Fundamentals of Risk Management

Managing risk in the treasury context

What is it about?

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

Building a Risk management framework

• Risk Concepts and definition
• Risk and the Investor
• Risk and the Firm
• Attitudes to Risk
• Risk Management Objectives
• Risk management architecture
• A framework for operational implementation

Identifying financial risk

• Interest rate risk
• Currency risk
• Liquidity/funding risk
• Commodity Risk

Risk management instruments

• Currency risk management instruments: forwards, options, cross currency swaps
• Interest rate risk management instruments: FRAs, futures, options and swaps

Who is it for?

• 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

How do you benefit?

You will gain an understanding of treasury’s role in risk management through an overview of how the main financial risks can impact an organisation and insight into key financial risk management instruments used in the context of risk management strategy.

Trainer

ACT risk management trainers are:

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