Financial Risk Management and Derivatives
The training course is part of the series “Applied Finance in Business Programme“.
How do financial markets determine interest rates, foreign exchange rates and other financial variables affecting your company?
Are derivatives useful or only for gamblers? How can you make use of derivatives to protect your company from risks and add value to it?
Learn how to hedge the financial risk of your firm, whether it is the price you are hedging against or interest rates or currency fluctuations.
How are derivatives presented in the accounts of a company, and how do they impact the financial statements? What is “Hedge Accounting” and what are its benefits?
Key features of this course:
- This is an intensive, interactive workshop based on case studies.
- After this module, you will understand how derivatives work and how to practically apply key financial risk management techniques.
- For additional savings, this module can be booked as part of a package offer.
This workshop is addressed to participants without formal education in finance, who, as part of their work duties, are required to exhibit an understanding of methods for hedging financial risks and how the application of derivatives impacts the financial performance of companies.
This workshop is especially recommended to:
- Managers of finance or non-finance functions
- Internal and External Auditors
- All professionals wishing to broaden and deepen their skills in finance
After completing this training module, you will:
- Feel more confident to take part in discussions on current financial and economic issues
- Apply hedging techniques in real life
- Be able to identify financial risks to which your company is exposed and propose practical solutions to mitigate them
- Learn how derivatives are valued in the financial market and in the books
- Understand the concept of hedge accounting
- Interest rates – what they are, how they are determined, why they change (based on current market situation)
- Foreign exchange rates – analysis of current trends in major currency pairs
- Financial markets structure – segments, markets and players
- Financial derivatives and their basic mechanics:
- Forwards and futures
- Options
- Swaps
- Case studies of how derivatives are used to hedge financial risks, including a hedge of currency exposures with forwards / futures and options and a hedge of interest rate risk exposure with interest rate swaps.
- Valuation and presentation of derivatives in the Financial Statements of a company and introduction to Hedge Accounting
- What happens when derivatives are misused: lessons learned from famous financial risk management failures (incl. bankruptcy of Metallgesellschaft and Baring Bank and the so-called “currency options crisis” of 2008)
Maciej Kocon - consultant and trainer specializing in risk management, financial markets and accounting for financial instruments. He delivers courses aimed at financial sector institutions on financial markets, risk management and corporate finance.
