Financial Risk, Root Cause Analysis and Problem Solving Training Course

Why Select this Training Course?

Risks are inescapable in any business. If left unattended to and unresolved by tackling them at their very roots, they affect organizational performance – a summation of unflattering individual performances caused by these same risks. Hence, it is essential to be informed about risks, appropriate management approaches, and tools to address them and evade reoccurrences.

What does financial risk mean?

Financial risk arises from any loss or instability in the financial market that negatively affects a business’s ability to manage its loans and fulfill other financial obligations, resulting in financial loss. Financial risks can be divided into four broad categories; credit risk, which is associated with oversized debt from loans and credit cards; economic risk from micro and macroeconomic factors when doing business in another country; a specific risk that is faced by selected few companies on issues relating to capital and financial transactions, and operational risk that can arise from the business’s internal operations.

Why is the root cause analysis critical?

Root Cause Analysis is a problem-solving approach employed to tackle the cruxes of problems encountered in a business or firm and proffering solutions to them to eliminate them and prevent reoccurrence. Root Cause Analysis is a critical tool in risk management. It identifies possible risks, analyses them, proffers solutions to them, and trims down potential losses in the business. Therefore, it is a systematic process that comes in handy in addressing financial risks that can impede smooth operations in a company.

The Financial Risk, Root Cause Analysis and Problem Solving Training Course by Rcademy will teach learners how to do a root cause analysis, a method for identifying and examining the underlying causes of an issue to decide the best course of action for resolving or avoiding it in the future. This course emphasises how to put the principles of financial risk management into practice in real-world contexts. It will examine the many threats financial managers confront and the resources at their disposal to counter them.

Who Should Attend?

The Financial Risk, Root Cause Analysis and Problem Solving Training Course by Rcademy course matches business and other professionals in any managerial role looking to add risk and business problem identification and problem-solving to their skill toolbox. The following personnel can enroll for the course:

• Company presidents and leadership teams: tasked with management, administration, and the achievement of goals in a business
• Risk managers: responsible for managing the risks to an organization, its reputation, employees, customers, assets, and interests of investors and shareholders
• Financial managers and operators: tasked with the responsibility of managing financial risks
• Project managers: who identify, analyze, and respond to risks that may arise over the life cycle of their projects
• Quality management and assurance professionals: responsible for an organization meeting the compliance standards and working towards improvement in efficiency and efficacy of strategies
• Product managers: responsible for assessing and calling our risks in the several stages of a product lifecycle
• Designers and engineers: who need to consider risks in their projects
• Professionals: responsible for dealing with risks and are responsible for risk assessment procedures
• Students: interested in building any of the careers stated above

What are the Course Objectives?

The Financial Risk, Root Cause Analysis and Problem Solving Training Course by Rcademy aim to help participants achieve the following objectives:

• Develop the abilities necessary to recognize, comprehend, and manage diverse types of business and financial risk
• Identify the main factors to determine the actual root causes of problems
• Employ Root Cause Analysis and implement practical resolutions to business problems
• Locate, collect, and manage essential data for problem-solving
• Apply diverse problem-solving tools and approaches, and put the strategic problem-solving process to use
• Ensure a thorough risk management culture in the origination that contributes to the elimination of the recurrence of business problems

How will this Course be Presented?

This course will involve methodologies that will make it a collaborative training program. This Rcademy course on Financial Risk and Root Cause Analysis is curated to add to the participant’s wealth of skills and knowledge; thereby, constant and active learning of participants is ensured by a thorough course delivery. Detailed course delivery is guaranteed as this course is taught by professionals with years of practice and experience in the field. In addition, exhaustive research is carried out on the subject matter to classify this course into modules. The curriculum is also revised regularly to keep up with the best practices in risk management.

This course consists of theory and practical learning by providing lecture notes, slides on the concept, case studies, and real-life scenarios. In addition, presentations, quizzes, and constant feedback on lessons taught are set up and expected to be adopted by the participants to ensure satisfaction with the course’s aim.

What are the Topics Covered in this Course?

Module 1: Financial Risks

• Definition of Risk
• Meaning of Financial Risk
• Types of Financial Risk
  – Credit Risk
  – Economic Risk
  – Specific Risk
  – Operational Risk

Module 2: Measurement of Financial Risks

• Debt-to-capital ratio
• Debt-to-Equity (D/E) ratio
• Interest coverage ratio
• Degree of Combined Leverage (DCL)
• Value at Risk (VaR)
• Conditional Value at Risk (CVaR)

Module 3: Risk Management

• Meaning of risk management
• Definition of risk management strategy
• Developing a risk management strategy
• Implementing a risk management strategy

Module 4: Risk Management Techniques

• Overview of risk management techniques
• The three risk management techniques
  – Assess the Risk
  – Manage the Risk
  – Monitor the Risk

Module 5: Root Cause Analysis

• Definition of Root Cause Analysis
• Types of Root Cause Analysis
• Benefits of Root Cause Analysis
• Applying Root Cause Analysis
• Determining the Root Cause
• Examples of Root Cause Analysis Tools and Techniques

Module 6: The 5 Whys Analysis

• The 5 Whys Analysis
  – Definition
• Features of the 5 Whys
• Benefits of the 5 Whys
  – Application of Root Cause Analysis
• Steps to Performing the 5 Whys
• Case Study of an Application of the 5 Why Analysis

Module 7: Fishbone Diagram

• Definition of the Fishbone Diagram
• Features of the Fishbone Diagram
• Advantages of the Fishbone Diagram
• Steps in Creating a Fishbone Diagram
• Case study of an application of the Fishbone Diagram

Module 8: Pareto Chart

• Overview and Description of a Pareto Chart
• The principle guiding its technique for Root Cause Analysis
• Features of a Pareto Chart
• The benefit of using a Pareto Chart as a Root Cause Analysis technique
• How to build a Pareto Chart
• Case study of an application of the Pareto Chart

Module 9: The Plan-Do-Check-Act (PDCA) Cycle

• What is the PDCA Cycle?
• Characteristics of the PDCA Cycle
• Advantages of using the PDCA Cycle as a Root Cause Analysis tool
• How the PDCA Cycle is performed
• Case study

Module 10: Failure Mode and Effective Analysis (FMEA)

• What is an FMEA, and what does it document?
• Features of the FMEA
• The benefit of the FMEA as a Root Cause Analysis tool
• Procedures to perform the FMEA
• Case study