Course description
This fascinating and interactive two-day workshop will give delegates a thorough understanding of best practice controls to be applied in commodity trading activities. It also offers in-depth coverage of systems requirements, credit risk management best practices, risk and performance measurement, and a strong focus on capital adequacy issues. Subject areas covered include recent developments in regulatory and legal compliance, and ethics.
Through interactive group case studies, delegates will analyze examples of control inadequacies leading to:
- Expensive trading mistakes
- Liquidity crises
- Market manipulation
- Misuse of leverage
Includes Online Pre-study Module
This course is accompanied by a preparatory course available online. Delegates will receive a web voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.
Do you work at this organisation and want to update this page?
Is there out-of-date information about your organisation or courses published here? Fill out this form to get in touch with us.
Content
- Key types of risk (faced by management and the trading room)
- Details of recent spectacular failures
- What happened and why
- Same company or different planets?
- Front Office
- Mid-Office
- Back Office
- The overall controls process
- Trading controls "Best Practices" guidelines
- Executive management
- Trading management
- Traders
- Trading authorities - limits and layers
- Prioritizing more deals vs. better controls
- Trading room controls
- Capital Adequacy
- Credit risk management and controls
- Calculating credit exposure
- Portfolio credit risk measurement
- Forward-looking credit models
- Determining credit thresholds
- Key issues with credit and collateral annexes
- Market price risk management and controls
- Foundations for risk measures
- Risk modeling issues
- Price volatility issues
- Application and strengths/weaknesses of value-at-risk
- Other uses of value-at-risk
- Additional risks to control: operational, regulatory, others
- Stress Testing
- Types of stress testing
- Stress testing versus “at risk” measures
- Determining adequate capital
- Key measures of capital adequacy
- Cash-flow-at-risk
- Impact of margin (collateral) on working capital
- Capital adequacy framework
- Risk adjusted performance measurement
- Determining risk tolerance
- Credit risk management and controls
- Regulatory and legal compliance
- Regulation of trading and market manipulation
- Overview of regulatory organizations
- Market manipulation defined
- Dodd-Frank Act
- Overview of the new regulatory regime
- Swap Dealers and Major Swap Participants
- End user exemptions
- Clearing, margining, reporting and credit risk issues
- Implications of Dodd-Frank
- Regulation of trading and market manipulation
- Ethics
- Definitions
- Shades of gray
- Organizational perceptions
- Ethics in energy trading