Risk Management Tools and Practices

New York Institute of Finance

How long?

  • 1 day
  • in person

New York Institute of Finance

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Who should attend

  • Risk managers and assistants
  • trading assistants
    • finance professionals
    • auditors and controllers

About the course

Introduction to risk management techniques including the use of standard hedging instruments, asset-liability management and integrated risk management.

This course is a component of the Risk Management Professional Certificate.

Prerequisite knowledge:

  • Basic MS Excel skills
  • Basic probability and statistics
  • Basic knowledge of financial securities and markets

CURRICULUM

Day 1

MODULE 1: RISK MANAGEMENT TOOLS AND PRACTICES

  • Risk management tools - Index futures, Equity swaps, Options
  • Exposure and loss limits

MODULE 2: ASSET-LIABILITY MANAGEMENT

  • ALM governance
  • Interest rate risk on the balance sheet - Funding / rate gaps, Duration gaps, Balance sheet immunization
  • Liquidity risk on the balance sheet
  • Credit risk on the balance sheet
  • Market value of equity at risk
  • Securitization: An ALM tool

MODULE 3: OPERATIONAL RISK AND INTEGRATED RISK MANAGEMENT

  • What is operational risk? - Internal fraud, External fraud, Employment practices, Obligations to clients
  • Examples of operational risk failures - Rogue Trading: Allied Irish Bank, 2002, Customer Business: Enron, 2001, Rogue Trading at Societe Generale, 2008)
  • Operational Value at Risk
  • Integrated risk management - Economic capital, risk capital and regulatory capital
  • Risk Governance: Best practices

WHAT YOU'LL LEARN

  • Define the basis and the various sources of basis risk, and explain how basis risks arise when hedging with futures
  • Define cross hedging and the minimum variance hedge ratio and hedge effectiveness
  • Define and interpret the optimal number of futures contracts needed to hedge an exposure, including a “tailing the hedge” adjustment
  • Demonstrate how to use stock index futures contracts to change a stock portfolio’s beta
  • Understand covered call and protective put strategies
  • Understand the purpose and pay-offs of various option spread strategies
  • Describe the ALM function of a typical commercial bank
  • Understand balance sheet risks associated with funding gaps and duration gaps
  • Define, compare and contrast economic capital, risk capital and regulatory capital

Risk Management Tools and Practices at New York Institute of Finance

From  $975

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Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

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Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.

We are happy to help you find a suitable online alternative.