Debt Restructuring and Risk Management Course

This short course will focus on variety of risks faced by financial managers and the tools available for managing these risks.
Particularly, we shall focus on credit risk, interest rate and liquidity risks, market risk, foreign exchange risk, and country risk. We shall learn about the tools and techniques available for managing these risks such as future contracts, option contracts, swaps, value-at-risk (VaR) and other standard risk-hedging techniques, and methods of measuring volatility.
The course will also include understanding insurance as a risk financing technique, insurance plan design, forecasting accidental losses and risk financing needs, self-insurance plans, retrospective rating plans, reinsurance and its importance to risk financing plan captive insurance plans, finite and integrated risk insurance plans, capital market risk financing plans, noninsurance contractual transfer of risk, and purchasing insurance and other risk financing services.
Who Should Attend?
• Management Accountants
• Chief risk officers
• Executives concerned about risk
• Risk managers
• Risk management consultants
• Client executives in brokerage firms
• Agents and brokers
• Commercial Lines Underwriting Professionals
• Business Accountants
• Chief Finance Officers
• Finance Directors
• Directors
• Finance Managers
• Financial Controllers
• Commercial Managers
• Financial Analysts
• Business Analysts
• Auditors
• Senior Managers
Course Objectives
• Learn the fundamentals of financial risk management.
• How to apply risk financing techniques to lower the cost of risk
• Decision rules for choosing risk financing techniques
• Using loss severity distributions and trending to identify risk funding targets
• Impact and use of captive, reinsurance, claims administration, and cost allocation when retaining risk.
• Understand and explain the nature and role of financial statements and their interpretation
• How to apply risk financing techniques to lower the cost of risk
• Decision rules for choosing risk financing techniques
• Using loss severity distributions and trending to identify risk funding targets
• Impact and use of captive, reinsurance, claims administration, and cost allocation when retaining risk
• Delegates will also be provided with knowledge that can be shared amongst their own staff and colleagues, and to other departments within their organizations. The awareness and understanding of the various financial risk management techniques available will enable delegates to communicate better with financial professionals, within and external to their organizations, and to become more effective managers.
Course outcomes
Participants will leave this training seminar with benefits that are direct, immediate and measurable.
Learn how to:
• Prepare organizations to meet rating agency requirements by using a practical toolkit that helps initiate and implement a strategic Enterprise risk management program.
• Empower organizations to make better-informed business decisions and optimize its risk management by aligning Enterprise risk management with strategic goals.
• Position your Enterprise risk management program for success by learning how to coach risk owners
regarding implementation responsibility and process.
• Communicate and consult more effectively with critical stakeholders by sharing internationally recognized
Enterprise Risk Management guidelines.
After completing this course you will be conversant with:
Financial Risk Management
• Understand the financial risk management process
• How to identify key factors that affect interest rates, exchange rates, and commodity prices
• The impact of history on financial markets
Identifying Major Financial Risks
• Evaluate the various financial risks that affect most organizations
• How key market risks arise, such as interest rate risk, foreign exchange risk, and commodity price risk
• The impact of related risks such as credit risk, operational risk, and systemic risk.
Interest Rate Risk
• Identify opportunities to reduce interest rate exposure
• Evaluate ways to manage interest rate risk with forward rate agreements, futures, and swaps
• Assess the use of interest rate options
Foreign Exchange Risk
• Assess ways to reduce foreign exchange exposure through rearranging business processes
• Compare foreign exchange hedging strategies
• Evaluate the risks associated with specific derivatives products and strategies
Liquidity Risk
• Identify the major sources of liquidity risk
• Identify common methods for managing liquidity risk
Credit Risk
• Identify the major sources of credit and counterparty risk
• Identify common methods for managing credit risk
• Understand the basic types of credit derivative
Commodity Risk
• Aspects of commodity-related risks
• Evaluate basic forward and futures strategies for managing commodity risk
• Identify additional strategies for managing commodity price risk
Risk Management Framework: Policy and Hedging
• Comment on the importance of financial risk management policy
• Develop an organizational profile to support risk management policy
• Evaluate opportunities to develop or refine a risk management policy
Measuring Risk
• Differentiate between measures of exposure and measures of risk
• Consider the strengths and weaknesses of risk measurement methodologies
• Identify alternative strategies for estimating risk
Global Initiatives in Financial Risk Management
• Understand the challenges that exist in financial risk management
• Identify initiatives for reducing risk in key areas such as settlements, trading, and payments
• Appreciate the significance of accounting and regulatory initiatives
• Evaluate how changes in capital adequacy can reduce systemic risk
Financial cost
Analysis of financial statements
Importance of analyzing statements
Ratio analysis of a Balance Sheet
Analysis of Income Statements
Profitability from Income Statements
Comparative and percentage analyses
Inventory and depreciation
Basics of inventory and depreciation
Inventory costing methods
Depreciation method
Application of accounting methods
Calculate inventory
Calculate depreciation
Way forward After the Training
Participants will identify and evaluate exposures to both accidental and business risk, analyze risk control and financing techniques, select the most effective risk management alternative through the help of facilitators that stipulates application of skills acquired in financial risk management. ASPM will monitor implementation progress after the training.
Training Evaluation:
Participants will undertake a simple exercise before the training and after the training in-order to monitor knowledge gained through the training.