Financial Risk Management
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.
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
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
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.
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)