics & sanctions: screening coverage, dynamic risk indicators, secondary sanctions spillover.
• Catastrophe/DRF: satellite/EO-derived indices, parametric triggers, basis-risk mitigation, claims automation.