Fundamentals of Financial Risk Management

Workshop overview

The Fundamentals of Financial Risk Management delves into the essential aspects of managing financial risk within organisations and the broader financial system. Beginning with an overview of risk and uncertainty, it introduces participants to various types of financial risks including market, credit, liquidity, sovereign, and operational risks, along with statistical and probabilistic methods for measuring and analysing these risks. ​

The course explores the historical development and methodology of Value at Risk (VaR), its limitations, and the interdependence of different risk types. Further, it covers counterparty credit risk, techniques for managing credit risk, and the fundamentals of interest rate risk, highlighting the importance of Basel III in capital adequacy and liquidity risk management. ​

​Participants will learn about market risk within trading book activities, how market, liquidity, and systemic risks are intertwined, and the importance of monitoring Key Risk Indicators (KRIs). The course also addresses stress testing methods and the critical role of operational risk management, including methodologies for measuring and monitoring operational risks and creating an effective risk management culture. 

Effective risk management is not only key to satisfying the FCA and PRA but essential to running a successful business. The majority of business failures are not because firms took on too much risk, but rather they did not understand, mitigate and control risk. 

This workshop will cut through the risk management jargon and help you clearly understand your role in identifying, understanding, and overseeing risk in your firm. 

Learning objectives

• Distinguish between different types of financial risk, including market, credit, liquidity, sovereign, and operational risks, and understand the statistical and probabilistic tools used for risk measurement and analysis
• Recognise what the FCA/PRA expect when managing business risks 
• Explore how to define and monitor risk appetite 
• Discover what information you need to effectively oversee risk 
• Understand the expectations for resilience and recovery planning 
• Learn how to delegate effectively to third parties
• Develop a comprehensive approach to operational risk management, including identifying and quantifying operational risks, integrating operational risk management into organisational frameworks, and fostering a culture that aligns with effective risk management practices

Interested in taking any of our workshops in-house?

Whether you are seeking to upskill your team, enhance productivity or foster a culture of continuous learning, we can deliver customised training programmes designed to meet your specific needs. If you have an enquiry, you can complete the in-house form and our training team will be in touch with next steps.