Risk Management Using Derivatives - Online

It is essential for financial managers to identify risks accurately and to use the right control techniques. This course begins by introducing the different types of risk, and explains how to use the risk cycle to recognize these risks and control them. The course then moves on to the different types of derivative techniques that can be used to manage risk, including FX risk, short- and long-dated domestic interest rate risk, long-dated foreign interest rate risk and equity risk. In the final lesson, participants are presented with several case studies that apply what they've learned about using derivatives to manage risk.

Please note that this is a curriculum of individual course modules. You will need to pass each module exam in order to qualify for a certificate of completion.

This is an asynchronous eLearning program that can be accessed 24/7 from any internet enabled computer.

Available TodayOnlineUSD$375
Instructional Method:
Self-Study
Level: Basic

CPE CREDITS
7
Risk managers and assistants, trading assistants, finance professionals, auditors and controllers.
Students will be able to:
  • Identify the different categories of risk.
  • Recognize how risks arise.
  • Recognize the elements of the risk cycle
  • Identify the different types of risk (translation, transaction, contingent, and external risks)
  • Explain the Quantification, Policy, Implementation and Monitoring steps of the Risk Cycle
  • Describe the benefits of internal hedging
  • Recognize applications for forward foreign exchange contracts to manage FX risk
  • Identify the use of non-deliverable forward foreign exchange contracts in the management of FX risk
  • Recognize the use of currency options in the management of FX risk
  • Identify the use of forward interest rate agreements (FRA's) to manage risk.
  • Recognize exchange traded futures as they are used to manage risk.
  • Recognize management of risk using interest rate options.
  • Discuss the use of interest rate swaps in managing long-dated domestic interest rate risk.
  • Recognize the use of swaptions in managing long-dated domestic interest rate risk.
  • Recognize long-dated foreign interest rate risk exposure.
  • Identify how to use a currency swap to manage long-dated foreign interest rate risk.
  • Define equity risk and beta.
  • Explain the role of stock index futures in managing equity risk.
  • Apply derivative techniques to manage translation risk.
  • Identify elements of transaction risk and how best to manage it using derivatives.
  • Recognize strategies for managing contingent risk using derivatives.
Derivative Instruments or equivalent level of knowledge
"The training is well presented with audio and graphics."
"This course was clear and easy to understand!"
"Excellent course with well presented information."
  • Derivative Instruments - Online
  • Forwards & Futures - Online
  • Options - Online
  • Swaps - Online
  • Market Risk Basics - Online
    • Introduction to Risk Management
    Topics covered include:
    • Understanding risk management
    • How risks arise
    • Risk categories
    Duration: 1 hour

    Identifying Risks
    Topics covered include:
    • Understanding and implementing the risk
    • Types of risk
    • Defining and utilizing natural hedging
    Duration: 1 hour

    Managing Foreign Exchange Risk Using Derivatives
    Topics covered include:
    • Defining foreign exchange risk
    • Applying derivative risk management techniques
    Duration: 1 hour

    Managing Short-Dated Domestic Interest Rate Risk using Derivatives
    Topics covered include:
    • Defining short-dated domestic interest rate risk
    • Applying derivative risk management techniques
    Duration: 1 hour

    Managing Long-Dated Domestic Interest Rate Risk Using Derivatives
    Topics covered include:
    • Defining long-dated domestic interest rate risk
    • Applying derivative risk management techniques
    Duration: 1 hour

    Managing Long-Dated Foreign Interest Rate Risk Using Derivatives
    Topics covered include:
    • Defining long-dated foreign interest rate risk
    • Applying derivative risk management techniques
    Duration: 1 hour

    Managing Equity Risk Using Derivatives
    Topics covered include:
    • Defining equity risk
    • Applying derivative risk management techniques
    Duration: 1 hour

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