Financial Risk Management and Derivatives Training Course

The Financial Risk Management and Derivatives Training Course offered by Geneve Institute of Business Management is designed to provide finance professionals with a structured and in-depth understanding of financial risks and the instruments used to manage them. In an environment marked by market volatility, regulatory pressure, and global financial interdependence, effective risk management has become a core responsibility for financial institutions and corporate finance functions alike.

This course examines the sources of financial risk, the principles governing risk measurement, and the role of derivative instruments in controlling exposure. Participants will develop a clear understanding of how market risk, credit risk, liquidity risk, and operational risk affect financial performance and decision-making. The program also explains how derivatives such as forwards, futures, options, and swaps are used to manage uncertainty and stabilize financial outcomes.

Through a structured five-day framework, the course emphasizes clarity, accuracy, and regulatory awareness, enabling participants to strengthen their analytical capabilities and support informed financial decisions within their organizations.

Target Group

• Finance managers and treasury professionals responsible for managing exposure to financial risks.

• Banking professionals engaged in credit analysis, market risk assessment, and asset-liability management.

• Investment and portfolio managers seeking a deeper understanding of risk control mechanisms.

• Risk management and compliance officers overseeing financial risk policies and regulatory adherence.

• Professionals aiming to enhance their technical understanding of derivatives and risk management frameworks.

Objectives

• Identify and evaluate different types of financial risk and their impact on organizational performance.

• Understand the structure, purpose, and valuation principles of major derivative instruments.

• Apply risk measurement techniques to assess market, credit, and liquidity exposures.

• Interpret financial risk reports and support informed strategic and operational decisions.

• Strengthen governance and control processes related to financial risk management.

Course Outline

Foundations of Financial Risk Management

Types of Financial Risk

• Market risk and its sources in financial markets

• Credit risk and counterparty exposure

• Liquidity and operational risk considerations

Risk Management Frameworks

• Objectives and principles of financial risk management

• Risk appetite and risk tolerance concepts

• Roles and responsibilities in risk governance

Market Risk Measurement

Interest Rate and Currency Risk

• Sources of interest rate risk in financial instruments

• Foreign exchange exposure and its financial impact

• Sensitivity of cash flows and asset values to market movements

Risk Measurement Tools

• Value at Risk (VaR) concepts and limitations

• Stress testing and scenario analysis

• Risk limits and monitoring indicators

Introduction to Derivative Instruments

Forward and Futures Contracts

• Structure and characteristics of forward agreements

• Futures markets and standardized contracts

• Hedging objectives using forwards and futures

Options Fundamentals

• Call and put options and their payoff profiles

• Key option valuation factors

• Risk exposure management through options

Advanced Derivatives and Hedging Strategies

Swaps and Structured Instruments

• Interest rate swaps and currency swaps

• Cash flow transformation through swaps

• Common applications in corporate and banking contexts

Hedging Approaches

• Hedging versus speculation principles

• Managing risk using derivative combinations

• Measuring hedging effectiveness

Credit Risk and Regulatory Considerations

Credit Risk Management

• Credit exposure assessment techniques

• Credit risk mitigation tools and controls

• Monitoring and reporting credit risk

Regulatory and Reporting Environment

• Regulatory expectations for risk management

• Financial risk disclosure requirements

• Governance and internal control standards