1.     INTRODUCTION

 This 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. Students attending this course are expected to have studied basic courses of investment and portfolio management and have good understanding of asset pricing models.

Besides, Enterprise Risk Management known as (ERM) has evolved considerably since the seventies. From simply ‘buying’ insurance, it has now grown in importance to become a prime function in many organizations as part of a bigger system known as Governance, Risk and Compliance (GRC) which starts with corporate governance and ends with compliance. ERM is the function of studying the risks that may hinder a corporation’s ability to achieve its goals and then deciding how to overcome those risks. Studies regarding risk management were done by different organizations, including ISO which issued ISO 31000 on risk management. This system, which is the one covered in this course, teaches the steps needed to control risk. It starts with the evaluation of the internal environment and the setting of objectives which are, mainly, a result of the tone at the top of the organization, the directives from corporate governance as well as the vision, mission and corporate strategies. Then, the

course goes through the steps management needs to consider in order to identify and assess risk and decide  on  proper  risk  responses  and  controls.  The  course ends with how to monitor, communicate and report risk. In addition, the course looks at risk in different organizational areas such as strategy, reporting, compliance, operations, financial and physical risk aswell as risk in different industries.

This course has been designed to help audit committee members increases awareness of Risk Management and governance issues to improve audit committee effectiveness. We would also focus on risk management best practices, and each delegate would be required to complete a meaningful self- assessment of your organization’s governance process.

2.     COURSE OBJECTIVE

At the end of the course delegates will have:

• An understanding of the regulatory and statutory background to the work of the audit committee and its role in delivering good governance
• A practical model for assessing the effectiveness of your committee and identifying how to put it to better use
• The chance to discuss your own experiences with peers and our experts, exchange insights and consider best practice

3.     TARGET COMPETENCIES

• Improving risk monitoring and control
• Analysing and assess risks
• Advising directors on risks

• Controlling risks
• Mitigating risks
• Reporting risks
• Understating of the board of directors’ structure
• Analyzing board committees
• Improving risk monitoring and control
• Assessing and analyzing risks
• Controlling risks
• Reporting risks
• Advising on the GRC system

4.     COURSE OUTLINE

1. FINANCIAL RISK MANAGEMENT

1. Introduction to Financial Risk Management Motivation for risk management

Why risk management?

Creating value with risk management

Measuring risk for a single asset and for a portfolio of assets

2. . Financial Engineerin g & Hedging Basics of derivatives

Forwards, pricing of forward contracts under assumptions of dividends, carrying costs, etc

Futures, settlement mechanism, clearing house concept Hedging with futures and forwards

Basic, and exotic options

Basics of option valuations, valuation options using Black-Scholes Model Duration hedging

3. Measuring volatility and Correlations Conditional and unconditional volatility

Weighted and unweighted conditional volatility EWMA and CARCH (1,1) approaches to volatility Estimating covariance

4. Market Risk

Value at Risk (VaR) measurement

Historical and Monte Carlo Simulation approaches Back-testing

Stress-testing

Capital charge for market risk under Basel rules

5. Credit Risk

Credit analysis models (expert system, credit scoring and rating models, artificial neural networks

Capital charge for credit risk under Basel rules

Calculating default probabilities with actuarial and market prices based methods Measuring loss given defaults with actuarial methods

Credit Derivatives

6. Operational Risk

B.        CORPORATE GOVERNANCE

1. Overview of governance, risk management and internal controls

• Definition of corporate governance

• The scope of corporate governance

• Essential corporate governance principles

• Code of conduct

• The board of directors

• The audit committee

• Other committees

2. Stakeholders in Corporate Governance (CG)

• Stakeholders

• Shareholders rights

• Directors’ duties and rights

• Internal auditors and external auditors

• Risk based decision making

• CG failure effects

• The efficient board

3. Functions of corporate governance

• Independence of the board

• Selection, remuneration and evaluation of the board

• Analyzing current company’s CG system

• Disclosure and transparency

4. Introduction to compliance

• Definition of compliance

• Importance of compliance

• Practical examples of compliance

• Risks of compliance

5. Risk Management areas

• Strategic

• Operations

• Reporting

• Financial

• Health and safety

2. Governance cycles and trends
3. Governance cycles and trends

4. Sarbanes-Oxley and SEC requirements

5. Current issues and events in your industry/sector

6. Changes in audit committee roles and responsibilities

C.    ENTERPRISE RISK MANAGEMENT AND CONTROL

1. Enterprise Risk Management

• Risk perception

• Why should we care about risk

• Internal environment changes

• External environment changes

2. Risk management process per COSO guidelines

• Internal environment

• Objectives setting

• Event identification

• Risk assessment

• Risk response

• Control activities

• Information and communication

• Risk monitoring

3. Implementing controls in business cycles

• Controls in purchase and payment cycle

• Controls in inventory and costing cycle

• Controls in HR and payroll cycle

• Controls in sales and collection cycle

• Controls in fixed assets life cycle

4. Enterprise risk management: emerging trends, practices, and benefits

5. Control models and frameworks: your organization’s control environment

6. The changing nature of internal auditing

7. Your organization’s risk profile and key business risk priorities

8. Audit Committee Practices and Resources

9. Financial reporting oversight practices

10. Audit committee charters and composition, working relationships with management and auditors, training and resources, and meetings
11. Opportunities to improve your committee’s effectiveness

12. Self-assessment of your committee

FOR MORE DETAILS AND COURSE OUTLINE PLEASE CONTACT:

PIERRE DUPLIS BRENNER

The Admission Director

AFRICA INSTITUTE FOR CAPACITY DEVELOPMENT (AICD)

HEAD OFFICE:

21 Detroit Plaza |Pretoria Road|Kempton Park|

Gauteng. SOUTH AFRICA

Telephone : +27 733797377

Whatsapp Number : +27 733797377

Email:info@aicdtraining.com

https://aicdtraining.com/

For more information https://aicdtraining.com/apply-online/