Foreign Exchange Risk Management

Volatility in Foreign Exchange (“FX”) markets changes unpredictably and often causes significant corporate losses. The FX Risk Management course is focussed on explaining how corporations identify, quantify, manage and report FX risk and addresses the issues involved and how corporations can, through prudent hedging programs, help mitigate losses associated with movements in FX rates. 

It also provides an introduction to “value-at-risk” and how it can be used to quantify and manage FX risk in a corporate treasury. FX risk management policies and procedures and credit risk management are also addressed including examples.

Content:

• Day 1
• Cash management
• Corporate funding
• Liquidity management
• Market risk management
• Foreign exchange terminology and conventions
• Forward foreign exchange
• Foreign exchange swaps
• Foreign exchange trading game
• Day 2
• How corporations manage FX risk
• Financial mathematics
• Yield curves
• Interest rate swaps
• Interest rate risk management
• Policies, procedures and key controls
• Managing credit risk