Financial Risk Management and Corporate Governance

Overview:

Introduction:

Financial Risk Management involves identifying, assessing, and mitigating various financial risks to protect an organization’s stability, using tools like VaR and stress testing. Corporate Governance ensures ethical decision-making, accountability, and proper oversight, integrating risk management into decision-making processes to safeguard long-term organizational success. This training program is designed to equip professionals with the knowledge and skills necessary to manage financial risks effectively and uphold robust corporate governance standards. In today’s dynamic financial landscape, understanding the intricacies of risk management and governance is crucial for organizational success and sustainability.

Program Objectives:

At the end of this program, participants will be able to:

• Identify financial risks and their impact within risk management frameworks.

• Integrate VaR, stress testing, and derivatives techniques to manage market risk.

• Assess and manage credit risk using rating systems, credit derivatives, and securitization.

• Identify operational and liquidity risks, develop management programs, and conduct mitigation strategies.

• Integrate risk management into corporate governance, enhancing board oversight and ethical decision-making.

Targeted Audience:

• Financial managers and analysts.

• Risk management professionals.

• Corporate governance officers.

• Board members and executives.

• Compliance officers.

• Internal auditors.

Program Outline:

Unit 1:

Overview of Financial Risks and Risk Management Frameworks:

• Types of financial risks: market, credit, operational, and liquidity risks.

• Risk identification and measurement techniques.

• Impact of financial risks on organizations.

• Key components of a risk management framework.

• Regulatory requirements and industry standards (Basel III, COSO ERM).

Unit 2:

Market Risk Management:

• Understanding market risk and its sources.

• Techniques for managing market risk: Value-at-Risk (VaR), stress testing, and scenario analysis.

• Role of derivatives in market risk management.

• Tools for market risk monitoring and reporting.

Unit 3:

Credit Risk Management:

• Credit risk assessment and rating systems.

• Managing credit exposure and credit risk mitigation techniques.

• Role of credit derivatives and securitization.

• Credit portfolio management strategies.

Unit 4:

Operational and Liquidity Risk Management:

• Identifying and assessing operational risks.

• Developing an operational risk management program.

• Incident management and business continuity planning.

• Liquidity risk measurement and monitoring tools.

• Strategies for managing liquidity risk.

Unitr 5:

Corporate Governance and Integration with Risk Management:

• Overview of corporate governance principles and frameworks (OECD, Cadbury Report).

• Roles and responsibilities of the board of directors and executive management.

• Integrating risk management practices into corporate governance frameworks.

• Enhancing board oversight of risk management.

• Ethical decision-making and corporate responsibility.