Course Detail(BF010 : Hedging Corporate Financial Risk with Derivatives: Practical Applications)

BF010 : Hedging Corporate Financial Risk with Derivatives: Practical Applications

14.00 CPE Hours (Others)
Classroom

Programme Objective

Managing corporate financial risk is an increasingly important aspect of corporate financial management. This seminar provides insights into three difficult aspects of risk management: interest rate risk, commodity price risk and foreign currency exposure. The instructor employs modern principles of finance and investment to address the practical problems of measuring and managing corporate financial risk with the latest Derivative products in the context of business uncertainties, accounting imperfections and incomplete markets.

 
  • Explain the basics of Derivatives and how to use them in Managing Corporation Financial Risks
  • Identify the Different Classes of Hedging Instruments with Derivatives
  • Understand the Limits of Hedging, Arbitrage and Speculation
  • Understand Accounting Treatment with Derivatives
  • Explain the Principles of Hedging Strategies with Derivatives
  • Explain how Derivatives can be used to manipulate Corporation Accounts
  • Understand how the Structural Products with Derivatives can harm a Corporation Financial Account


The following case studies will be analyzed:

  • BMW Currency Exposure Management Strategies With Derivatives
  • Carrefour Use of Derivatives for Exposure Management
  • Microsoft Practical Approach to the Use of Derivatives


 

Programme Outline

1. Introduction

  • Basic Characteristics and Understanding of Derivatives
  • Most Popular Derivative Products used by Corporations for Financial Risk Management
  • Reasons for using Derivatives
  • Basic Terminology used in Derivative Markets
  • Distinction Between Speculative, Hedging and Arbitrage Positions with Derivatives
  • Price Quotation Explained
2. Corporate Financial Risk Explained and Where to Fit in Derivatives
  • Transactions, Accounting and Economic Exposure
  • Integration of Financing and Hedging Decisions and How Derivatives Can Help
3. Hedging Interest Rate Risk With Derivatives (Products – Pricing – Applications)
  • Forward - Forward
  • Forward Rate Agreements (FRAs)
  • Interest Rate Futures
  • Interest Rate Swaps
  • Interest Rate Options
  • Caps. Floors, Collars, Swaptions
  • Credit Derivatives
  • Single Name
  • Credit Default SwapCredit Linked Notes
  • Total Return Swap
  • Multi Name
  • CDO, Synthetic CDO’s
  • Hedging with CDS
  • Case Study: use of Interest Rate Derivatives to Hedge Interest Rate Risk
4. Hedging Foreign Currency Risk with Derivatives (Products – Pricing – Applications)
  • Currency Options
  • Currency Futures
  • Forward
  • Non Deliverable Forward
  • Currency Swap
  • Quanto Swap
  • Currency ETFs
  • Guidelines for the Use of Different Hedging Instruments
  • Case Study: Use of Currency Derivatives to Hedge Exchange Rate Exposure
5. Commodity Price Risk management (Products – Pricing – Applications)
  • Commodity Price Volatility Hedging Techniques
  • Self-Insurance
  • Futures, Forward, Swap Applications
  • Caps, Collars
  • Capped Swaps, Capped Collars
  • Zero Cost Collar
  • Case Study: Use of Derivatives to Manage Commodity Price Risk
6. Derivatives Risk, How Manipulations and Fraud Take Place
  • Societe General Bank, Barrings Bank
  • Structured Products in Corporation Debts Financing
  • Enron Case
  • Hedge Ratios Manipulation Techniques
  • Case Study: on Manipulation with Derivatives
7. Derivatives Accounting and Reporting
  • Off Balance Sheet Items
  • Accounting for Derivatives
  • Disclosure
  • Case Study for Derivatives Accounting
8. Conclusions

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

Competency Mapping

Others = 14.00 Hours

Schedule & Fees

Date & Time

13 Aug 2020 (9:00 AM - 5:00 PM)
14 Aug 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 695.50
For Non-Members: $ 834.60

Programme Facilitator(s)

Prof Malick SY, PhD

Venue

60 Cecil Street
ISCA House
Singapore 049709

Date & Time

22 Aug 2019 (9:00 AM - 5:00 PM)
23 Aug 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Prof Malick SY, PhD

Date & Time

01 Nov 2018 (9:00 AM - 5:00 PM)
02 Nov 2018 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Prof Malick SY, PhD

Date & Time

18 Jul 2018 (9:00 AM - 5:00 PM)
19 Jul 2018 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Prof Malick SY, PhD

Testimonial

Funding

No funding Available!

Programme Facilitator(s)


Prof Malick SY, PhD

Prof Malick SY is the Managing Director of a financial consulting firm with offices in South East Asia. Specializing in Corporate Consulting and Risk Management, his expertise in these areas is recognized internationally. He has been a Director of Risk Management at the Kuala Lumpur Stock Exchange and has been member of the Singapore Exchange Corporate Advisory Committee in Derivatives (SGX-DT).

With more than 25 years of experience in financial consulting and advisory to many financial institutions in Europe, Asia and Australia, his corporate clients include DBS Bank (Singapore), Singapore Exchange (SGX), Credit Suisse (Singapore), Bursa Malaysia, Association of Insurance and Asset Management Companies (Malaysia). He has set up the risk management department for many companies in Asia. He was the course leader for the derivative compulsory courses in getting the Options, Futures licenses organized by the Stock Exchanges of Singapore and Malaysia.

