Risk and Risk
Control
Objective:
comprehensive 3-day program to provide a solid understanding of risk within
trading operation and how that risk can be controlled.
·
Primarily
focusing on day to day management of risk operations
·
concepts
of risk from both a theoretical and practical standpoint.
·
practical
methods of measuring risk and techniques and practices to limit and constrain
risk to the desired level.
·
risk
systems – their uses and abuses in the risk control environment
·
real
world case studies of how risk arises and can be measured and controlled
including the use of VaR techniques and scenario analysis.
Audience:
market
professionals with at least 1-year experience
·
Management,
treasurers
·
Risk
Management
1)
Concepts
of risk:
big picture introduction including what risk is and is not, the basic tenants of
the markets and valuation, as well as difficulties.
2)
Market
risks and other types:
introduction to most tractable types of risk and the problems with others such
as operational risk.
3)
Risk
measurement:
methods such as VaR, scenario analysis, stress testing, point Greeks are
explored in order to quantify risks.
4)
Risk
management:
active and passive techniques used to manage risk such as dynamic rebalancing,
limits, stop losses.
5)
Risk
systems: systems
designed to capture, measure and report on risk have limitations and constraints
on what they can and cannot do, it is important to understand the output of such
systems and the limitations they are produced under.
6)
Risk
models – single contract and portfolio:
valuation and risk models for single contract derivative structure such as
Black-Scholes and BDT through to whole portfolio aggregation models such as VaR
and scenario analysis.
7)
Risk
control: once
risk can be measured how it can be controlled using both active and passive
techniques – stresses the importance of the role of the risk manager and
senior management involvement in the ALCO process.
8)
Market
specific risks: issues
specific to particular markets such as dividend risk in equities and finite
supply factors in commodity markets and how these influence risk measurement and
control techniques.
430
Pages of
comprehensive and extensively illustrated Handout Notes (see samples
here)
Plus copies of relevant TG2 Books/e-Books
Note:
Seminars can be tailored to your trading, risk, client, and systems needs.
Submit your needs, and/or "cut/paste" from other Seminars (see entire "standard"
list HERE)
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