Financial Risk Management
Overview
This Financial Risk Management training course provides participants with a holistic understanding of financial risks and the advanced tools required to manage them effectively. Combining theoretical frameworks with real-world applications, the program emphasizes regulatory compliance, risk measurement methodologies, and strategic mitigation practices. Delivered over five intensive days, it equips professionals with the expertise to strengthen organizational resilience and long-term sustainability.
Objectives
By the end of this training course, participants will be able to: Develop a solid understanding of market, credit, operational, and liquidity risks, and their implications for financial stability. Apply key risk measurement techniques, including Value at Risk (VaR), stress testing, scenario analysis, and credit risk models (PD, LGD, EAD). Utilize financial instruments such as derivatives for hedging, portfolio diversification, and risk transfer. Navigate major regulatory frameworks (Basel III, Dodd-Frank Act) and ensure compliance. Integrate risk management within corporate governance and foster a culture of risk awareness.
Audience
This program is ideal for professionals in finance and risk-related roles, including: Risk Managers & Chief Risk Officers (CROs) Finance Managers & Directors Investment Analysts & Portfolio Managers Compliance Officers Internal Auditors Treasury & Credit Analysts Operations Managers Financial Consultants & Advisors
Methodology
The course is delivered as a highly participative workshop, featuring: Expert-led presentations. Practical case studies and real-world examples. Interactive exercises using financial modelling in Excel. Hands-on analysis of participants’ organizational risk exposures.
Outline
Day 1: Foundations of Financial Risk Management Types of risks: market, credit, operational, liquidity Risk management frameworks: process, appetite, tolerance, capacity Global regulatory landscape: Basel III, Dodd-Frank Act Regulatory bodies and their impact on practices Day 2: Market Risk Management Market risk drivers: interest rate, currency, commodity, equity Value at Risk (VaR): methods and applications Stress testing & scenario analysis Hedging with derivatives: futures, options, swaps Diversification as a risk strategy Day 3: Credit Risk Management Sources and measurement of credit risk Credit scoring, rating models, and key metrics (PD, LGD, EAD) Credit derivatives (CDS) and collateral management Credit risk transfer and portfolio diversification Day 4: Operational & Liquidity Risk Management Identifying and assessing operational risks Risk management tools: RCSA, KRIs, incident tracking Liquidity risk: definition, measurement, and ratios Stress testing and contingency funding strategies Central banks’ role in liquidity management Day 5: Integrated Risk Management & Emerging Trends Enterprise Risk Management (ERM) frameworks Integrating diverse risks into one strategy Governance: board and senior management roles Building risk policies and a strong risk culture Advanced topics: emerging markets, cyber risks, ESG risks