Financial Risk Management for Supervisors

Financial Risk Management for Supervisors.
Toronto, ON, Canada.

OVERVIEW

This course will focus on variety of risks faced by financial managers and the tools available for managing these risks. Particularly, we shall focus on credit risk, interest rate and liquidity risks, market risk, foreign exchange risk, and country risk. We shall learn about the tools and techniques available for managing these risks such as future contracts, option contracts, swaps, value-at-risk (VaR) and other standard risk-hedging techniques, and methods of measuring volatility. Students attending this course are expected to have studied basic courses of investment and portfolio management and have good understanding of asset pricing models.

WHO MUST ATTEND

Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
External, Financial and Internal Auditors
Government Regulators
Financial and Investment Analysts
Supervisors of all departments

4. Market Risk

Value at Risk (VaR) measurement
Historical and Monte Carlo Simulation approaches
Back-testing
Stress-testing
Capital charge for market risk under Basel rules

5. Credit Risk

Credit analysis models (expert system, credit scoring and rating models, artificial neural networks
Capital charge for credit risk under Basel rules
Calculating default probabilities with actuarial and market prices based methods
Measuring loss given defaults with actuarial methods
Credit Derivatives

6. Operational Risk

LEARNING OUTCOMES

At the end of this training course, you will learn to:

Financial Risk concepts & policies
How to anticipate, measure and manage financial risk
How to create processes to mitigate financial risk for your organization
Adapt loss prevention and risk mitigation procedures and measure their performances
Importance of reporting in financial risk evaluation and mitigation

COURSE OUTLINE

1. Introduction to Financial Risk Management

Motivation for risk management
Why risk management?
Creating value with risk management
Measuring risk for a single asset and for a portfolio of assets

2. Financial Engineering & Hedging

Basics of derivatives
Forwards, pricing of forward contracts under assumptions of dividends, carrying costs, etc
Futures, settlement mechanism, clearing house concept
Hedging with futures and forwards
Basic, and exotic options
Basics of option valuations, valuation options using Black-Scholes Model
Duration hedging

3. Measuring volatility and Correlations

Conditional and unconditional volatility
Weighted and unweighted conditional volatility
EWMA and CARCH (1,1) approaches to volatility
Estimating covariance