Risk Management Training Courses

Essentials of Risk Management
Essentials of Risk Management

Essentials of Risk Management

This Risk Management Training Course is engineered for finance professionals and enthusiasts keen to deepen their understanding of financial risks. The curriculum is comprehensive, covering both financial and non-financial risks including credit, interest rate, exchange rate, liquidity, and equity market risks. It offers a blend of theoretical and practical knowledge, with modules on governance and risk reduction strategies, and a focus on mastering the enterprise-level risk management process.

 

Participants will delve into risk measurement and evaluation techniques, including Value at Risk (VAR), Monte Carlo Simulation, and scenario analyses. Practical case studies ensure that learners can apply theoretical concepts to real-world scenarios, aiding in the comprehension of risk control, budgeting, and capital requirements. The course also covers risk-adjusted performance ratios like Sharpe, Treynor, and Sortino, offering detailed analysis and expert guidance for a well-rounded learning experience.

Ref: EORM-185

Learning Outcomes

  • Know and distinguish financial risks from non-financial risks.
  • Know how to identify the nature of a given risk.
  • Understand the risk management processes.
  • Be familiar with different risk measurement instruments (VAR, Monte Carlo simulation, stress tests, scenario analysis, extreme value).
  • Know how to calculate a VAR (Value at Risk).
  • Be familiar with European regulation regarding capital requirements.
  • Know how to calculate the required level of capital based on given parameters.
  • Understand the importance of ratios for measuring risk-adjusted performance, be able to distinguish them, and know how to interpret them.

Who Should Attend

  • Fund Manager  
  • Portfolio Manager  
  • Wealth Manager  
  • Management Assistant  
  • Financial Analyst  
  • Bank Treasurer  
  • Corporate Treasurer  
  • Financial Engineer  

Duration

  • 2 days (14 Hours)

Price

  • €1850 + VAT for one participant. 
  • €1480 + VAT each for a group of 2 or 3 participants, only with group registration. 
  • €1180 + VAT each for groups of more than 3, only with group registration.

Tailored Training Solutions

  • We offer the option to collaboratively develop customized programs.
  • If you don't find precisely what you're looking for, we are here to assist you in constructing the perfect solution for your organization.
  • Any of our training courses can be delivered just for your team.
  • We can also co-create bespoke programmes, so if you can't find exactly what you need, we can help you build the right solution for your organisation.
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Training Agenda

I. Risk Typology  

  1. Financial Risks  
  2. Non-Financial Risks  
  3. Focus on Financial Risks:  
  • Credit Risk  
  • Interest Rate Risk  
  • Exchange Rate Risk  
  • Liquidity Risk  
  • Equity Market Risk  
  • Quiz:
    • Identifying the Nature of the Risk

II. Risk Control Process and Approach  

  1. Governance and Risk  
  2. Risk Reduction  
  3. Features of the Enterprise-Level Risk Management Process:  
  • Data Centralization  
  • Data Analysis  
  • Data Management and Evaluation  
  • Decision Making  

III. Risk Measurement and Evaluation  

     1.Value at Risk (VAR)  

  • Definition and Role  
  • Different Types of VAR  
  • Analytical Method: Pros and Cons  
  • Historical VAR: Pros and Cons 

     2. Monte Carlo Simulation   
     3. CFAR (Cash Flow at Risk)
     4. EAR (Earnings at Risk)   
     5. Scenario Analyses and Stress Tests  

  • Practical Case:
    • Calculating VAR Based on a Given Scenario

IV. Risk Control  

  1. Risk Budgeting  
  2. Managing Position Sizes  
  3. Capital Requirements
  • Regulation  
  • Calculation  
  • Practical case:
    • Calculating the Required Capital Based on a given Scenario

V. Ratios for Measuring Risk-Adjusted Performance  

  1. Sharpe Ratio  
  2. Treynor Ratio  
  3. Sortino Ratio  
  4. Romad (Return over Maximum Drawdown)  
  5. Raroc (Risk-Adjusted Return on Capital)  
  • Practical case:
    • Analysis and Commentary on a Hedge Fund’s Performance Ratios