Financial Risk Management
COURSE DESCRIPTION

 

Course Introduction:

 

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.

 

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 theories 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 Objectives:

 

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

 

Who Should Attend?

 

  • Managers.
  • Financial Consultants
  • Financial Advisors.
  • Securities Specialists.
  • Accountants.
  • Currency Derivatives Specialists.
  • Management Accountants.
  • Venture Capitalists.
  • Corporate Executives.

 

Course Outline:

 

Risk: A Working Hypothesis

  • Defining Risk – Generally.
  • Financial Risk: A Plausible Definition.
  • Financial Risk in an Organisational Setting.
  • Financial Risk and ‘Market Dynamics.’
  • Liquidity Risk.
  • Operating Risk.
  • Fraud Risk.
  • Settlement Risk.
  • Corporate Strategy and Risk Management.
  • The Currency Derivatives Market.

 

Financial Risk and Unpredictability: Uncontrollable Environmental Issues

  • Asset Behaviour and Pricing Implications.
  • Credit and Counterparty Risk.
  • The Legal and Political Risk Environments.
  • Risk as an Economic Factor.
  • Technological Risk Factor.
  • Risk associated with Socio-Cultural Change.

 

Financial Risk Settings: A Meta-Analytical Exploration

  • Risk in Financial Institutions.
  • Banking Risk.
  • Risk and the Currency Market.
  • Risk and the Equity Market.
  • Futures Market Risk.

 

Financial Exposure as Risk

  • Economic Exposure.
  • Transaction Exposure.
  • Translation Exposure.
  • Calculating Risk in Financial Exposure.

 

Risk Management: A Conceptual and Statistical Meta-Analysis

  • Conducting A Risk Assessment.
  • Managing Risk with Forward Contracts.
  • Financial methods of measuring Risk.
  • Quantifying financial risks.
  • Some Qualitative Approaches to Financial Risk Assessment.
  • Managing the Interest Rate Derivatives Market.
  • Managing equity risk.
  • Identifying and measuring Currency Risk.
  • Managing Financial Exposure Risk.
  • Managing currency Risk.
  • Sensitivity Analysis As Risk Management.
  • Managing Risk with SWAPS.
  • Statistical Analysis as a Risk Management Instrument.
  • Interpreting Statistical Data.
  • Mean and Statistical Mean.
  • Variance and Standard Deviation.
  • Probability and Normal Distribution.
  • Degrees of Confidence.
  • Correlation and auto-correlation.
  • Calculating statistics from actual data.
  • Understanding Statistical Significance.
  • Making Sense of Chi-squared Distribution.
  • Using Software to analyze data.
  • Using PESTEL as a Tool to Risk Management.

 

Course Methodology:

 

A variety of methodologies will be used during the course that includes:

·         (30%) Based on Case Studies

·         (30%) Techniques 

·         (30%) Role Play

·         (10%) Concepts

·         Pre-test and Post-test

·         Variety of Learning Methods

·         Lectures

·         Case Studies and Self Questionaires

·         Group Work

·         Discussion

·         Presentation

 

Course Fees:

 

This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

 

Course Timings:

 

Daily Course Timings:

    08:00 - 08:20       Morning Coffee / Tea

    08:20 - 10:00       First Session

    10:00 - 10:20       Coffee / Tea / Snacks

    10:20 - 12:20       Second Session

    12:20 - 13:30       Lunch Break & Prayer Break

    13:30 - 15:00       Last Session

COURSE OBJECTIVE
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COURSE OUTLINE
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Abu Dhabi U.A.E
H.H. Sheikh Sultan Bin Zayed Al Nahyan Building Mezzanine-(0) Floor Corniche Street
TELFAXEMAIL
+9712-6322275 +9712-6342422/853 nooraldeen@ictd.ae
P.O.Box 6201
Training Support
nooraldeen@ictd.ae
EMAIL: nooraldeen@ictd.ae website: www.ictd.ae