Corporate Financial Risk Management
April 25, 2020 - May 16, 2020
9:00 am - 5:00 pm
Early Eagle Rate:
April 11, 2020
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.
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.
Successful completion of this module enables the participants to:
- Recognize the importance of implementing corporate financial risk management techniques and strategies;
- Discuss the four basic derivatives building blocks: options, forwards, futures and swaps;
- Understand how derivative instruments/transactions are used to mitigate specific risks;
- Use quoting conventions for various short- and long-term securities and risk management products;
- Explore arbitrage and currency management opportunities;
- Apply innovative interest rate swap variations for specific needs; and
- Use the Black-Scholes option pricing model (OPM) to value call or put options as well as warrants.
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
Ms. Mari Toni S. Bautista
is currently Vice President under Financial Market Sales in ING Bank N.V. Manila Branch. She has established her career footing in banking and finance for more than nine years, holding various posts in asset management, fixed income and derivatives trading, and sales and structuring.
Prior to this, she held other posts, such as Head of Corporate Desk and Product Development Head of Security Bank Treasury, Derivatives and Structured Products Dealer of Banco de Oro (BDO) Private Bank Treasury, Foreign Currency Portfolio Officer of the Bank of the Philippine Islands Financial Markets Group, and Fixed Income Trader of the ING Bank N. V. Manila Branch.
In 2015, she was elected as part of the CFA Society of the Philippine’s Board of Trustees and held the post of Vice President handling Member Relations since then handling various projects such as employer info sessions and CFA Level I Review class.
Ms. Bautista earned her Bachelors and Masters degrees in Applied Mathematics, major in Mathematical Finance and minor in Economics from the Ateneo de Manila University, with Honorable Mention. She is a Chartered Financial Analyst and a Certified Treasury Professional.