Financial Risk Management Training Course
Figure 1 Financial Risk Management Training Course – PD Model using the Merton structured approach
The trouble with teaching Financial Risk Management Online is with the amount of ground a trainer has to cover within the allocated two days. The Financial Risk Management Training course reference was put together as a pre-reading tool that clients and students could use to get up to speed with the content and the materials of our financial risk training workshop.
The two online courses on financial risk management are divided into an introductory course and an advance topics course.
The introductory course uses foundation building materials from Value at Risk & ALM and a few hands on cases. The introductory financial risk management course link includes podcasts, downloadable data sets, power point presentations and case studies. Case studies use spot exposure to oil and gold.
The Advance course focused on Excel model building using financial risk training themes covered earlier. We cover portfolio optimization, delta hedging, excel solver, credit risk and bank regulation. On the credit risk side we use market data to evaluate the probability of default of the USD LIBOR BBA Panel Banks – which leads to some interesting insights.
The objective was to mix and match financial risk management frameworks, case studies and hands on risk model building exercises. The solved solution uses a margin risk management case study for a commodities hedge fund and evaluate the usage of value at risk and the Merton structured approach to estimate Probability of Default, margin requirements, loss given default, capital allocation and a decision on future and additional exposure based on portfolio weights. Ideally you should take a look at the Sample Exam – Financial Risk Management Course – Past Final Exam which includes the solved solution and then decide if the two courses will teach you anything new.
Course content covers topics from the following core risk management themes:
- Introduction to Financial Risk Management
- Introduction to Value at Risk
- Introduction to Delta and Higher Order Hedging
- Asset Liability Management
- Probability of Default
Suggested training course instruction time is 36 hours spread over 12 days of classes with 3 hours per day. The outline and the course material require a heavy reading and in class modeling load and are not recommended for the light hearted.
Both courses were recently delivered to a group of 20+ GMBA students at the SP Jain campus in Dubai and are based on the tested materials used as part of our treasury and risk management training practice. Content and case studies for the training courses have been developed as a result of consulting work done for clients in the treasury, risk and investment management sectors over the last 10 years.