Fundamentals of Risk Management

Managing risk in the treasury context

Course overview

This course provides a framework for understanding treasury’s role in risk management. It introduces the fundamentals of interest rate risk and currency risk, identifies how these risks might arise and their impact on the company and explains the main instruments which can be used to manage these risks.

Participants on this course may also wish to attend the Applied Risk Management course which provides a deeper understanding of how to quantify risk exposure in a practical situation, determine risk management action and develop policy consistent with an ERM framework.

Programme

Risk management framework

• Identification
• Assessment
• Evaluation
• Planning
• Reporting

Identifying financial risk

• Interest rate risk
• Currency risk

Risk management instruments

• This section explains how each instrument works, their advantages and disadvantages and the most
• commonly used applications. When and where these instruments might be used is covered in the Applied Risk Management course.

What you will gain

• Understanding of treasury’s role in risk management
• An overview of how the main financial risks can impact an organization
• A clearer understanding of key financial risk management instruments used

Who will benefit?

• Finance professionals newly exposed to treasury
• Treasury professionals with experience in areas such as corporate finance or operations who need a refresher in the wider area of risk management
• Risk professionals, consultants and bankers who wish to gain an insight into how corporate treasury approaches risk management

Trainer

ACT risk management trainers are:

• Ian Jakeways FCT. Mike Northeast FCT, MA, MBA. James Lockyer FCT.