Managing Catastrophic Risks

Financial professionals have long been focused on credit and market risk. Yet recent tragic events such as hurricanes in the US and terrorist attacks globally have begun to focus executives and risk managers on the management of catastrophic risks. This course explores the identification, measurement, control, and monitoring of catastrophic risks at financial institutions. The intertwined nature of catastrophic risks’ impact on credit, market, and operational risk is explored. The focus is also on insurance, data collection and backup, and other key factors that mitigate business disruptions. Additionally the course will concentrate on the role of regulators such as the BIS, central banks, and public/private partnerships working on mitigating the impact of catastrophic risks. Case studies and articles will be about the impact of catastrophic risks on financial institutions but will also look at other sectors which could provide useful lessons.

12-NOV-2008 -- 13-NOV-2008New YorkUSD$2375
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Wed Thu Level: Basic
CPE Credits: 14

Risk managers, operational risk personnel, compliance and legal personnel.
No advance preparation required.
Students will be able to:
  • Identify components of operational risk
  • Contrast operational and catastrophic risks
Basic knowledge of risk management, credit risk, market risk, and operational risk.
  • Derivatives Suite: Strategies, Trading & Valuation
  • Value At Risk
  • Risk Management Suite
    • Day 1 - Operational and Catastrophic Risks

    Identifying Operational Risk

    • Components of operational risk
    • Neglect of operational risk in exchange for credit and market risks

    Catastrophic Risks

    • Accidents - Cost cutting, BP refinery case
    • Terrorism
    • Natural Disasters

    Regulatory Authorities and Catastrophic Risks

    • Sarbanes-Oxley
    • Basel II

    Data Collection and Back-up

    Day 2 - Managing, Measuring, Controlling and Monitoring Catastrophic Risks

    Managing Catastrophic Risks

    • Deposit Trust and Clearing Corporation
    • Emerging split business model

    Measuring Catastrophic Risks

    • Models to measure risk

    Controlling Catastrophic Risks

    • Insurance
    • Public and private partnerships
    • Catastrophy bonds (CAT) and Extreme Mortality Catastrophy Bonds (EMCB)

    Monitoring Catastrophic Risks

    • Reports necessary to monitor risk

    Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.