Hedging Credit & Market Risks
Join our intensive 3-day Hedging Strategies & Risk Management online course to understand and manage complex and critical risk areas affecting organizations, including IFRS 9 / US GAAP requirements. Learn to develop effective risk management strategies using both derivative and non-derivative instruments to mitigate these risks.
Worldwide, companies lose billions of dollars annually due to market risks and the lack of effective hedging strategies. Market fluctuations in currency exchange rates, commodity prices, and interest rates significantly impact financial performance.
Without hedging, companies face severe financial losses, as adverse market movements can increase costs and reduce profit margins. Implementing hedging strategies using futures, options, and swaps is crucial for mitigating these risks and ensuring financial stability (McKinsey & Company). Risk management is a crucial aspect of financial decision-making. It’s essential to have a comprehensive understanding of various hedging strategies to protect your financial assets.
This training course, Hedging Credit & Market Risks (Currency, Interest, and Price), is an ideal opportunity to delve into the intricacies of market risk hedging strategies and the latest hedge accounting framework under IFRS 9. You will gain a hands-on understanding of the most frequently used hedging strategies. The course will address the challenging issues faced by finance and treasury professionals today.
With a focus on the new IFRS 9 framework, effective since 2018, this course is a must-have for corporates and finance professionals. Staying ahead of the curve and effectively managing financial risk is crucial.
Market Events and Risks
The COVID-19 pandemic has brought unprecedented challenges to businesses worldwide, causing severe economic disruptions and financial turmoil. Subsequent market events such as inflation, high oil and gas prices, and rising interest rates have compounded the situation, leading to significant market volatility.
These factors significantly impact businesses and their profitability. It’s crucial to adopt robust risk management strategies to protect against potential financial losses. The current economic climate requires a deep understanding of market risk hedging techniques. Businesses must stay ahead of the curve to ensure long-term success.
Importance of Training
With the challenges posed by the pandemic and economic uncertainties, it’s more important than ever for businesses to invest in the training and education of their finance and treasury professionals. This will help mitigate financial risk and maintain profitability.
Join this comprehensive training course and gain the knowledge and skills necessary to effectively manage financial risk. Protect your business against market volatility. Enrol now and take a step forward towards financial stability and success.
Key Features
- Understand currency, interest rate, price, credit, inflation, and ESG-linked bonds risk and effective hedging strategies.
- Reduced Income Statement Volatility
- Understanding Volatility Drivers and Hedge Ineffectiveness
- Aggregation Exposures
- Group and Net Positions
- Layering Approach
- Hedging Risk Components of Non-Financial Items
- Credit Risk and Credit Derivatives
- Climate Risks
- Rebalancing Hedge Ratios
- Successful Hedge Construction and Engineering
- Dynamic/Macro Hedging Strategies
- Effective Measurement of Hedge Effectiveness
- Qualitative and Quantitative Hedge Effectiveness
- Expertise in Fair Value, Cash Flow, and Net Investment Hedges
- Using Options, Swaps, Futures, Forwards, and Non-Derivatives for Hedging
- Commodity Hedging Strategy
- Cost-Effective Hedging Solutions
- Enhanced Hedge Accounting Processes and Controls
- Compliance with Accounting Standards
- Up-to-Date Hedge Accounting Requirements under IFRS 9, IPSAS, and US GAAP
Global Programs
Our program has been scheduled in multiple cities worldwide. For a comprehensive schedule and to find a session in your area, please explore the following links. If you are interested in organizing this program in your city, we encourage you to contact us for collaboration opportunities and more information.
Online | Zurich | London | Sydney | Paris | Johannesburg | Toronto | New York City | Singapore
For More Information
Please contact our customer service team for more information about this Training Course and to enroll. Our team is dedicated to providing you with excellent service and answering any questions you may have. We look forward to hearing from you and helping you take the next step in your professional development.
