[Free course, sign-up is binding] Financial risk management

LEARNING OBJECTIVES

To provide the participants with a solid understanding of the financial risk management role within the treasury function and how to build a coherent risk management framework.  Discuss the different objectives of financial risk management in relation to the corporate strategy and financial objectives. Focus on the practical application examining foreign exchange risk management and hedging techniques.

OUTLINE

Introduction and learning objectives

Financial Risk Management – difference between exposure, risk and impact

§  Introduction and overview of the financial risk management framework

§  Classification, identification and quantification of financial risks

§  Objectives for risk management approach in relation to shareholder value

§  Concept of risk bearing capacity and risk appetite

 Break (15 mins)

Measuring financial risks – what gets measured, gets managed

§  Risk measurement & quantification techniques

§  Scenario analysis

§  at-Risk methodology

 Deep dive into FX Risk Management

§  Definition of foreign exchange risk

§  FX transaction risk throughout the cash conversion cycle

§  FX translation risk, impact on P&L and B/S

§  Hedging strategies based on risk appetite, sector, and business profile

 Break (15 mins)

 FX Derivatives

§  FX swaps & cross currency swaps

§  Options (plain vanilla options, caps & floors)

§  (Non-deliverable) forwards

Wrap-up and Q&A