ADVANCED RISK MANAGEMENT

OVERVIEW

With an industry still reeling from one of the largest financial crises of all time and with the prospect of a whole slew of new regulatory requirements and issues around the management of risk, there has never been a more important time to look at advanced risk management techniques. This course is designed to extend your practical knowledge and understanding over the breadth and depth of financial risk management as practiced in institutions today and in the near future. Picking up where many other courses leave off, it explores the connected nature of risk across market, credit, operational, liquidity, reputational and other risks.  In particular, it looks at the techniques and methodologies employed in risk estimation and their strengths and weaknesses including their relationship to regulation and capital. Moreover it also looks at how risk is really managed (or not!) currently.

The course itself is a perfect balance of theory and practice with great emphasis on practicality and hands-on issues. It carefully examines techniques such as value-at-risk, credit modeling, stress testing and scenarios. It also looks at how Basel II and III impact risk and risk management, as well as risk management techniques in fund management. Finally, it asks the question – what have we learned from the “credit crunch”?

The three days are designed to be highly interactive with examples and workshops, plus plenty of opportunity for questions and discussion with the course leader and other delegates.

KEY LEARNING OUTCOMES

At the end of the course, participants would have:

• Gained insight into the risk management framework
• Had proper understanding of risk management process
• Understood the impact of risk management in business

TARGET PARTICIPANTS           

Risk Officers, Compliance officers, Control Officers, Internal Auditors, Back office personnel, Operations

COURSE CONTENT

DAY 1: MARKET RISK MANAGEMENT

• Introduction
• What is risk management?
• Why do we need it?
• Risk management vs. risk measurement
• Risk management, regulation and capital
• What is advanced risk management?
• Market Risk – Methodology
• The origins of market risk
• Sensitivities and The Greeks

DAY 2: CREDIT RISK

• Introduction
• What is credit risk and how does it fit/overlap with the other risks?
• The key drivers of credit risk
• Market and credit risk together
• Measurement of credit risk Portfolio Credit Risk
• Using the models to set limits and monitor risk
• Managing Credit Risk
• Traditional techniques

DAY 3: MANAGING CREDIT RISK COLLECTIVELY

• The Role of Capital and the Relationship to Other Risks
• What is capital for?
• Risk and capital performance measures such as RAROC, economic and regulatory capital
• Allocating and managing capital
• Raising capital and novel capital instruments Basel II and Further Developments

COURSE DURATION:3 Days