Professor of Financial Management at the Royal Melbourne Institute of Technology (RMIT) University, Melbourne-Australia and a visiting Professor of Finance at the City University of New York (CUNY)-USA, his time is shared between graduate level teaching, research activities and consulting. His research interest is in risk management, banking and financial markets especially derivatives and foreign exchange.

He won the Chicago Board of Trade (CBOT-USA) award.

 

Programme Objective

Managing corporate financial risk is an increasingly important aspect of corporate financial management. This seminar provides insights into three difficult aspects of risk management: interest rate risk, commodity price risk and foreign currency exposure. The instructor employs modern principles of finance and investment to address the practical problems of measuring and managing corporate financial risk with the latest Derivative products in the context of business uncertainties, accounting imperfections and incomplete markets.

 
  • Explain the basics of Derivatives and how to use them in Managing Corporation Financial Risks
  • Identify the Different Classes of Hedging Instruments with Derivatives
  • Understand the Limits of Hedging, Arbitrage and Speculation
  • Understand Accounting Treatment with Derivatives
  • Explain the Principles of Hedging Strategies with Derivatives
  • Explain how Derivatives can be used to manipulate Corporation Accounts
  • Understand how the Structural Products with Derivatives can harm a Corporation Financial Account


The following case studies will be analyzed:

  • BMW Currency Exposure Management Strategies With Derivatives
  • Carrefour Use of Derivatives for Exposure Management
  • Microsoft Practical Approach to the Use of Derivatives


 

Programme Outline

1. Introduction

  • Basic Characteristics and Understanding of Derivatives
  • Most Popular Derivative Products used by Corporations for Financial Risk Management
  • Reasons for using Derivatives
  • Basic Terminology used in Derivative Markets
  • Distinction Between Speculative, Hedging and Arbitrage Positions with Derivatives
  • Price Quotation Explained
2. Corporate Financial Risk Explained and Where to Fit in Derivatives
  • Transactions, Accounting and Economic Exposure
  • Integration of Financing and Hedging Decisions and How Derivatives Can Help
3. Hedging Interest Rate Risk With Derivatives (Products – Pricing – Applications)
  • Forward - Forward
  • Forward Rate Agreements (FRAs)
  • Interest Rate Futures
  • Interest Rate Swaps
  • Interest Rate Options
  • Caps. Floors, Collars, Swaptions
  • Credit Derivatives
  • Single Name
  • Credit Default SwapCredit Linked Notes
  • Total Return Swap
  • Multi Name
  • CDO, Synthetic CDO’s
  • Hedging with CDS
  • Case Study: use of Interest Rate Derivatives to Hedge Interest Rate Risk
4. Hedging Foreign Currency Risk with Derivatives (Products – Pricing – Applications)
  • Currency Options
  • Currency Futures
  • Forward
  • Non Deliverable Forward
  • Currency Swap
  • Quanto Swap
  • Currency ETFs
  • Guidelines for the Use of Different Hedging Instruments
  • Case Study: Use of Currency Derivatives to Hedge Exchange Rate Exposure
5. Commodity Price Risk management (Products – Pricing – Applications)
  • Commodity Price Volatility Hedging Techniques
  • Self-Insurance
  • Futures, Forward, Swap Applications
  • Caps, Collars
  • Capped Swaps, Capped Collars
  • Zero Cost Collar
  • Case Study: Use of Derivatives to Manage Commodity Price Risk
6. Derivatives Risk, How Manipulations and Fraud Take Place
  • Societe General Bank, Barrings Bank
  • Structured Products in Corporation Debts Financing
  • Enron Case
  • Hedge Ratios Manipulation Techniques
  • Case Study: on Manipulation with Derivatives
7. Derivatives Accounting and Reporting
  • Off Balance Sheet Items
  • Accounting for Derivatives
  • Disclosure
  • Case Study for Derivatives Accounting
8. Conclusions

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

Competency Mapping

Others = 14.00 Hours

Programme Facilitator(s)

Prof Malick SY, PhD

Prof Malick SY is the Managing Director of a financial consulting firm with offices in South East Asia. Specializing in Corporate Consulting and Risk Management, his expertise in these areas is recognized internationally. He has been a Director of Risk Management at the Kuala Lumpur Stock Exchange and has been member of the Singapore Exchange Corporate Advisory Committee in Derivatives (SGX-DT).

With more than 25 years of experience in financial consulting and advisory to many financial institutions in Europe, Asia and Australia, his corporate clients include DBS Bank (Singapore), Singapore Exchange (SGX), Credit Suisse (Singapore), Bursa Malaysia, Association of Insurance and Asset Management Companies (Malaysia). He has set up the risk management department for many companies in Asia. He was the course leader for the derivative compulsory courses in getting the Options, Futures licenses organized by the Stock Exchanges of Singapore and Malaysia.

Professor of Financial Management at the Royal Melbourne Institute of Technology (RMIT) University, Melbourne-Australia and a visiting Professor of Finance at the City University of New York (CUNY)-USA, his time is shared between graduate level teaching, research activities and consulting. His research interest is in risk management, banking and financial markets especially derivatives and foreign exchange.

He won the Chicago Board of Trade (CBOT-USA) award.

 


Upcoming Schedule

Date & Time

13 Aug 2020 (9:00 AM - 5:00 PM)
14 Aug 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 695.50
For Non-Members: $ 834.60

Programme Facilitator(s)

Prof Malick SY, PhD

Venue

60 Cecil Street
ISCA House
Singapore 049709