Course Overview

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About the Programme

Everyone in the finance world needs a firm understanding of risk - especially in light of the credit crisis. Rather than adopting the traditional approach to risk training that tends to be rather academic, the IFF Fundamentals of Risk Management course is developed with the needs of practitioners in mind. The course covers the spectrum of issues in risk management and has been recently updated to reflect the impact of the credit crunch.

This course has been designed to cover fully and explain clearly the theory and practice of risk management at an introductory level, with an emphasis and focus on understanding the principles of risk management and the more complex tools used by the experts. The programme draws upon the particular issues and problems thrown up by the credit crisis and explains the mechanics behind these scenarios and what could have been done differently to negate some of the impact.

Course Objectives

At the end of the course, participants will be able to:

  • Analysing specific risk management frameworks and different types of risk

  • Building awareness of the specific risks such as credit, market and operational

  • Exploring the main risk measurement and management tools

  • Understanding how risk standards are developed

  • Identifying key criteria for implementing effective risk controls, procedures and regulatory processes

Who Should Attend

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CEOs, CFOs, managing directors, general managers, finance managers, management accountants and other finance professionals, business development managers, business planning managers, sales and marketing managers, business unit managers, management accountants, audit and risk managers, engineering and HR managers

Course Outline

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An Introduction to Risk Management

The risk management framework

Overview of different types of risk

Current trends and future issues in risk management

Credit Risk Management

Defining credit risk

- counterparty risk

- default risk

- settlement risk

Evaluating netting agreements

How collateral management can help reduce credit risk

Describing the credit rating process

Credit spread analysis

Measuring credit risk using

- VaR

- CreditMetrics

Use of credit derivatives in risk management

Credit enhancement techniques

 

Market Risk Management

Defining market risk

Identifying market risk sensitivity

- liquidity

- volatility

- foreign exchange

- term structure

Measuring and managing market risk using

- various approaches to VaR

- stress testing

 

Operational Risk Management

Defining operational risk

Developing methodologies to monitor and control operational risk

Assessing the various approaches to quantify operational risk

Overcoming data limitation when measuring operational risk

How to integrate operational risk into the organisation’s risk management framework

 

Analysing Other Types of Risks

Political and economic risk

Legal risk

Liquidity risk

Accounting risk

Tax risk

Model risk

Other risks

 

Risk Measurement Tools

Explaining the most commonly used risk measurement tools:

- historical simulation

- scenario analysis

- variance, covariance and correlation

- Monte Carlo simulation

- RAPM

- VaR

- duration and convexity

- risk parameters - the Greeks

- yield curve modelling

- stress testing

- other tools

Understanding the basic maths behind them

Learning when each model should be used

 

Use of Derivatives in Risk Management

When and why to use derivatives

- options

- futures

- swaps

Hedging using derivatives

 

Developing risk standards

Does your board truly understand its risks?

Risk standards for investment managers

Finding the right balance between risk and reward for your organisation

 

Identifying the Essential Criteria for Implementing Risk Management Controls and Procedures

 

Identifying and solving communication breakdown between front and back office to maximise risk control

 

The Legal Aspect

Overview of new regulations:

- EU Capital Adequacy Directive

- BIS regulations (Capital Accord 1988 - Market Risk Amendment 1996)

- Basel II

Location, Pricing & Dates

All courses are available in-house (your preferred location) but throughout the year, we run selected courses as scheduled programmes. To view scheduled courses, please hover over dates on the calendar below.