Financial Risk Management
Course Overview
this course aims to enable participants to navigate the financial risks that companies face during their operations. By attending, participants will acquire the knowledge to develop a practical Enterprise Risk Management (ERM) framework, starting with identifying financial risks, analyzing them, and finally, planning treatment methodologies to handle them. They will also learn to analyze the risks qualitatively and quantitatively using different practical methods, tools, and techniques and stay updated with the latest industry trends.
Course Objectives
The objective of this course is to empower participants and organisations to:
Assess Risk Maturity of the organization
Plan Risk Management framework
Identify risks and opportunities
Perform qualitative risk analysis based on probability of occurrence and potential outcome
Perform quantitative risk analysis: to assess the numerical impact of risks identified
Plan risk responses including contingency plan to reduce overall exposure
Implement risk responses in accordance with the agreed plan and timeline
Monitor progress of implementation with proper reporting
Course Audience
Financial Directors
Senior Executives in the Finance sector
Chief Financial Officer
Finance Managers
Chief Risk Officers
Risk Managers
Internal Auditors
Professionals reporting to the CFO and CRO
Course Methodology
This collaborative Financial Risk Management Certification Course training program (course name) will comprise the following training methods:
Lectures
Seminars & Presentations
Group Discussions
Assignments
Case Studies & Functional Exercises
Like all our acclaimed courses, this training program also follows the ‘Do-Review-Learn-Apply’ model.
Course Outline
DAY 1
Introduction to Financial Risk Management
Definition and types of financial risk (market, credit, operational, liquidity)
Introduction to the risk management process and framework
Key concepts: risk appetite, tolerance, and capacity
Overview of regulatory environment (Basel III, Dodd-Frank Act)
Role of regulatory bodies (SEC, FSB, BIS)
Impact of regulations on risk management practices
DAY 2
Market Risk Management
Definition and components of market risk (interest rate, currency, commodity, equity)
Introduction to Value at Risk (VaR) and its importance
VaR calculation methods: historical simulation, Monte Carlo simulation, parametric
Stress testing and scenario analysis techniques
Importance of stress testing in market risk management
Hedging strategies using derivatives (futures, options, swaps)
Role of diversification in market risk mitigation
DAY 3
Credit Risk Management
Definition and sources of credit risk
Introduction to credit risk measurement (credit scoring, credit rating models)
Key credit risk metrics: Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD)
Use of credit derivatives (Credit Default Swaps) for risk mitigation
Importance of collateral management in credit risk
Credit risk transfer mechanisms and their applications
Strategies for credit portfolio diversification
DAY 4
Operational and Liquidity Risk Management
Definition and sources of operational risk
Framework for operational risk management (identification, assessment, monitoring, control)
Tools for managing operational risk: RCSA, KRIs, incident management
Definition and importance of liquidity risk
Measurement techniques for liquidity risk (liquidity gap analysis, liquidity ratios)
Strategies for managing liquidity risk (stress testing, contingency funding plans)
Role of central banks in managing liquidity risk
DAY 5
Integrated Risk Management and Advanced Topics
Overview of Enterprise Risk Management (ERM) framework
Integration of different types of risk into a cohesive strategy
Importance of a strong risk culture within organizations
Role of board and senior management in risk governance
Establishing effective risk policies and procedures
Introduction to advanced risk management topics (emerging markets, cyber risk, ESG)