Markets and Risk Management
This section approaches the aspects of markets and Risk in a unique bottom-up manner. While much literature exists on 'Markets' and ‘Risk Management’ in particular, this area will focus on Risk management purely from the standpoint of a global corporate, and use the approach that the author has taken while advising firms on how to manage their market-related risk.
- Introduction to Risk
- Different risk themes and the ones most pertinent to Treasury
- How markets can impact Financials and company performance
- Translational and Transactional Risk
- Project risk
- Counterparty Risk
- Cross-Border Risk
- Operational Risk
- Legal and Compliance Risk
- Various Markets and Risk aspects of each markets
- Foreign Exchange Markets
- Fixed Income & Money Markets
- Credit Markets
- Commodity Markets
- Equity Markets
- Domestic and International Markets
- Products: Forwards, Options, Swaps
- Interest Rate Differentials
- Yield Curve
- Forward Rates
- The Forward Curve and computing Discount Factors
- Constructing Swaps
- Constructing Vanilla Options
- Futures and Exchange trading
- Exotic Products
- Credit Liquidity and Operational Risks
- Credit Risk
- Cross-border risk
- Counterparty Risk
- Settlement risk
- Liquidity Risk
- Operational Risk
- Credit Risk
- Risk Management Process – 'IMAGE'
- Identifying the Risk
- Measuring the Risk
- Accounting for the Risk
- Governing the Risk
- Evaluating the Risk Process
- Combining the products to manage risk
- Using Products to manage Risk
- FX Risk
- Rate Risk
- Balance Sheet risk
- Other Risks – Commodity, Credit, etc
- Hedging strategies
- Devising a strategy
- Considerations and objectives
- Putting it into Practice
- Sample Strategies
- Operational Aspects: Documentation and Execution
- One-time documentation
- ISDA (International Swap Dealers Association) Documentation
- Transaction Documentation
- Controls
- Execution
- Booking
- Delivery
