Program Overview
This program offers professionals a comprehensive introduction to financial risk modeling and analytics. Participants will learn the basics of credit, market, and operational risk models, understand how to interpret analytics outputs, and explore real-world case studies of risk mitigation strategies. Through interactive exercises and situational problem-solving, the program equips participants with the knowledge and tools to address financial risks effectively and make data-driven decisions in their professional roles.
Features
- Understand the foundational concepts of credit, market, and operational risk models.
- Interpret analytics outputs to make informed business decisions.
- Analyze real-life risk mitigation strategies through case studies.
- Apply practical tools and techniques to address common financial risk challenges.
Target audiences
- Risk analysts
- Financial analysts
- Credit analysts
- Investment professionals
- Compliance officers
Curriculum
- 4 Sections
- 20 Lessons
- 1 Day
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- Fundamentals of Financial Risk Modelling6
- 1.1Overview of Risk Types: Credit Risk, Market Risk, Operational Risk
- 1.2Introduction to Risk Models: Key Components: Inputs, Assumptions, and Outputs
- 1.3Keywords: Value-at-Risk (VaR), Expected Shortfall, Stress Testing, Sensitivity Analysis
- 1.4Interactive Exercise: Building a simple risk model using pre-defined datasets (Excel-based or software-enabled).
- 1.5Overview of Statistical and Predictive Modeling Techniques
- 1.6Role of Probability Distributions and Correlation Analysis
- Functional Interpretation of Analytics Outputs6
- 2.1Decoding Key Metrics: Risk-Weighted Assets (RWA), Loss Given Default (LGD), and Exposure at Default (EAD).
- 2.2Heatmaps and Sensitivity Graphs: Identifying Risk Patterns.
- 2.3Red Flags in Analytics: Spotting Inconsistencies.
- 2.4Linking Outputs to Business Decision-Making.
- 2.5Aligning Risk Analytics with Organizational Goals.
- 2.6Situational Awareness Activity: Analyze pre-shared analytics outputs and identify potential areas of concern or improvement.
- Case Studies in Risk Mitigation Strategies5
- 3.1Case 1: Credit Risk Management in a Banking Institution.
- 3.2Case 2: Market Risk Response During Volatile Economic Conditions.
- 3.3Case 3: Operational Risk Controls in a High-Risk Environment.
- 3.4Key Concepts: Hedging, Risk Appetite, Diversification, Scenario Analysis, and Contingency Planning.
- 3.5Interactive Simulation: Simulate a risk management scenario and propose mitigation strategies based on given data and context.
- Integration and Wrap-Up3
Instructor
