Financial Risk Management and Analytics Certification Course

Why Select this Training Course?

In every financial institution or organization with significant financial assets, there is a need to have strong and effective risk management strategies. A risk management strategy helps the institution overcome common financial risks in day-to-day transactions.

What is financial risk analytics?

Financial Risk Analytics involves the application of innovative products and solutions in financial institutions to measure the risks posed at the institution and manage different forms of credit risks, market risks, and valuation adjustments. Using technology in the financial sector creates better and faster results in identifying risks and deploying effective management strategies.

How to effectively carry out financial risk management?

There are different forms of risks present in the financial sector. The type of risk present will determine the management strategy to mitigate the risk. If not effectively managed or mitigated, it can have significant negative consequences. In addition to this, there is a need for an institution to have a holistic risk management strategy that cuts across all sectors, including the financial industry.

The Financial Risk Management and Analytics Certification Course by Rcademy provides adequate training to professionals and personnel who work in the financial sector and require advanced risk management knowledge to handle the risks present. This course delves deeply into the methodologies underpinning risk identification, assessment, quantification, and accounting problems to provide learners with the tools they need to effectively manage financial risks in their organizations.

Who Should Attend?

The Financial Risk Management and Analytics Certification Course by Rcademy is highly relevant to many professionals whose duties involve financial assets and management. The course is most applicable to the following set of professionals.

• Finance managers, controllers, and accountants: responsible for managing the entire financial department and records of the organization
• Risk managers: responsible for identifying potential risks and also creating effective risk management strategies for implementation
• Senior managers: involved in directing the operations of units and departments and overseeing related financial matters
• Data analysts: involved in predicting models and risk impact through the use of available data
• Sales and marketing professionals: responsible for the marketing and sales of the organization’s goods and services
• Stakeholders: including investors who have influence and interest in the prudent management of the organization’s financial resources
• Board of directors: overseeing the affairs of the organization, including the integration of the operations to the overall objective
• Professionals: interested in learning or advancing their knowledge about financial risk management

What are the Course Objectives?

The Rcademy course on Financial Risk Management and Analytics aims to help the participants achieve the following objectives at the end of the course:

• Evaluate the critical nature of risk management in a rapidly changing global and local financial context
• Determine the primary financial risks that their organization faces and the likely impacts
• Evaluate the various risk management approaches, tools, and policies for risk management
• Create and rationalize risk management techniques that are beneficial to the financial operations of the organizations
• Manage cash, liquidity, and working capital to minimize financial costs and maximize returns
• Recommend acceptable short- and long-term financing methods that are devoid or carry low risks
• Assess potential capital investments that the organization wants to carry out
• Make hedging and Risk Management recommendations that are effective and easy to implement
• Recognize the use and significance of financial statements for analytical purposes
• Learn how to use financial analysis tools and approaches that aid in decision making
• Be able to use discounted cash flow (DCF) analysis to predict risk present in cash flow
• Effective capital investment project analysis utilizing a variety of methodologies
• Incorporate corporate investors and shareholder interest in the organization’s work plan

How will this Course be Presented?

Rcademy prioritizes using highly sophisticated and effective learning methodologies applicable to teaching professionals. The course uses many practical forms of education, including case scenarios, role-playing, and other interactive audio-visual teaching aids. The course contents are delivered by experts with years of experience managing financial risks and creating predictive analytical models.

The course is continuously improved with participants’ feedback and optimized to meet the learning objectives. Each module taught in this course is carefully curated to ensure learners’ smooth transition of knowledge into skills.

What are the Topics Covered in this Course?

Module 1: Introduction to Financial Risk Management and Analytics

• Overview of Financial Risk Management
  – Definition of financial risk
• Types of risk
  – Business risk
  – Non-business risk
  – Financial risk
• Steps of financial identification
• Attitudes toward financial risk
• Overview of financial analytics
  – Models of financial analytics
  – Quantitative analytics

Module 2: Risk Management in the Financial Institution

• Introduction
  – The need to manage risk
• Types of financial risks
  – Market risk
  – Credit risk
  – Liquidity risk
  – Operational risk
  – Legal risk
• Pervasiveness of risk
• Cost associated risks
• Taxes
• Business performance
• Financial risk and financial distress
  – Cost of risk management

Module 3: Interest Rate Risk

• Overview of rate risk
• Structure of interest rates
  – Yield curve behavior
• Analysis of the yield curve
• Money markets
  – Market efficiencies
  – Market liquidity
• Term instruments

Module 4: Currency Risk

• Overview of currency risk
  – Foreign exchange rate risk
  – Foreign exchange exposure
• Equity and commodity price risk
• Equity market risk
• Commodity price risk

Module 5: Asset Prices Behaviour

• Introduction to asset prices
• Process of generating financial assets
• Price generating process
• Financial volatility
  – Understanding volatility

Module 6: Risk Assessment

• Introduction to risk assessment
  – Controlling risk
• A top-down approach to risk assessment
• Building block approach
• Reporting and controlling risks

Module 7: Quantifying Financial Risks

• Statistical analysis of financial risk
• Significance of normal distribution
• Understanding risk measures
• Relationship between assets
  – Measurement of risk
• Portfolio estimation
  – Expected return and risk
  – The estimated value at risk

Module 8: Financial Method for Measuring Risk

• Introduction to risk measurement approach
  – Present value approach
• Spot discount rates
  – Calculating specific maturities
• Term-structure approach to risk measurement

Module 9: Qualitative Approaches to Risk Assessment

• Qualitative forecasts
• Qualitative forecasting methods
• Types of forecasts
• Assessing qualitative accuracy

Module 10: Financial Risk Analytics 

• Overview of Financial Risk Analytics
• Credit risk basics
• Credit risk modeling
• Market risk optimization
• Credit risk modeling
• Credit risk loss distributions