Certificate in Derivatives

Risk Management Using Derivatives It is essential for financial managers to identify risks accurately and to use the right control techniques. This series begins by introducing the different types of risk, and explains how to use the risk cycle to recognize these risks and control them. The series then moves on to the different types of derivative techniques that can be used to manage risk, including FX risk, short- and long-dated domestic interest rate risk, long-dated foreign interest rate risk and equity risk. In the final lesson, participants are presented with several case studies that apply what they've learned about using derivatives to manage risk. Who should take this course:   Risk managers and assistants, trading assistants, finance professionals, auditors and controllers. Prerequisites:   Derivative Instruments or equivalent level of knowledge Training Hours/CPE Credits:   7     Modules Introduction to Risk Management       Module Code :  risk_3009 Level :  Basic Training Hours/ CPE Credits :  1 Module Description: In this module you'll learn about why we manage risk, the different types of risk, risk categories, how risks arise and how diagramming cash flows can illustrate financial risks and the effect of financial products on managing that risk. Learning Objectives: After completing this module, you'll be able to: Identify the different categories of risk. Recognize how risks arise. Identifying Risks       Module Code :  risk_3010 Level :  Basic Training Hours/ CPE Credits :  1 Module Description: This module will explore the 5 steps of the Risk Cycle: identifying, quantifying, defining the strategy, implementing and monitoring the risk. Then you will go on to learn about Natural or Internal Hedging. Learning Objectives: After completing this module, you'll be able to: Recognize the elements of the risk cycle Identify the different types of risk (translation, transaction, contingent, and external risks) Explain the Quantification, Policy, Implementation and Monitoring steps of the Risk Cycle Describe the benefits of internal hedging Managing Foreign Exchange Risk Using Derivatives       Module Code :  risk_3011 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module will show you how to identify foreign exchange risk, then introduce forward foreign exchange contracts, non-deliverable forward foreign exchange, and currency options. Learning Objectives: After completing this module, you'll be able to: Recognize applications for forward foreign exchange contracts to manage FX risk Identify the use of non-deliverable forward foreign exchange contracts in the management of FX risk Recognize the use of currency options in the management of FX risk Managing Short-Dated Domestic Interest Rate Risk using Derivatives       Module Code :  risk_3012 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module will discuss how to manage short-dated domestic interest rate risk with derivatives. In particular, looking at how to identify short-dated domestic interest rate risk, and how to use forward interest rate agreements, exchange traded futures, and interest rate options to manage this type of risk. Learning Objectives: After completing this module, you'll be able to: Use forward interest rate agreements (FRAs) to manage short dated interest rate risk. Use exchange traded futures to manage short dated interest rate risk. Recognize situations applicable for, and apply interest rate options to manage short dated interest rate risk. Managing Long-Dated Domestic Interest Rate Risk Using Derivatives       Module Code :  risk_3013 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module covers managing long-dated domestic interest rate risk using derivatives. Learning Objectives: After completing this module, you'll be able to: Explain how interest rate swaps can be used to manage long-dated domestic interest rate risk. Explain how swaptions can be used to manage long-dated domestic interest rate risk. Managing Long-Dated Foreign Interest Rate Risk Using Derivatives       Module Code :  risk_3014 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module covers how to use derivatives to manage long-dated foreign interest rate risk. When we speak of this type of risk, we are generally referring to a translation risk, where a capital acquisition has been made overseas. These long-term assets could be production plants such as factories, other buildings, plants and machinery, or in some cases, the acquisition of an overseas company. The primary tool for managing this type of risk is a currency swap. Learning Objectives: After completing this module, you'll be able to: Recognize long-dated foreign interest rate risk exposure Explain how to use a currency swap to manage long-dated foreign interest rate risk Managing Equity Risk Using Derivatives       Module Code :  risk_3015 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module looks at managing equity risk from the investor's perspective. Learning Objectives: After completing this module, you'll be able to: Define equity risk and beta. Explain the role of stock index futures in managing equity risk.