The format of this course is a Live Webinar. A detailed set of instructions on the Live Webinar will be sent to you closer to date.


Programme Objective

This intense course heightens the participants' attention to various issues at the forefront of risk management and implementation.

It explains why risk management is becoming the key priority for government, banks and private corporations.

• Understand the role of risk management department, schedule of risks and risk management framework.
• Measure market risk to understand the weaknesses and limitations of VAR. How to use the new market risk valuation techniques.
• Construct credit spread and default risk using derivatives.
• Manage credit portfolio and to analyze the new paradigm.
• Understand how departmental risk is being assessed and managed.
• Real time monitoring of risk management.
• Apply financial instruments (derivatives and non-derivatives) to manage treasury risk.
• Explore the latest risk management guidelines, pitfalls and what next?
• Develop a focused management information structure to promote risk awareness and facilitate control.

The following case studies will be analyzed-

• Operational Risk & Market Risk : Societe General- China Aviation Oil -Sumitomo
• Concentration/ Counterparty Risk : Lehman Brothers- Hedge Funds LTCM
• Systemic Risk : Asian Financial Crisis
• Credit/Default Risk: Latest Sovereign Debt Crisis

Programme Outline

Day One


SESSIONS 1 AND 2
Topic: Introduction and Overview

This session kick starts the programme by looking at the overview of risk management. You will learn the classification of major risks in respect of market, credit and operational risks. Risk Management organizational structure and functions will also be discussed.

What is Risk Management?

• Process of Financial Risk Management and Implication
• Classification of Risks
• Market Risks and the affecting factors: Foreign Exchange Risk; Interest Rate Risk; Equity Price Risk
• Credit Risk
• Operational Risk
• Other Risks (Liquidity and Systemic)
• The Role of a Risk Management Department, Schedule of Duties, and Risk Management Framework
• Risk Management Organizational Structure and Functions (Key Responsibilities)

SESSION 3

Topic: Measuring Market Risk

This session examines the market risk measurement with the use of Value-at-Risk (VaR). You will learn the real life application of a model as well as criticism of VaR methods.

Examples and illustration will be included and a case profile on Merrill Lynch will be covered.

• An outline of Value at Risk (VaR)
• How Reliable is VaR and Critics of VaR.
• Case Profile - Merrill Lynch
• Managing Market Risks in Trading Book

SESSION 4

Topic: Credit Risk Management

This session examines credit risk management and measurement. The BIS add-on approach as well as Basel Risk charges for derivatives will be discussed.

Examples and illustration will be included.

• Credit Risk Measurement
• Credit Risk Management
• Applying VaR principle to Credit Control
• Managing Credit Risk in Loans Portfolio - Practical Consideration

Day Two

SESSION 5

Topic: Operational Risk Management

Operational Risk Management is a very broad concept. In this session, the importance of operational risk management is examined with the use of case studies.

• Controlling Operational Risk Measurement
• Other aspects of Operational Risk Management
• Quantifying Operational Risk - Latest Modelling Techniques

SESSION 6

Topic: Available Derivatives Instruments to Manage Financial Risk: Practical Applications

In this session, we will look at managing financial risks through the use of various types of derivatives instruments.

Illustrative examples will be included to detail the application of various techniques mainly to value Toxic assets in the bank books.

SESSION 7

Topic: Regulatory Requirements for Risk Management – Bank Recapitalization Issues- Sovereign Debt Crisis Management European Countries - Basel II and Basel III Accord Implications

In this session, we will look at the regulatory requirements for risk management. Comparison between Basel II and Basel III.

• Basel III requirements
• Sovereign Debt Crisis Proposed Solutions
• Capital Adequacy Requirement (CAR) Detailed Calculation

SESSION 8

Topic: Liquidity Risk Management

In this session, we will look at risk measures and methodology for liquidity risk management. Practical Considerations and lessons learnt from the current crisis will be covered.

• Risk Measures and Methodology
• Relevance and Practical Considerations

SESSION 9

Topic: Risk Management Organization and Relationship with Internal Audit and Compliance

In this session, we will look at the various types of reporting

• Risk reporting classification
• Format for various types of risk reporting

Pre-requisites

Please take note of the following admission requirements:

• Trainings will be conducted on Zoom platform, thus video camera and microphone are compulsory
• Mandatory for video camera to be turned on throughout the course
• Display your official name (as per NRIC) in Zoom, to facilitate attendance taking

Training Methodology
Lecture style, with Exercises/Case Studies

Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This training course is specifically designed for decision makers in all organizations and hence is involved in the management of risks, aimed mainly at: CEOs, CFOs, COOs, Finance Managers, and Risk Managers and Officials with responsibility for Risk Management Global Heads of Operational Risk, Heads of Risk Management, Heads of Audit, Operational Risk Analysts, Group Risk, Risk & Contingency Managers, Finance Directors, Compliance/Internal Auditors Risk Control Consultants Government Agencies dealing with Risks, as well as Government bodies regulating Risk Areas Insurers, Brokers, Loss Adjusters Accountants

Programme Facilitator(s)