Instructor Bio
Our faculty members are highly qualified experts with a diverse range of specializations, including International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), UK GAAP, risk management strategies, valuations, mergers & acquisitions, corporate governance, ESG reporting, supply chain management, prudential regulations, and compliance matters such as Basel regulations, Solvency II, Anti-Money Laundering regulations, and more. Additionally, they have expertise in a variety of professional development programs, such as negotiation skills, presentation skills, data management, Python, Block-Chain, Digital Assets, and Becker CPA. This depth and breadth of knowledge ensure an engaging and effective learning experience for professionals and senior executives, helping to enhance knowledge retention.
Our faculty members are seasoned professionals with a wealth of experience in their respective fields. They bring a unique combination of practical knowledge and theoretical understanding to the classroom, making them well-equipped to address the challenges faced by professionals in today’s rapidly changing business environment. Their expertise and hands-on experience ensure that participants receive the most up-to-date and relevant information, which they can immediately apply to their own work. The interactive and engaging learning environment fostered by our expert instructors also helps participants retain information and improves their overall understanding of the subject matter. Whether you’re seeking to expand your knowledge, enhance your skills, or explore new career opportunities, our faculty members are equipped to provide you with the guidance and support you need to achieve your goals.
Instructor for this Programme
The course instructor will be one of our highly experienced faculty members.
Course Description
Introduction and Fundamental Concepts (Agenda can be tailored to address specific industry issues)
- Brief overview of the topic
- Business Risks and Risk Management
- Over view of Current Risk Environment
- Overview of IFRS 9
Understanding Risk Exposure and Risk Management Strategies
- Currency Risks
- Interest Risks
- Commodity Price Risks
- Components of a non-financial risk
- Inflation Risks
- Aggregate Exposure
- Group and Net Positions
- Credit Risk
- Tail Risks
- Wrong Way Risks
- Prepayment Options Risks
- ESG-linked Bonds & Equity
Derivatives and Embedded Derivatives
- FX Forwards
- Interest Rate Swaps
- Cross Currency Swaps
- Standard Vanilla Options
- Futures
Practical Challenges
- Bifurcation criteria for financial assets and liabilities
- Bifurcation criteria for non-financial instruments
- Examples and case studies
Foreign Exchange Risk
- Hedging a highly probable foreign sale transaction with a forward contract
- Hedging foreign sale with structured collar
Hedging Interest Rate Risk
- Hedging floating/fixed interest rate risks with interest rate swap
- Hedging Interest Rate and Currency Risks using CCIRS
- Hedging floating/fixed rate risk with a structured collar/zero
Commodity Price Risks
- Hedging commodity price fluctuations using futures contracts
- Strategies for managing commodity price exposure
Inflation Risks
- Inflation-linked bonds and derivatives
- Techniques for managing inflation risk
Credit Risk
- Hedging credit exposure with credit default swaps
- Managing counterparty risk in hedging transactions
ESG-linked Bonds
- Understanding ESG-linked bonds
- Hedging strategies for ESG-linked bonds
- Case studies on ESG-linked bond hedging
Hedge Qualifying Criteria and Documentation
- Risk management strategy and objectives
- Changes in internal risk management objectives
- Challenges and opportunities
- Case Studies
Advanced Hedging Techniques and Applications
Hedging Instruments
- Hedging instruments under IFRS 9
- General and Dynamic/Macro Hedging
- Enhanced scope of instruments
- Derivatives or a proportion of them
- Non-derivative or a portion of them
- How to benefit from changes
- Case studies and practical challenges
Types of Hedges
- Cash Flow Hedges
- Fair Value Hedges
- Net Investment Hedges
Accounting of Hedges
- Accounting of time value options
- Accounting for the forward element of forward contracts
- Impact on current period earnings
- Hedges of a group of items
- Designation of a component of a nominal amount
- Nil net position
- Examples with accounting entries
Conclusion and Review
- Summary of key concepts
- Q&A
The course agenda provided herein is the proprietary intellectual property of Shasat. It is intended solely for the use of participants enrolled in the respective course. Any reproduction, distribution, or unauthorized use of this course agenda, in whole or in part, without the explicit written consent of Shasat, is strictly prohibited and may result in legal action.
All rights reserved. ©2024, Shasat
Why you must attend?
