The need for organisation to improve risk management is driven by internal and external stakeholders, board of directors, investor and in some cases even governments. With the proper implementation of effective risk policies that are designed to continuously manage an organisation’s risk-and-return profile and capital, it increases the chances of long term success of the business.

Instead of relying on a single risk methodology, organisation should take a comprehensive approach, integrating strands such as credit, market, operational, liquidity and reputational risks.

The workshop is a foundation level risk management course which provide participants with a comprehensive insight and understanding of corporate financial risk management and how financial derivatives can be used to mitigate the risks. It should be especially useful for those in corporate finance, treasury and risk management.

Objectives

Upon completion of this workshop, participants will be able to;

• Learn Enterprise Risk Management processes and the use of financial derivatives to financial risks of the organisations
• Learn how different application of financial derivatives can be integrated into organisations’ daily decision-making processes to enhance stakeholders understanding and awareness of financial derivatives usage, cost and benefits
• Develop an interest rate hedging policy
• Understand the Corporate Asset and Liability Management concept
• Understand currency derivatives and their applications
• Learn how to measure financial risk using various approaches to stimulation and valuation of market risks

Target Audience

This workshop is beneficial for anyone who have keen interest and wishes to gain an insight into risk management.

Duration

Two days

Curriculum

Overview of Global Financial Markets

• How Global Financial Markets Structures have Evolved Since Lehman Crisis
• Government / Central Bank’s Policy Role and how are they Reshaping the Financial Markets
• Overview of Foreign Exchange Market, Interest Rate Market and Commodity Market: Before and After the Lehman Crisis, the Development of Global Currencies versus Asian Emerging Markets Currencies

Overview of Corporate Risk Management (Enterprise Risk Management – ERM)

• Basic ERM Infrastructure: Concept and Evolution of ERM
• Risk Management at Corporate, Strategic Business and Project Levels: Sources of Risks / Type of Risks, Creating Value from Risk Taking / Risk Hedging and Risk Management Process
• Common Approaches to ERM by Organisations: CAS Framework, AIRMIC Framework and COSO Framework of Identification of Risk and Enterprise Management Objectives, Assessing Risk, Managing Risks: Principal Strategies and Methods and Finally Monitoring Risks.
• Risk Management and Corporate Governance: Concept and Theoretical Perspective of Corporate Governance (Agency Theory, Transaction Cost Theory Etc.) and Concept / Components of Risk Governance (Roles and Responsibilities, Organisational Structure and Policies / Procedures).

Managing Interest Rate Risk

• Developing an Interest Rate Hedging Policy: Processes and Organisation
• Introduction to Interest Rate Derivatives and their Applications: Forward Rate Agreement, Interest Rate Swap, Cross Currency Swap, Inflation-Linked Swap

Managing Interest Rate Risk (Continue)

• Corporate Asset and Liability Management Concept
• Asset Management: Yield Enhancement Products, Risk / Rewards and Applications
• Liability Management: How to Improve Fixed-Floating Mix and Duration for Debt
• Case Studies on Different Strategies

Managing Currency Risk

• Developing a Currency Hedging Policy: Processes and Organisation
• Introduction to Currency Derivatives and their Applications: Plain Vanilla (Spot and Forwards), Currency Options (Plain Vanilla and Exotics)
• Case Studies on Different Strategies

Measuring Financial Risk

• Various Approaches to Simulation (e.g. Historical versus Monte Carlo) and Valuation (Sensitivities versus Full Valuation) of Market Risks
• VAR (Value At Risk): Definition and Implementation

Methodologies

This course is learner-centred and active participation by attendees are highly encouraged.  Case studies are used to ensure understanding and reinforce concepts.