Training Course on Financial Risk Management Strategies

Course Outline

Module 1: Introduction to Financial Risk Management

ü  Defining Financial Risk and the Risk Management Process

ü  Types of Financial Risks: Market, Credit, Liquidity, Operational

ü  Understanding Risk Appetite and Risk Tolerance

ü  The Role of a Risk Management Function in an Organization

ü  Practical Session: Case study analysis of a major corporate failure (e.g., Lehman Brothers, Enron) to identify key risk management breakdowns.

Module 2: Risk Identification and Assessment Frameworks

ü  Techniques for Risk Identification: Brainstorming, SWOT, Checklists

ü  Qualitative Risk Assessment: Risk Mapping and Heat Maps

ü  Introduction to Governance Frameworks (COSO, ISO 31000)

ü  Developing a Corporate Risk Register

ü  Practical Session: Developing a risk register and a risk heat map for a sample company.

Module 3: Market Risk Management

ü  Identifying Sources of Market Risk: Interest Rate, Currency (FX), Equity, Commodity

ü  Measuring Market Risk Exposure

ü  Strategies for Managing Interest Rate and Currency Risk

ü  Portfolio Diversification and its Limits

ü  Practical Session: Simulation exercise on managing a foreign exchange exposure portfolio in a volatile market.

Module 4: Credit Risk Management

ü  Understanding Counterparty Risk and Default Risk

ü  Credit Scoring Models and Credit Analysis Techniques

ü  Managing Credit Risk in Loan Portfolios and Accounts Receivable

ü  Introduction to Credit Derivatives (e.g., Credit Default Swaps)

ü  Practical Session: Case study on assessing the creditworthiness of a corporate client using financial statements.

Module 5: Operational and Liquidity Risk Management

ü  Sources of Operational Risk: People, Processes, Systems, External Events

ü  Tools for Managing Operational Risk: Key Risk Indicators (KRIs), Loss Data Collection

ü  Understanding Liquidity Risk and Funding Risk

ü  Asset-Liability Management (ALM) Techniques

ü  Practical Session: Group exercise to identify potential operational risks in a key business process and propose mitigation controls.

Module 6: Quantitative Analysis for Risk Management

ü  Introduction to Value at Risk (VaR)

ü  Calculating VaR: Historical Simulation and Parametric Methods

ü  Understanding Volatility and Correlation

ü  Introduction to Monte Carlo Simulation for Risk Analysis

ü  Practical Session: Using spreadsheet software to calculate the Value at Risk (VaR) of a simple investment portfolio.

Module 7: Derivatives and Hedging Strategies

ü  Introduction to Derivatives: Forwards, Futures, Options, and Swaps

ü  Using Derivatives to Hedge Market Risks (Currency, Interest Rate)

ü  Developing a Hedging Policy and Program

ü  Accounting for Hedges and Derivatives

ü  Practical Session: Designing a hedging strategy using options and forwards to mitigate currency risk for an import/export business.

Module 8: Stress Testing and Scenario Analysis

ü  The Importance of Stress Testing beyond VaR

ü  Designing Scenarios: Historical and Hypothetical

ü  Conducting Stress Tests on Portfolios and Balance Sheets

ü  Integrating Stress Test Results into Strategic Planning

ü  Practical Session: Conducting a scenario analysis on a company's financial health based on a sudden economic shock (e.g., interest rate hike).

Module 9: Regulatory Frameworks and Compliance

ü  Overview of the Global Regulatory Environment

ü  Deep Dive into the Basel Accords (Basel I, II, III)

ü  Capital Adequacy Requirements and Calculations

ü  Impact of Regulations on Risk Management Practices

ü  Practical Session: Group discussion analyzing the compliance challenges and strategic implications of Basel III for different financial institutions.

Module 10: Developing and Implementing an Enterprise Risk Management (ERM) Strategy

ü  Moving from Siloed Risk Management to an Integrated ERM Framework

ü  The Role of the Board and Senior Management in ERM

ü  Creating a Risk-Aware Culture within the Organization

ü  Risk Reporting to Key Stakeholders

ü  Practical Session: Developing an outline for an organization-wide Enterprise Risk Management (ERM) policy document.

About Our Trainers

Our facilitators are seasoned industry experts with extensive experience in financial risk management, treasury operations, and corporate finance. They combine deep theoretical knowledge with practical, on-the-ground experience from working with multinational corporations, financial institutions, and regulatory bodies. Their expertise in adult learning principles ensures a training experience that is engaging, participatory, and highly relevant to the real-world challenges faced by participants.

Quality Statement

Phoenix Training Center is committed to delivering high-quality, impactful training that meets the evolving needs of finance professionals. We ensure our course content is current, practical, and aligned with global best practices. Participant feedback is integral to our continuous improvement process, guaranteeing a valuable and satisfying learning experience.

Admission Criteria

ü  Participants should be reasonably proficient in English. 

ü  Applicants must live up to Phoenix Center for Policy, Research and Training admission criteria.

Terms and Conditions

1. Discounts: Organizations sponsoring Four Participants will have the 5th attend Free
2. What is catered for by the Course Fees: Fees cater for all requirements for the training – Learning materials, Lunches, Teas, Snacks and Certification. All participants will additionally cater for their travel and accommodation expenses, visa application, insurance, and other personal expenses.
3. Certificate Awarded: Participants are awarded Certificates of Participation at the end of the training.
4. The program content shown here is for guidance purposes only. Our continuous course improvement process may lead to changes in topics and course structure.
5. Approval of Course: Our Programs are NITA Approved. Participating organizations can therefore claim reimbursement on fees paid in accordance with NITA Rules.

Booking for Training

Simply send an email to the Training Officer on training@phoenixtrainingcenter.com and we will send you a registration form. We advise you to book early to avoid missing a seat to this training.

Or call us on +254720272325 / +254737296202

Payment Options

We provide 3 payment options, choose one for your convenience, and kindly make payments at least 5 days before the Training start date to reserve your seat:

1. Groups of 5 People and Above – Cheque Payments to: Phoenix Center for Policy, Research and Training Limited should be paid in advance, 5 days to the training.
2. Invoice: We can send a bill directly to you or your company.
3. Deposit directly into Bank Account (Account details provided upon request)

Cancellation Policy

1. Payment for all courses includes a registration fee, which is non-refundable, and equals 15% of the total sum of the course fee.
2. Participants may cancel attendance 14 days or more prior to the training commencement date.
3. No refunds will be made 14 days or less before the training commencement date. However, participants who are unable to attend may opt to attend a similar training course at a later date or send a substitute participant provided the participation criteria have been met.

Tailor-Made Courses

We understand that every organization has unique training needs. Phoenix Training Center offers tailor-made courses designed to address specific requirements and challenges faced by your team or organization. Whether you need a customized curriculum, a specific duration, or on-site delivery, we can adapt our expertise to provide a training solution that perfectly aligns with your objectives. Contact us to discuss how we can create a bespoke training program for you. For further inquiries, please contact us on Tel: +254720272325 / +254737296202 or Email training@phoenixtrainingcenter.com

Accommodation and Airport Pick-up

For physical training attendees, we can assist with recommendations for accommodation near the training venue. Airport pick-up services can also be arranged upon request to ensure a smooth arrival. Please inform us of your travel details in advance if you require these services. For reservations contact the Training Officer on Email: training@phoenixtrainingcenter.com or on Tel: +254720272325 / +254737296202