Participants will receive a Certificate of Completion in Essentials of Risk Management in Financial Markets, validating their foundational expertise in identifying, assessing, and managing financial risks within institutional environments.
Essentials of Risk Management in Financial Markets
Fundamentals of Identifying, Measuring & Controlling Risk in Global Financial Institutions
Course Schedule
| Venue (InHouse) | Fees |
|---|---|
| At Your Organization Premises | Ask For The Quotation |
Course Introduction
In an era of heightened financial volatility, regulatory scrutiny, and complex instruments, understanding the fundamentals of risk management is vital for all finance professionals. This course offers a comprehensive introduction to risk management principles as they apply to financial markets. Covering credit, market, operational, and liquidity risks, the program equips participants with practical frameworks, tools, and techniques to identify, assess, and mitigate risk exposures.
The course combines foundational theory with real-world practices, preparing attendees to work effectively within risk teams or contribute to a risk-aware culture in their organizations.
Course Objectives
By the end of this course, participants will be able to:
- Identify the major types of financial risk in global markets
- Understand the regulatory frameworks and risk governance models
- Apply key techniques for market, credit, and operational risk measurement
- Evaluate the use of risk mitigation tools such as hedging and diversification
- Interpret risk metrics including VaR, stress testing, and scenario analysis
Key Benefits of Attending
- Gain a structured understanding of financial risks and how they affect institutions
- Build practical knowledge of measurement tools and control frameworks
- Understand the latest Basel and regulatory expectations for risk functions
- Learn how leading institutions manage risks in trading and lending
- Prepare for advanced roles in risk, audit, compliance, or investment oversight
Intended Audience
This program is designed for:
- Risk officers, analysts, and managers
- Compliance and audit professionals
- Treasury and finance professionals
- Junior traders and investment staff
- Regulators and supervisors seeking foundational insights
Individual Benefits
Key competencies that will be developed include:
- Ability to recognize and categorize types of risk
- Competence in using basic quantitative and qualitative risk tools
- Familiarity with key metrics like VaR, sensitivity analysis, and stress testing
- Improved decision-making under risk scenarios
- Understanding of internal control systems and governance principles
Organization Benefits
Upon completing the training course, participants will demonstrate:
- Improved identification and escalation of financial risks
- Stronger alignment with global risk frameworks and standards
- Enhanced risk culture and awareness within teams
- Better preparedness for audits, inspections, and regulatory reviews
- Improved internal reporting and control processes
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
- Strategy Briefings – Coverage of risk types, regulatory frameworks, and tools
- Case Studies – Real-world examples of financial failures and lessons learned
- Workshops – Hands-on exercises in risk rating, VaR, stress testing, and risk mapping
- Peer Exchange – Interactive group discussion on risk incidents and mitigation strategies
- Tools – Templates and checklists for risk assessment and control evaluation
Course Outline
DETAILED 5-DAY COURSE OUTLINE (Customizable)
Training Hours: 07:30 AM – 03:30 PM
Daily Format: 3–4 Modules | Breaks: 09:30 & 11:15 | Lunch: 01:00 – 02:00
Day 1: Introduction to Risk Management in Financial Markets
- Module 1: Foundations of Risk Management (07:30 – 09:30)
- Definitions and categories of financial risk
- Objectives and components of risk management
- Overview of risk management frameworks in banks and markets
- Module 2: Regulatory Context and Risk Governance (09:45 – 11:15)
- Role of regulators (Basel, IOSCO, EBA, etc.)
- Risk governance structures and 3-lines-of-defense model
- Risk appetite and enterprise risk management
- Module 3: Case Study: Major Market Failures (11:30 – 01:00)
- Real examples (e.g., Barings, Lehman Brothers, Archegos)
- Root cause analysis and control failures
- Key takeaways and risk learning points
Day 2: Market Risk Management
- Module 4: Components of Market Risk (07:30 – 09:30)
- Interest rate, equity, FX, and commodity risks
- Measuring exposures and sensitivities
- Market volatility and correlation
- Module 5: Value at Risk (VaR) Models (09:45 – 11:15)
- Parametric, historical, and Monte Carlo approaches
- Limitations and uses of VaR
- Linking VaR to capital and reporting
- Module 6: Stress Testing and Scenario Analysis (11:30 – 01:00)
- Designing meaningful stress tests
- Reverse stress testing and historical scenarios
- Using outcomes to manage risk appetite
Day 3: Credit Risk Fundamentals
- Module 7: Introduction to Credit Risk (07:30 – 09:30)
- Credit exposures in lending and trading
- Key metrics: PD, LGD, EAD
- Internal ratings and external credit assessments
- Module 8: Mitigation and Credit Enhancements (09:45 – 11:15)
- Collateral management and netting
- Credit insurance, guarantees, and covenants
- Counterparty risk and credit derivatives
- Module 9: Default and Exposure Measurement (11:30 – 01:00)
- Credit scoring and early warning indicators
- Expected vs. unexpected loss
- Basel capital requirements for credit risk
Day 4: Operational & Liquidity Risk
- Module 10: Operational Risk Overview (07:30 – 09:30)
- Definition and sources (process, people, systems)
- Mapping and classifying operational risk events
- Risk control self-assessment (RCSA)
- Module 11: Incident Management and Controls (09:45 – 11:15)
- Key Risk Indicators (KRIs) and thresholds
- Loss event reporting and root cause analysis
- Business continuity planning
- Module 12: Liquidity Risk Management (11:30 – 01:00)
- Liquidity coverage ratio and NSFR
- Funding sources and stress scenarios
- Asset-liability management (ALM) perspective
Day 5: Integrated Risk Management & Course Wrap-up
- Module 13: Risk Integration and Capital Management (07:30 – 09:30)
- Economic capital vs. regulatory capital
- ICAAP and risk-adjusted return on capital (RAROC)
- Integrated risk dashboards and reporting
- Module 14: Risk Culture and Conduct Risk (09:45 – 11:15)
- Elements of strong risk culture
- Ethics, conduct risk, and behavioral triggers
- Linking risk to incentives and governance
- Module 15: Final Case Workshop & Review (11:30 – 01:00)
- Group case: Simulated risk control scenario
- Discussion and presentation
- Key takeaways and learning reflection