Managing Financial Risk

Overview

This course provides an in-depth examination of best practices as they relate to risk management for companies engaged in trading and commercial hedging. Particular emphasis is placed on major corporate risk factors that could bankrupt or severely damage companies that trade and hedge. Although the primary emphasis is placed on price risk management, measurement and mitigation, our offering also covers operational risk, liquidity risk, systemic and credit risk.

Why you should attend

This course is designed to help senior management, traders, risk managers and back office personnel gain a thorough understanding of best practices for trading and hedging organizations. By understanding what financial risks are as well as how to measure and mitigate them, your organization can identify and avoid common pitfalls in this field. Let Mr. Richard Weissman, GARP ERP, a world-renowned author and specialist in commodity risk management share techniques, analysis and insights that only his thirty plus years of trading and risk management experience can bring. With Mr. Weissman’s knowledge and guidance you’ll gain a practical understanding of outright price risk, basis risk and optionality risk as well as the pros and cons of mitigating each of these risks.

Topics covered include:

  • How to establish a corporate risk policy
  • Implementation of broad-based and specific trading controls to mitigate operational risk
  • Outright price risk, correlation risk and optionality risk
  • Designing a robust risk management program
  • Determining hedge objectives and strategies
  • Implementation of a daily mark-to-market
  • The pros and cons of various VaR models and stress testing techniques
  • Hedge implementation, monitoring and adjustment
  • Weissman’s Risk Management Pyramid
  • How statistical theories relate to Value-at-Risk calculations
  • How non-normal distributions such as skewness and kurtosis impact VaR calculations
  • Extreme Value Theory and GARCH
  • Modeling for liquidity risk
  • Measurement, management and mitigation of credit risk including CVaR, KMV, Z-Score and the ratings agency approach