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Corporate Financial Risk Management

Course Name Corporate Financial Risk Management
Advanced Module: Diploma Program in Corporate Finance
Schedule September 30, 2017 - October 14, 2017

Saturdays

9:00am - 5:00pm

Price: Php 19,500
Description

Every business is exposed to risk. Oftentimes, risk-averse individuals shun the very idea of going into business because of it. Managers tend to shirk risky but potentially beneficial new investments/projects for fear that if these fail, they might lose their jobs.
 
Risk is multidimensional, affecting almost every aspect of a business endeavor: financial, operational, environmental as well as regulatory, among others. Having the proper tools to deal with these risks can conserve resources and avert financial hardship.

This no-frills, no-nonsense module familiarizes the participants with the strategies and products used to manage a broad spectrum of corporate financial risks, from volatile interest and currency rates, unstable commodity prices to fickle government monetary policies. It first presents the basic contracts used to manage the risks, then proceeds to unveil an arsenal of risk management techniques and strategies, analyzing the benefits and limitations of each, and detailing their practical business applications. Through a series of exercises and examples, participants gain a useful experience structuring hedges and reducing their financial risk exposure.

Objectives

Successful completion of this module enables the participants to:

1.    Recognize the importance of implementing corporate
          financial risk management techniques and strategies;
2.    Discuss the four basic derivatives building blocks:
          options, forwards, futures and swaps;
3.    Understand how derivative instruments/transactions are used to
          mitigate specific risks;
4.    Use quoting conventions for various short- and long-term
           securities and risk management products;
5.    Explore arbitrage and currency management opportunities;
6.    Apply innovative interest rate swap variations for
           specific needs; and
7.    Use the Black-Scholes option pricing model (OPM) to value call or
           put options as well as warrants.

Who should attend

This module is highly recommended for corporate risk officers, business professionals and consultants, and other finance practitioners involved, one way or another, in implementing and/or providing practical and expert advice/guidance in the use of the latest financial risk management tools. Those familiar with or have adequate working knowledge of basic business mathematics and statistics will find this module most meaningful and beneficial.

Outline

The module, which employs lectures, interactive discussions, case studies and practical application exercises, covers the following areas:

  •     Financial risk management: an overview and introduction
  •     Taxonomy of risks
  •     Basic contracts and their markets
  •     Hedging instruments: types, descriptions, pricing, trading
  •     Structuring the hedge: issues, factors, mechanics
  •     Implementing the hedge: the decision, dealing and credit
  •     Legal and regulatory compliance issues
  •     Selected business studies and applications