A 1-day Risk
Management issues primer for market professional who are already
experienced in capital markets activities and wish to understand more of
the issues from a risk perspective. Particular emphasis is given to
market, credit and operational risk aspects of trading operations,
particularly banks and securities firms:
how to assess risk in a financial institution and for position
how to quantify risks in terms of probability distributions
techniques to assign risk factors to any operation
techniques to manage risks using tradition control techniques and
new methodologies such as VAR
market professionals with at least 1-year experience (some
understanding of markets/products helpful)
Traders, sales, support, middle office
Introduction to risk:
discussion of risk in financial institutions as probability of loss, and
how some risks are more difficult to quantify, the difference between
position keeping and summary risk management.
Concepts of Risk: variability
of events and review of probabilistic descriptions of risk.
Market data: How market
data can be used to build up a risk assessment framework, particularly in
respect of market risk techniques such as VaR.
Risk measurement: covers sensitivity (V01, delta, etc) as
well as VaR, scenarios, and stress test risk measurement methods and their
Special types of risk: particular aspects of products and
markets that are non-standard and lead to unusual or unexpected risk
profiles including liquidity, event risks, and many others.
Quantification and ranking of risks: Quantitative
examination of risk from market, credit and operational perspectives and
how these fit together as a whole within an institution, includes VaR
Managing risk: using the derived information to formulate
and implement risk policy and managing and controlling the risks via the
practical implementation of that policy including limits, stop losses to
senior management oversight and control.
Risk systems: how software can help in the risk management
process, but understanding the limitations and responsibilities of the
control culture as separate to just the “black box”.
Case Study: Risk
management analysis study using market risk data and example portfolios.
comprehensive and extensively illustrated Handout Notes (see samples
Note: we can
easily include other topics, which you have an interest in (and are not listed
here). Please "vote" for your preferences for additional topics,
products, and markets via the sign-up process (web or
hardcopy which we can fax/mail to