Financial Risk Management Training Course: Protecting Value In A Volatile World

Introduction:

Financial markets are inherently exposed to various risks, from market fluctuations and credit defaults to operational failures and regulatory changes. This Financial Risk Management training course equips you with the essential knowledge and skills to identify, measure, and manage these risks effectively. You'll learn how to implement risk management frameworks, utilize quantitative tools and techniques, and make informed decisions to protect value and achieve organizational objectives. From basic risk identification to advanced modeling and stress testing, this course empowers you to navigate the complexities of financial risk and build resilience in a dynamic environment.

Target Audience:

This course is designed for professionals and individuals seeking to understand and manage financial risk. The target audience includes:

• Financial analysts and managers
• Risk managers and compliance officers
• Investment professionals and traders
• Bankers and insurance professionals
• Corporate finance professionals
• Anyone seeking to enhance their understanding of financial risk

Course Objectives:

Upon completion of this Financial Risk Management training course, participants will be able to:

• Identify and classify different types of financial risk, including market risk, credit risk, operational risk, and liquidity risk.
• Measure and quantify financial risks using appropriate methodologies, such as Value-at-Risk (VaR) and Expected Shortfall (ES).
• Develop and implement risk management frameworks and policies.
• Utilize quantitative tools and techniques for risk assessment and modeling.
• Understand the role of derivatives in hedging and managing financial risk.
• Assess and manage credit risk, including credit scoring and default probability estimation.
• Evaluate operational risk and implement measures to mitigate it.
• Understand the regulatory landscape of financial risk management.
• Apply risk management principles to various financial decisions.
• Contribute to a strong risk culture within their organization.

Duration

5 Days

Course Content

Module 1: Introduction to Financial Risk Management

• What is financial risk? Types of financial risk: Market risk, credit risk, operational risk, liquidity risk, etc.
• The importance of financial risk management: Protecting value and achieving objectives.
• Risk management frameworks: Setting objectives, identifying risks, assessing risks, responding to risks, and monitoring.
• Course overview: Structure, learning objectives, and assessment methods.

Module 2: Market Risk I: Basic Concepts

• Market risk: The risk of losses arising from changes in market prices.
• Measuring market risk: Volatility, standard deviation, and beta.
• Value-at-Risk (VaR): A key measure of market risk.
• Historical simulation and Monte Carlo simulation for VaR calculation.

Module 3: Market Risk II: Advanced Techniques

• Expected Shortfall (ES): A more robust measure of market risk than VaR.
• Stress testing: Assessing the impact of extreme market events.
• Scenario analysis: Evaluating potential losses under different market scenarios.
• Factor models: Explaining market risk using systematic factors.

Module 4: Credit Risk I: Basic Concepts

• Credit risk: The risk of losses arising from the failure of a counterparty to meet its obligations.
• Credit scoring: Assessing the creditworthiness of borrowers.
• Probability of default: Estimating the likelihood of a borrower defaulting.
• Loss given default: Estimating the amount of loss in the event of a default.

Module 5: Credit Risk II: Advanced Techniques

• Credit risk modeling: Structural models and reduced-form models.
• Credit derivatives: Tools for transferring credit risk.
• Credit portfolio management: Diversification and concentration risk.
• Stress testing credit portfolios.

Module 6: Operational Risk

• Operational risk: The risk of losses arising from internal processes, people, and systems failures.
• Identifying operational risks: Risk assessments and control frameworks.
• Measuring operational risk: Loss data analysis and scenario analysis.
• Managing operational risk: Implementing controls and mitigating losses.

Module 7: Liquidity Risk

• Liquidity risk: The risk of not being able to meet short-term obligations.
• Market liquidity risk: The risk of not being able to sell an asset quickly at a fair price.
• Funding liquidity risk: The risk of not being able to obtain funding to meet obligations.
• Managing liquidity risk: Cash management, contingency funding plans, and stress testing.

Module 8: Derivatives and Hedging

• Derivatives: Futures, options, swaps, and other derivative instruments.
• Hedging: Using derivatives to reduce or eliminate financial risk.
• Hedging strategies for market risk, credit risk, and other risks.
• Valuation and risk management of derivatives.

Module 9: Integrated Risk Management

• Integrated risk management: Managing all types of financial risk in a holistic way.
• Enterprise risk management (ERM): A framework for managing risk across an organization.
• Risk appetite and risk tolerance: Defining acceptable levels of risk.
• Risk culture: Promoting a risk-aware environment within an organization.

Module 10: Regulatory Framework for Financial Risk Management

• Basel Accords: International banking regulations for capital adequacy and liquidity.
• Solvency II: Regulatory framework for insurance companies.
• Other regulations and guidelines for financial institutions.
• Compliance and reporting requirements.

Module 11: Case Studies in Financial Risk Management

• Real-world examples of financial risk management failures.
• Analyzing case studies to understand the causes of losses and identify best practices.
• Lessons learned from past crises and risk management failures.

Module 12: Advanced Topics and Current Issues in Financial Risk Management

• Climate risk: The financial risks associated with climate change.
• Cyber risk: The financial risks associated with cyberattacks.
• Fintech and risk management: The impact of new technologies on financial risk.
• The future of financial risk management.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.