As the adoption of IFRS accounting standards continues to gain momentum, with over 140 countries now implementing the framework, it is imperative for professionals to maintain a thorough understanding of the principles and practical applications of these standards. Whether you are new to using derivatives and hedging strategies or seeking to update your knowledge, it is essential to have a solid understanding of the requirements outlined in IFRS and also in US GAAP. In light of ongoing revisions and changing market conditions, it is crucial to stay informed and be prepared to adapt to new challenges in the field.
This comprehensive in-person/online program, led by a world-class faculty with extensive experience in IFRS implementation in both the European and emerging markets, is designed to equip you with the knowledge and skills necessary to meet these challenges head-on. The program offers a unique opportunity to gain a deep understanding of derivatives and hedging strategies through interactive, practical, and engaging instruction.
Designed for professionals of all levels, from beginners to experts, this instructor-led course provides a classroom environment for immersive learning. With small class sizes limited to a maximum of 10 participants, this program maximizes interaction and ensures that learning outcomes are met. Key features of the course include expert IFRS instructors with real-world experience, case studies and practical examples to illustrate key concepts and methodologies, access to IFRS templates, tools, models, and resources, and opportunities to explore new career paths in the IFRS/US GAAP domain.
Teaching methodology
The training program will employ a comprehensive and engaging approach to learning, designed to deliver maximum impact and retention. The methodology includes:
- A user-friendly slide deck that presents the concepts, methodologies, and principles in a clear and concise manner, making the material easily accessible to all attendees.
- Interactive sessions featuring real-life case studies to provide hands-on experience and bring the material to life.
- Explanations of concepts and methodologies through the use of examples and distinct scenarios, allow attendees to understand the material in context.
- Group exercises designed to illustrate accounting principles, encouraging collaboration and fostering a deeper understanding of the material.
- Discussions on GAAP differences, industry issues, and diversity in practices, provide attendees with a well-rounded understanding of the subject matter.
- Access to additional course material and handouts, ensuring attendees have a comprehensive reference resource to support their learning.
- An open and inclusive atmosphere that encourages attendees to ask questions and engage in discussion, ensuring a thorough understanding of the material.
The combination of these elements creates a dynamic and engaging learning experience that will support the professional development of all attendees.
Who should attend?
This training course is ideal for professionals across all industries, ranging from beginners to specialists. Individuals who will benefit from this program include chief financial officers, finance directors, finance executives, corporate finance function, accountants, financial reporting executives, treasurers, internal and external auditors, risk managers, bankers, tax directors and managers, regulators, academicians, accountancy students, analysts, fund managers and investors, strategic and financial planners, private equity and M&A specialists, to enhance your skills or advance your career, this course is designed to meet your needs and support your professional development.
Additionally, the course is not limited to professionals in the finance and accounting industries and is also suitable for anyone who is looking to enhance their knowledge and understanding of finance and financial management. If you are seeking to expand your knowledge base, this course can provide valuable insights and practical tools to help you achieve your goals. The content and approach of the course have been designed to be accessible to all, regardless of prior experience or background. Whether you are seeking to improve your personal financial management skills or seeking to build a strong foundation for your career, this course has something to offer to everyone who is looking to enhance their knowledge in the field of finance.
Feedback
Upon completion of the course, all delegates will receive an evaluation questionnaire aimed at gathering valuable feedback. This feedback is crucial to Shasat’s ongoing commitment to improving the quality of its learning solutions. By analyzing the trends in the responses, we are able to continuously enhance and refine our offerings to meet the evolving needs of our clients.
Venue & other info
Our training programs take place at the most prestigious professional training facilities in the city. Our venues have been meticulously chosen and expertly crafted to deliver an unparalleled and sophisticated learning experience. To further elevate your training journey, we will offer an array of refreshments including gourmet tea/coffee, delectable snacks, and a sumptuous lunch to sustain you throughout the course. Your comfort and satisfaction are of the utmost importance to us. One week before the program begins, you will receive comprehensive joining instructions that include the exact venue details.
Please note that accommodation arrangements are the responsibility of the attendee.
