Financial Risk Management

Category: Financial Risk Management

Course Description

Risk management has become the cornerstone and essence of all financial and investment decisions. It occurs every day in the financial world. Sound investments and disciplined trading are always required to be implemented within a well-defined risk management framework. This involves identifying the wide gamut of market, credit and operational types of risks, assessing them, and seeking different tools and methods to mitigate these risks for the benefit of the company under review as well as its shareholders.

Like any other worldwide business activity, risk management requires a process with a clear purpose, reliable inputs, well designated activities and value-added outputs. The risk management process typically includes such activities as sourcing, assessment/evaluation and quantification and monitoring of risk. For most kinds of activity, risk is unavoidable as long as the outcome is uncertain. Therefore, taking on risk and handling it is a core management discipline. All major corporate decisions involve choices of how much risk a business can/should take and how best to manage these risks.

Financial risk management is the activity of monitoring financial risks and managing their impact. It is a sub-discipline of the wider task of managing risk and also a practical application of modern finance theories, models and methods. The traditional role of finance within firms has been in terms of reporting and control. The modern approach is to see the financial function as actively formulating policy and directly involved in the subsequent decisions. Financial risk management involves handling those business decisions resulting from financial exposures.

As a subject, financial risk management draws on the disciplines of accountancy, economics, management science, decision theory, statistics and psychology as well as the key principles and methodologies to be found in finance.

Who Should Attend

  • Risk Managers
  • Portfolio Managers
  • Financial Analysts
  • Equity Analysts
  • CFOs
  • Traders
  • Treasurers/Assistant Treasurers
  • Strategists
  • Brokers
  • Accountants
  • Regulators
  • Lawyers
  • Policy Makers
  • Finance Directors

Benefit of Attending

  1. Gain a comprehensive understanding of the mechanics of risk management on macro and micro levels and recognise the value of good risk controls
  2. Identify, quantify and assess all aspects of interest rate risk as well as foreign exchange rate risk exposures
  3. Assess credit risk exposure and the methodologies risk managers use to hedge credit risk
  4. Manage the risk inherent in the cash flows of large complex books
  5. Understand the motives of using derivatives; hedging, asset/liability management, trading, reduction of funding costs
  6. Structure risk management strategies and explore the latest dimensions and complexities of strategies