Content

Currency and interest rate fluctuations can cause considerable earnings volatility for companies and banks alike. This has been proven to have a negative impact on the value of a company, in some cases even calling its continued existence into question.

In the course of the seminar, the process of market risk management is prepared in a structured manner. This involves identifying which positions are subject to risk and analyzing how the risks affect the company. Different quantification methods are presented and the advantages and disadvantages are discussed in detail.

All this information allows well-founded decisions on risk strategy to be made and subsequently implemented. The potential significance of these risks requires careful management. Not only on the basis of legal requirements, but also within the framework of sustainable corporate management.

Main topics

• Manifestations of risk - direct and indirect currency risk
• Risk analysis
• Quantification based on volatilities
• Approaches to risk strategy and building blocks of a risk policy
• Hedging instruments in practical use: forward contracts, options
• Principles of accounting for derivative instruments
• Case studies

Group of participants

Those responsible for finance and treasury as well as for controlling, risk management and auditing, customer advisors from banks, and employees from money market and foreign exchange trading.

Targets

• When does currency risk arise and why is it often difficult to identify?
• Where can direct and indirect currency risks be found in the operating business and how do they show up in accounting?
• Why do accounting and treasury present risks and hedges differently?
• How is the systematic definition of a risk strategy carried out?

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