Course Overview
This 3 day course introduces participants to treasury and the functions that treasury performs. It introduces the various instruments that are dealt within a bank’s treasury and the motives for dealing in those instruments. The course then highlights the different risks that treasury is exposed to. These risks are then linked to the various instruments in terms of how each instrument leads to a particular risk arising.
Participants will gain a comprehensive understanding of how the risks are measured with the various metrics. They will also be taught the methods for hedging against the risks in order to minimize them or eliminate them. The course gives insight into the risk structures within banking organisations and how these structures interact with each other and with treasury to perform their roles effectively.
The course aims for high impact in terms of understanding treasury risk management within the 3 day duration. Practical examples will be used throughout the course to enhance understanding. By the end participants will have a solid understanding of treasury risk management techniques.
Target Audience
- Risk officers, managers and analysts
- Corporate Treasurers
- Fund and Asset Managers
- Auditors and Bank Regulators
- Legal and compliance staff
- Group Treasurers
- Chief Risk Officers
- Accounting and Finance Managers
- Liquidity Managers
Learning Outcomes
By the end of the course, participant will be able to:
- Understand treasury risk management
- Apply treasury risk matrices and understand their significance
- Understand the distinction between banking book and trading book
- Identify the different treasury instruments and the function each instrument performs
- Define the various risk classifications
- Identify the risk each instrument gives rise to.
- Measure and manage risks using different metrics
- Describe and Analyse how each risk is measured and the metrics used within a bank
- Evaluate and Recommend actions to take to reduce treasury risks
Content Covered
The following content will be covered in the course:
Treasury & Its Functions
Introduction to treasury risk management
Treasury and its functions
Banking book vs Trading book
Rates instruments (loans and deposits)
Forex instruments (Spot, Forwards, Swaps)
Treasury Risks & Their Measurement
Interest, Liquidity and Funding risk
Currency risk, Market risk
Credit risk, Operational risk, capital risk
Risk measures
Hedging Treasury Risk and Risk Policy
Hedging and hedging strategies
Risk structures
Risk policy formulation
Assessments Methods
A variety of assessment tools will be used throughout the course to gauge the level of understanding of the participants.
Quizzes
After some of the topics have been covered, there will be mini quizzes that will be handed out and students have to complete them based on the material they just covered.
Group Discussions
After some of the topics, group discussion activities will be initiated and the aim of these group discussions is for the participants to share their understanding of concepts covered and by sharing, they display their understanding of the content
Scenario Analysis
Scenario analysis will also be used as an assessment tool. Participants will be given a particular scenario pertaining to what has just been covered and then asked how they would navigate through the scenario. The answers they give would indicate how well they understood the material.
Final Written Test
At the end of the course there will be a final Multiple-choice Questions (MCQs) test. The final written test takes all the content learned throughout the course and tests the participants’ knowledge all at once. Participants should obtain a minimum of 50% to obtain the “Certificate of Attendance”