Workshop Delivery (Online Programs)
The workshop will be delivered via the WebEx platform. Upon registration, all participants will receive comprehensive joining instructions for the live workshop. This fully virtual event will encompass a live-streamed presentation, personalized networking opportunities, interactive Q&A sessions, engaging polls, and post-event consultation to address specific concerns and support your continued growth.
In-Person Workshop
Please be advised that for all in-person training programs, joining instructions will be sent via email to registered participants one week prior to the program’s commencement. These instructions will provide comprehensive information regarding the venue location, date, and time, as well as other important details such as parking arrangements, dress code, and any necessary equipment or materials. Kindly ensure that you carefully review the joining instructions and follow the guidelines provided to ensure a smooth and well-organized experience during the program.
Changes to the conference
Shasat reserves the right, at its sole discretion, to make modifications to the format, speakers, participants, content, venue location, and program, or any other aspect of the conference, at any time and for any reason, without incurring any liability. This policy has been implemented due to recent events such as the Covid-19 pandemic and other jurisdictional restrictions. These modifications may include, but are not limited to, changes necessitated by a Force Majeure Event
We are pleased to offer sponsorship opportunities for our training programs, providing companies with a unique platform to showcase their brand and services to a highly engaged and relevant audience. By becoming a sponsor, your organization will have the opportunity to build brand awareness, demonstrate thought leadership, and cultivate valuable relationships with industry professionals. Our programs offer a platform to reach a targeted audience and generate new business leads while showcasing your expertise. The benefits of sponsorship include increased brand exposure, opportunities to connect with key decision makers, and a platform to promote your products and services. We invite you to take advantage of this prime opportunity and partner with us to enhance your visibility and impact within the industry.”
We kindly request that you carefully review all of the terms and conditions outlined on our website. This information is critical in ensuring a clear understanding of our policies and procedures. Please follow the link provided to access this information.
Discover more about Shasat by exploring our “About Us” page, where you can gain insights into our company’s mission, values, and history, and learn how we can help you achieve your goals.
Payment
Enroll in our program with ease by choosing from our secure online payment options. You can make a payment through our website using PayPal or Stripe, or opt for a bank transfer, demand draft, or cheque payment. Our payment page will provide all necessary options during checkout. If you encounter any issues, our customer service team is here to assist you. Simply reach out to us with your selected course, and we’ll guide you through the payment process.
We kindly request that you take into consideration any associated bank fees when making your course fee payment. To ensure your participation in the program, payment must be received before the course date. Once we have received both payment and a completed registration form, we will confirm your enrollment in the program. Thank you for your understanding and cooperation.
Group discount
Our company is proud to offer a group discount of 15% for organizations or individuals who book a course for 5 or more participants. To take advantage of this offer and receive a personalized group discount code, please reach out to our customer service desk at info@shasat.com. Our team will be delighted to assist you with the booking process and answer any questions you may have. With this group discount, you can invest in the professional development of your team and drive success for your organization. Don’t hesitate to contact us today to learn more.
Upon successful completion of the training course, each participant will receive a certificate of completion that attests to the number of hours spent in training and serves as a valuable representation of their dedication to professional development. The certificate is not only a symbol of their achievement, but also serves as proof of continuous professional development (CPD) and demonstrates their commitment to staying current in their field. We believe that CPD is a crucial aspect of career advancement and personal growth, and are proud to provide our participants with this important document.
For further assistance, we invite you to contact our dedicated customer service team. Our experienced and knowledgeable representatives are available to answer any questions you may have and provide the support you need to make informed decisions. We are committed to ensuring that you have a positive experience and are here to help in any way we can. Please don’t hesitate to reach out to us at your convenience.
In-House Training
Enhance your team’s skills and drive success for your business with our custom In-house training program. Our tailored approach aligns with your specific business needs, offering a cost and time-efficient solution for upskilling your employees. This not only improves their productivity but also positions your company as a competitive force in the market. Transform your investment in employee development into tangible results by choosing our In-house training option. To discuss and learn more about our services, please don’t hesitate to contact our training desk. We’re ready to help you create a bespoke program that’s just right for you.
