Course Description
Exposure to changes in interest rate, currency, equity and commodity markets is a fact of life but effectively measuring and managing those risks can mean the difference between profitability and loss. Selecting the product and risk hedging strategy that makes sense for a particular company and situation requires care and a solid understanding of the financial instrument tools and applications available in the market.
This 5 day day, expert-facilitated program is uniquely designed to help treasury professionals build competency-based skills for identifying, measuring and managing financial risk exposure.
The format combines presentations, case studies and application-focused checklists to cover risk analysis from assessment to evaluation, and will bridge the gap between theory and practice with:
- an initial overview of fundamental concepts and tools used to manage exposure to changes in interest rate, currency, equity and commodity markets
- discussions on ways to measure the risk-return tradeoff of popular financial instruments and related applications with respect to economic, operational and structural attributes
- a focus on practical implementation issues such as data selection, valuation and hedge effectiveness testing
Course Objective:
Participants will learn to:
- identify effective financial instruments used for managing risk from interest rate, currency, equity and commodity changes
- recognize effective risk management processes and procedures for using financial instruments
- measure the risk-return tradeoff of popular financial instruments and related
- applications with respect to economic, operational and structural attributes
- deal with practical implementation issues such as data selection, valuation
-hedge effectiveness testing
Course Certificate:
Masters Consultant certificate will be issued to all attendees completing minimum of 75% of the total tuition hours of the course.
Course Outline
Risk: A Working Hypothesis
2. Defining Risk – Generally.
3. Financial Risk: A Plausible Definition.
4. Financial Risk in an Organisational Setting.
5. Financial Risk and ‘Market Dynamics.’
6. Liquidity Risk.
7. Operating Risk.
8. Fraud Risk.
9. Settlement Risk.
10.Corporate Strategy and Risk Management.
11.The Currency Derivatives Market.
12.Financial Risk and Unpredictability: Uncontrollable Environmental Issues
13.Asset Behaviour and Pricing Implications.
14.Credit and Counterparty Risk.
15.The Legal and Political Risk Environments.
16.Risk as an Economic Factor.
17.Technological Risk Factor.
18.Risk associated with Socio-Cultural Change.
19.Financial Risk Settings: A Meta-Analytical Exploration
20.Risk in Financial Institutions.
21.Banking Risk.
22.Risk and the Currency Market.
23.Risk and the Equity Market.
24.Futures Market Risk.
25.Financial Exposure As Risk
26.Economic Exposure.
27.Transaction Exposure.
28.Translation Exposure.
29.Calculating Risk in Financial Exposure.
30.Risk Management: A Conceptual and Statistical Meta-Analysis
31.Conducting A Risk Assessment.
32.Managing Risk with Forward Contracts.
33.Financial methods of measuring Risk.
34.Quantifying financial risks.
35.Some Qualitative Approaches To Financial Risk Assessment.
36.Managing The Interest Rate Derivatives Market.
37.Managing equity risk.
38.Identifying and measuring Currency Risk.
39.Managing Financial Exposure Risk.
40.Managing currency Risk.
41.Sensitivity Analysis As Risk Management.
42.Managing Risk with SWAPS.
43.Statistical Analysis as a Risk Management Instrument.
44.Interpreting Statistical Data.
45.Mean and Statistical Mean.
46.Variance and Standard Deviation.
47.Probability and Normal Distribution.
48.Degrees of Confidence.
49.Correlation and auto-correlation.
50.Calculating statistics from actual data.
51.Understanding Statistical Significance.
52.Making Sense of Chi-squared Distribution.
53.Using Software to analyse data.
54.Using PESTEL as a Tool to Risk Management.