Course description
When it comes to money, “risk management” refers to the steps taken to recognize dangers, evaluate them, and either live with them or lessen their impact on future financial choices. Return cannot be achieved without risk. Having a firm grasp of the various types of risk may help investors weigh the benefits, drawbacks, and costs of different investing strategies.
What is investment risk?
Investment risk is the uncertainty of an investment performing as calculated or assumed to act. This may have to do with several factors, such as a downturn in the economy or governmental policy. Such risks could also be associated with the over-saturation of the market where the investment is made. Therefore, it is essential to understand the proper way of managing risk to regain the capital invested and prevent a company from suffering a loss. There are different types of investment risks ranging from economic risks to market risks, asset-class risks, company risks, and industry risks.
Upcoming start dates
Suitability - Who should attend?
Who should attend?
The Investment and Financial Risk Management Training Couse by Rcademy is suitable for you if you fall into any of the categories listed below:
- Fund or portfolio manager
- Investor
- Banker
- Financial Analyst
- Financial trader
- Insurance official
- Stockbroker
- Economist
Outcome / Qualification etc.
The Investment and Financial Risk Management Training Couse by Rcademy is aimed at aiding its participants to achieve the following:
- Comprehend how important risk is in making investment decisions
- Understand the factors that financial institutions consider before making investments
- Comprehend the process of analyzing financial risks and applying investments
- Properly appreciate the process of financial risk management and the tools associated with it
- Understand the usage and importance of quantitative finance in the current financial markets
- Utilizing investment or financial risk management tools to prepare and examine hypotheses
- Become knowledgeable on the roles of spot trading or derivatives
- Understand the importance of hedging and assets trading
- Understand the application of business and academic skills to problems relating to or arising from investment and management of risks
- Appreciate the functions and importance of financial intermediaries
- Understand the operation and mechanisms used in investment markets
Training Course Content
Module 1: Introduction to Investment and Financial Risk Management
- General Introduction to Investment and Risk Management
- History of Investment and Risk Management
- Overview of Financial Risk Management
- Overview of the Financial Market
- Financial institutions – Commercial Banks – Mortgage Institutions – Insurance companies – Investment Banks
Module 2: Types of Financial Investments
- Mutual Funds
- Exchange-traded Funds (ETFs)
- Stocks
- Bonds
- Retirement Plans
- Annuities
- Options
- Hedge funds
- Foreign Exchange
- Importance of Investments
- Capital and its Roles in Investment
Module 3: Financial Risk Management
- Introduction and Definition of Financial Risk Management
- Types of Financial Risks – Asset-backed risk – Credit risk – Currency risk – Equity risk – Foreign Investment Risk – Inflation Risk – Interest rate risk – Liquidity risk – Market risk – Operational risk
- Management of liquidity and liability
Module 4: Process of Financial Risk Management
- Identification of risk
- Analysis of risk
- Control of risk
- Financing of risk
- Administration of risk
Module 5: Investment Banking and Portfolio Theory
- Diversification of portfolio or investment
- Portfolio Construction (optimal)
- Expected Utility Theory
- Model of Pricing Capital Asset
- Arbitrage Pricing Theory and its Application
- Active and Passive Investment Strategies
Module 6: Insurance in Management of Investment and Financial Risks
- Overview of insurance concerning Investments and Risk Management
- Types of Insurance – Property and general insurance – Health insurance – Group Insurance – Life Assurance
- Key Terminologies in Insurance
- Management of Investment and Financial Risks through Insurance.
Module 7: Risk Aggregation
- Meaning of Risk Aggregation
- Process of Risk Aggregation – Top-down Approach – Bottom-up Approach
- Context of the Process of Risk Aggregation – Regulatory – Non-regulatory
- Risk Metrics – Expected shortfall – Value-at-risk – Merits and demerits
- Approaches of Risk Aggregation
Module 8: Quantitative Risk Assessment
- Profit and Loss Distribution
- Forecast
- Historic Data
- Opinion of experts
- Risk Measures
- Principles of Risk Measures – Alpha – Beta – R-squared – Standard Deviation – Sharpe Ratio
- Comparison of various risk measures
- Limitations of risk measures.
Module 9: Hedging Risk
- Computation of hedge
- Effectiveness of Hedge and its Measurement
- Credit Derivative
- Futures Contract
- Swap Contract
- Commodity Futures
- An Examination of the Options Market
- Option Contracts
- Revenue Shock
- Separation Theorem
- Full-hedging theorem
Module 10: Risk Management and Financial Crises Case Studies
- The Great Depression (1929 -1939)
- The 2008 Financial Crisis
- Lessons from the financial crises: Analysis, Trends, and Patterns
- Improvement of risk measurement methods
- Researched changes in risk management
- Management of risk during financial crises
- Measurement of Risk-adjusted Performance
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Rcademy
Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...