Course Name

Managing Risks from FX and Interest Rate Exposures


September 23, 2019 - September 24, 2019

Monday - Tuesday 
8:30 am - 4:30 pm

Regular Rate:

Php 12,800

Early Eagle Rate:

Php 11,800

Valid Until:

September 09, 2019

Managing Risks from FX and Interest Rate Exposures


This program covers various exposures of a company in foreign exchange and interest rates, and how these risks are managed using foreign exchange and interest rate products. There will be intensive discussion on various common transactions of companies which lead to exposures in foreign exchange and interest rates, on how a risk exposure is  identified, measured, reported, and on how various FX and interest rate products are used and when appropriate to manage risks. Illustration of risks will be discussed from the viewpoint of both the corporate side (which will require FX or interest rate products to manage their risks) and  the banks side (that will provide such products to meet their clients' product needs.)

Who should attend

This program will be very useful to:

1. Finance and treasury officers of companies who wish to acquire a very good understanding of how exposures in foreign exchange and interest rates occur, monitored and controlled; and how to manage these risks using various products and techniques; 

2. Commercial banking, corporate banking and branch managers with client relationship responsibilities who wish to have a good understanding of the FX and interest rates risks their clients would have and of the FX and interest rate products that they can provide their clients to assist them in managing such risks, and being aware of the credit risk implications of each product; and 

3. Officers in banks involved in the processing and controlling of credit risks arising from FX and interest rate transactions with clients.

The program is designed for participants to acquire good understanding of:

  1. How exposures in foreign exchange and interest rates in a company are generated, identified, measured and reported; and how they could impact profitability and capital position of the company; 
  2. Various foreign exchange and interest rate products to be used for managing FX and Interest rate risks;
  3. The risks between counter parties when transacting FX or interest rates products; and
  4. Hedging FX or interest rate exposures.
  • Exposures and Risks in Foreign Exchange
    • Concept of foreign exchange exposure/risk
    • Generation, identification, reporting of foreign exchange exposures
    • Understanding foreign exchange transaction, foreign exchange rate quotations, and types of foreign exchange markets
    • Factors affecting foreign exchange rates
    • Foreign exchange forward and swap transactions
    • Foreign exchange options
  • Exposures and Risks in Interest Rates
    • Concept of interest rate exposure and risk
    • Understanding interest rate  transactions and markets
    •  Difference of interest rate and liquidity exposure
    • Interest rate risk in bonds
    • Repurchase agreements
    • Factors affecting interest rates
    • Interest rate swaps and cross currency swaps
  • Managing market risk from various interest rate exposures using interest rate products
    • Risk exposure to counterparty in FX and interest rate products transactions
    • Pre-settlement
    • At-settlement
  • Quantifying potential loss from counterparty default
  • Controlling counterparty risk
  • Case study - Impact on financial performance from FX and interest rate risk exposures.
  • Case studies - Needs of companies for foreign exchange and interest rates products to manage foreign exchange and interest rate  exposures - and banks meeting these needs.

Mr. Clemente Escaño

is an in-house trainer at large banks and has conducted training at official institutions such as the South East Asian Central Banks Training Centre (SEACEN), Bank  Indonesia, Institute of Banking and Finance, Singapore; financial institutions; and large corporations in Singapore, Manila, Jakarta, Kuala Lumpur. He is also a Consultant on financial market products, services, risk management, financial markets group organizational structure and policies and human resource development.

Prior to this, he worked at senior management levels in Citibank Manila, Hong Kong, Singapore, Bank of America, Union Bank of Switzerland, ABN AMRO Bank, Jakarta, Indonesia. 

He was the founding Director of Singapore International Monetary Exchange (SIMEX). He also served as Director, Institute of Banking and Finance, Singapore, and Chairman, Singapore Foreign Exchange Market Committee, to name a few. 

Mr. Escaño completed his Bachelor's degree in Economics from Xavier University and Master's degree in Industrial Economics from University of Asia and the Pacific. He is also a Certified Reiss Profile Master.

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