FX and Interest Rate Risk Seminar

The first part of the seminar gives an introduction to the interest rate and foreign exchange market. We cover the following:

• What affects foreign exchange rates?

• Currency spot

• Currency forwards

• Currency swaps

• Introduction to the interest rate market

• What affects the interest rate market?

• Interest rate swaps

• Financing and credit risk

• Investing surplus liquidity

After having gone the first part, you must understand which factors affect the prices. You should also understand the connection between spot and instalment rates, and that these are crucial for your business to be able to take advantage of the opportunities you can see.

The second section begins with a summary of the first section. We then do a thorough review of the various financial instruments that can be used to manage risk:

• Interest rate swap forwarding

• Interest rate and currency swaps

• Interest rate options

• Foreign Exchange (FX) options

• Flexible currency forwards

• Portfolio management - foreign exchange

• Portfolio management - interest rates

After completing parts I and II, you will have a good understanding of various advanced foreign exchange and money market instruments. You will also learn portfolio management of foreign exchange and interest rates.

In the third part, you will learn how to set up and implement a financial strategy for risk management:

• Key regulatory framework and goal setting for developing a financial strategy

• Identification of value drivers and risk exposure to the financial markets

• Review of qualitative and quantitative approaches to risk management

• Defining financial strategy and policy

• Implementation of defined strategy

• Evaluation and monitoring of the strategy

• The Cash Flow at Risk model

• Accounting treatment of financial instruments (IFRS)

In part three, we will also briefly review commodity risk in addition to interest rate and FX risk.