Corporate Financial Risk Management
April 29, 2023 - May 23, 2023
Schedule via Zoom:
April 29, May 6, & 13, 2023
8:30 am - 4:30 pm
Early Eagle Rate:
April 17, 2023
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 Bautista has established her footing in the banking industry for 14 years wherein she held various posts such as Derivatives and Structured Products Chief Dealer in BDO Private Bank, Head of Corporate Sales in Security Bank Treasury, and Vice President handling Financial Markets Sales in ING Bank N.V. Manila Branch.
Currently, she is Director, Head of FInancial Institutions Sales in Standard Chartered Bank Philippines. Further to this, she has always been an advocate for continuous learning. She has been a resident resource speaker for Ateneo CCE handling topics such as Risk Management in Banking, Fundamentals of Derivatives, and Business of Treasury – Banking Series. She is also a resident review instructor in the CFA Level 1 review class, handling the fixed income and derivatives modules.
Ms. Bautista graduated with a Master's in Applied Mathematics major in Mathematical Finance from the Ateneo de Manila University. She is a Chartered Financial Analyst, a Certified Treasury Professional, and an SEC Certified Fixed Income Salesman.