Financial Risk Management
Category : Corporate Finance
Duration: 5 days
Financial risk management is essential for maintaining a company’s stability in today’s uncertain economic environment. This training program introduces participants to the fundamental concepts and techniques of risk management. Participants will explore different types of financial risks—such as market, credit, and liquidity risks—and learn how to assess and mitigate these risks using hedging strategies and risk models. By the end of this course, participants will be equipped to identify, measure, and manage financial risks within their organizations.
Learning Objectives
Identify the various types of financial risks
Apply hedging techniques to mitigate financial risks
Use risk management models and tools to assess risk exposure
Understand regulatory frameworks and requirements in financial risk management
Training Program
Introduction to Financial Risk Management
Overview of financial risk: market, credit, liquidity, operational risks
The importance of risk management in financial stability
Key risk management frameworks (COSO, Basel III)
Practical case: Analyze the risk exposure of a financial institution
Types of Financial Risks
Market risk: Interest rate risk, foreign exchange risk, equity price risk
Credit risk: Default risk, credit spread risk, counterparty risk
Liquidity risk: Short-term funding and liquidity crises
Practical case: Assess a company’s credit risk using a credit risk model
Hedging Techniques for Financial Risks
Introduction to hedging instruments: options, futures, swaps
Using derivatives to hedge market risks
Managing interest rate and currency risks with derivatives
Practical case: Design a hedging strategy using options and futures for a company
Risk Management Models
Value at Risk (VaR), stress testing, scenario analysis
Monte Carlo simulation and other risk measurement techniques
Credit risk models (e.g., CreditMetrics, KMV)
Quiz: Calculate the VaR for a portfolio of assets
Regulatory Requirements for Financial Risk Management
Overview of Basel III and other regulatory frameworks
Capital requirements for financial institutions
Risk disclosures and reporting requirements
Practical case: Evaluate a bank’s compliance with Basel III risk management standards
Key Points
Numerous practical examples illustrating the different studied concepts
Practical cases to draw parallels with the concepts learned
Who Should Attend This Training
Risk managers and analysts
Treasury managers and financial controllers
Corporate finance professionals
Investment professionals and portfolio managers
Prerequisities
Basic knowledge of financial instruments and risk management is recommended
Teaching Methods
Training structured around skill transfer
Acquisition of operational skills through practice and experimentation
Collaborative learning during synchronous sessions
Multi-stage learning path to allow engagement, learning, and transfer
Training promoting participant engagement for better anchoring of lessons
Satisfaction and Evaluation
Skill evaluation will be conducted throughout the training by the participant (self-evaluation) and/or the trainer according to the training methods.
Online training evaluation on your participant space:
Immediate evaluation at the end of the training to measure your satisfaction and perception of skill improvement against training objectives. With your agreement, your overall rating and comments will be published on our site via Verified Reviews.
Post-training evaluation 40 days later to validate the transfer of your acquired skills in the workplace
Attendance tracking and issuance of an individual training certificate or a certificate of completion
LONDON
128 City Road, EC1V 2NX London
PARIS
38 Rue Boulard, 75014, Paris