Fundamentals of Risk Management

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Course Provider
Duration:2 days
Provider:Intuition Publishing
Venue:Ibec, 84-86 Lower Baggot St, Dublin 2
Course Fees: Full Course Fee: €1,790

Network Members Fee: €1,430

Course Overview

The challenges of the last few years have renewed the focus on risk in financial services companies

This Fundamentals of Risk Management course describes in detail the identification, measurement, and management of the main categories of risk to which banks are exposed, namely:

  • interest rate risk
  • market risk
  • liquidity risk
  • credit risk and counterparty credit risk (CCR)
  • operational risk

Course Content

  • Online Pre-work
    • Risk Management – An Introduction
    • Risk Management – Measurement & Management

    Classroom

    Day 1

    • Overview of risks
      • Identify and Categorize Risk within the client (Business Risk, Economic Risk, Credit Risk, Operational and Reputational Risk, Market Risks) (1)
      • Quantitative Measures employed (VaR, static position limits, Management Action Triggers, Stop Loss
      • Qualitative Measures employed ( Qualified Persons, Audit Function, Legal and Compliance)
      • Mini Case Study – Identify the multiple risks in an FX Forward Trade or Portfolio
    • Risk Management
      • Client Risk Control Structure
      • Treasury’s Role In Risk Management
      • Risk Management Culture And The Human Element
      • LTCB Case Study
    • Liquidity Risk
      • Analyze FX Long/Short Positions And Associated Liquidity Risk
      • Recognizing Liquidity Traps Relevant
      • Mini Case Study – FX Forward Average Rate Exposure
    • Operational Risk
      • Economic Risk Capital and Operational Risk
      • Fraud and Security
      • Client Validation And Compliance Procedures
      • Key Personnel Profiling
      • Legacy Issues In I.T
      • Case Study – I.T Architecture
    • Operational Risk
      • Protocol and Adherence
      • Audit Process At the client
      • Internal Clients/Portfolios
      • Case Study – National Australia Bank Aud FX Options

    Day 2

    • Operational Risk
      • Provisions
      • Cancellations And Corrections
      • Red Flags
      • MATs
      • Case Study -Societe Generale
    • Credit  Risk
      • Quantitative Measures Employed (Credit VaR)
      • Static Measures Employed ( Replacement Risk, Settlement Risk)
      • Effect Of The Business Cycle On Measuring Credit Risk
      • Market Risk And Credit Risk Linkage
      • Mini Exercise – Calculate Counterparty Replacement Risk)
    • Credit Risk
      • Credit Mitigation Techniques
      • Netting And Documentation
      • Collateral Management
      • Client Trade Motivation And Classification
      • Restructuring Trades, Credit Implications And The Risks
      • Client Zero Credit Swap Case Study (Collateral Issues)
    • Q&A, Summary & Close of Course

Learning Objectives

The key learning goals are:

  • To maximize the effectiveness of the team members and to further develop their knowledge of risk management issues
  • To understand potential issues facing treasury sales, operations & audit functions
  • Ensuring a strong foundation in Risk factors and Audit functions
  • Understand the issues facing Internal Audit, particularly regarding Operational Risk
  • Develop participant’s knowledge of the Credit Crisis and its effect on risk management and control

 Prerequisite Knowledge or Courses

The programme assumes knowledge of financial products, including derivatives

Learning Approach

We prefer to deliver the programme as a blended solution. The online pre-work builds the base knowledge of the attendees allowing the classroom time to focus on case studies and exercises.

Who Should Attend

The programme is targeted at Staff from these departments

  • Treasury sales
  • Operations
  • Internal audit
  • Risk management
  • Credit Risk

Trainer Profile

Peter Leahy – Senior Instructor

Peter has developed a reputation for providing the highest quality in consultancy and training for the financial services industry. Peter specialises in the fixed income and fixed income related capital markets, including derivatives, repo and swaps.

Peter was, until 1995, a Senior Vice President at a Bear Stearns in London where he was responsible for developing and selling Asset Backed and Derivatives products. He has worked in the financial markets for more than fifteen years and advises various institutions at the highest level on matters concerning the international capital markets. His extensive experience includes senior fixed income markets positions at J.P. Morgan, Kleinwort Benson and Bear Stearns.

Peter has been contracted on numerous occasions to act as a discussion facilitator for internal discussions and ‘town hall’ meetings within major Investment Banks.

Peter also has also gained considerable experience on the documentation of mortgages and fixed income products, as a teacher and an expert witness, including a recent high profile bond sales professional negligence cases involving CDOs and defaulted bonds.

Peter has trained courses in about twenty countries on topics including Swaps, Credit Derivatives, Securitisation and Structured Products. Peter has presented many public training programmes on Credit Derivatives and on Securitisation. He is also a visiting lecturer at the City University Business School (London).

Banks that have used Peter’s services include HSBC, CSFB, Citigroup, Merrill Lynch, JP Morgan Chase and the Bank of England.

Peter has a wide and very positive renown in the areas of Financial Markets training, product and investment consultancy as well as Expert Witness / Dispute Resolution.

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