Risk management and control have emerged as crucial functions in the financial industry, demanding highly specialized skills that are vital to the success of financial institutions. It is the Great Financial Crisis of 2007-2009 that, given its systemic dimension, acted as a new wake-up call. And the recent bank failures (in 2023) are again reinforcing the need for professionals with the required technical expertise. The 3-day Financial Risk Management program aims to help the participants to develop essential financial risk management skills in a consistent way, with unique insights.
Note: this program can function as a (first) practical step in the preparation of exams related to globally recognized designations, such as the Financial Risk Manager (FRM) charter – for the FRM Part 1 exam.
How you will benefit
- Explore the Core of Risk Management: Immerse into risk management’s heart, unveiling in particular strategic risk intricacies. Armed with integrated risk management fundamentals, craft adapted and adaptable frameworks
- Unlock Key Risk Indicator Potency: Experience the power of Key Risk Indicators (KRIs), demystifying the dynamic of risk changes. Navigate challenges with strategic precision using these hidden keys
- Embark on Risk-Return Odyssey: Thrillingly delve into risk-return dynamics, navigating financial landscapes adeptly. Uncover the symbiotic relationship that fuels decision-making success.
- Get a sound understanding of practical quantitative analysis: it is about what is necessary
- Futures/Forwards and options (and beyond) demystified Patrick’s way with his step-by-step approach: witness complex concepts unravel into simplicity, giving you the tools to navigate these instruments with easiness
- Explore the inner workings key risk models, with in particular
– Value-at-Risk (VaR): gain an overview of key approaches
– Operational risk management: using Artificial Intelligence for concrete applications (introduction)
The program is developed in a very interactive way. Exercises and practical business cases are used throughout to illustrate the concepts.
Program length
3 days
| Day 1 | 09:00 – 17:30 |
| Day 2 | 09:00 – 17:30 |
| Day 3 | 09:00 – 17:30 |
Next steps
We offer carefully crafted learning paths designed to help you dive deeper into various facets of finance. Take the next step in your professional learning path by choosing one or more of our specialized programs, for example:
Core Concepts of Risk Management
- Developing an in-depth understanding of risk, including Strategic Risk [Interactive Exercise: Effectively addressing Strategic Risk]. Comprehensive exploration of the Risk Management Process and synthesis of its components.
- Introduction to Key Risk Indicators: metrics for Risk Assessment and Monitoring
- Illustrating Extreme Situations (Tail Risk): Learning from high-impact situations
- Unpacking the CAPM (Capital Asset Pricing Model): Exploring Risk-Return relationship in Equity investments
- Performance Measurement Techniques: Including examination of the Information Ratio
- Multi-Factor Models: a practical application
- Ethical considerations within Risk Management
Quantitative Analysis
- Probabilities in finance: A short overview of relevant probability theory and applications. An introduction to Bayes’ theorem
- Statistical foundations: Basics of statistics, including various probability distributions and discussions on correlation, with a detailed analysis of Normal and Student’s t-distributions
- Hypothesis testing: Understanding hypothesis testing and its significance in decision-making under uncertainty
- Regression Analysis: Exploration of regression analysis, including ANOVA and addressing common issues
- Simulation techniques: Basics of simulations and their role in risk modeling and analysis.
Financial Markets and Instruments
- Market Structure: Examination of financial markets, their organization, and the participants involved
- Briefly on cash (basic) instruments
- Derivatives: An overview of derivative instruments, including forward/futures, swaps, and options, with a focus on strategies ranging from simple to (more) complex combinations, product innovation as well as unusual approaches to managing risks
- Futures and forwards: Understanding how futures/forwards markets operate, including margin processes, basis risk, and determining the appropriate number of contracts
- Fixed income instruments: The more complex fixed income securities (especially a US perspective)
About Futures/Forwards and Options: Pricing, Valuations and Risks Measures
- Futures and Forwards and Swaps: Explanation of pricing and valuation through practical examples
- Option Pricing: Application of classic models for option pricing, including a manual approach
- Managing Option Risk: Understanding the Greeks, option risk management with in particular the application of delta hedging
Key Risk Models including specific aspects of Operational Risk
- Value-at-Risk (VaR): An overview of VaR, key approaches & evaluation methods, and its (non-)use in decision-making within specific market contexts
- Stress Testing: Implications of stress testing and scenario analysis, with a focus on its application in a large bank’s risk management
- Expected Shortfall / Conditional VaR & Beyond: unusual exploration of expected shortfall and conditional VaR as risk measures
- Interest Rate Risk Management: Critical elements of interest rate risk management
- Credit Risk Management: Calculations of credit spreads and evaluation of default risk
- Operational Risk Management: An overview of operational risk management, including its capital dimension and an introduction to the application of Artificial Intelligence
Program preparation
There is some preparatory work required for this program. Pre-readings consist of case materials, chapters of a book and/or a few articles. These materials will be made available on a password protected webpage a few weeks prior to the program.
To ensure maximum benefit from the program for participant and fellow-participants, we strongly advise to prepare prior to attending.
Read more
> Patrick Oberhaensli: ‘The key to effective financial risk management is front experience.’
The Financial Risk Management program is relevant to a broad range of professionals at various financial institutions but also Corporates and Professional Investors. It is of particular interest to the following functions:
- Financial Risk Managers (like Market Risk) with some experience
- Risk Management Auditors
- Senior Compliance
- Financial Product Sales and Senior Back-Office team members
Please contact us should you feel the need to verify your level of knowledge, and/or the relevance of your work context.
Is this program not the right fit for you?
We offer other programs which you might find more interesting or useful, such as:
