This a workshop for those financial institution or corporate executives who, while never being day-to-day financial risk managers themselves, must be aware of the implications of financial risk management for the continued viability of their organisation.

The workshop covers the fundamentals of financial risk and the appropriate use of financial derivatives in a risk management context.

Managing financial risk is discussed in terms of general descriptive measures. Perhaps the most general contemporary framework for financial risk management, value at risk (VAR), is covered.

This workshop discussion of risk management tools and techniques will remove the unwarranted, and often intimidating, mystique of financial risk management.

Financial Risk

• The nature of financial risk
• Sources of financial risk
• What can be done about financial risk?
• General role of financial engineering
• Defining hedging objectives

Managing interest rate risk

• Using forward rate agreements and futures
• Using swaps
• Comparison of interest rate risk management techniques

Managing currency risk

• Forwards, futures and options
• Comparison of strategies

Managing equity risk

• Stock index futures and options
• Portfolio insurance

Measuring risk

• Mark to market
• Capital allocation
• Value at risk