Upon successful completion of this program, participants will be able to:

• Articulate the core principles of sound corporate governance, including transparency and accountability.
• Differentiate between the three main categories of financial risk (market, credit, and liquidity).
• Apply standard techniques for measuring and quantifying financial risk exposure (e.g., VaR).
• Understand the structure and functions of key governance bodies (Board, Audit Committee, Risk Committee).
• Develop and implement a comprehensive financial risk policy framework.
• Analyze the impact of regulatory frameworks (e.g., Basel III, Solvency II) on financial institutions.
• Evaluate hedging strategies and derivative instruments for mitigating market risk.
• Integrate financial risk reporting into the broader Enterprise Risk Management (ERM) system.

• Financial Analysts and Managers
• Corporate Treasurers and Controllers
• Internal and External Auditors
• Members of Board Audit and Risk Committees
• Compliance Officers in the financial sector
• Investment and Portfolio Managers
• Senior Executives requiring governance oversight knowledge

• **Scenarios:** Developing a hedging strategy for a major manufacturing firm exposed to commodity price volatility and currency fluctuations.
• **Case Studies:** Analyzing the governance failures leading to a major financial corporate scandal (e.g., Enron, WorldCom) and identifying control gaps.
• **Group Activities:** Collaborative design of a Risk Committee charter, defining its core responsibilities and reporting lines to the Board.
• **Individual Exercises:** Calculating the Value-at-Risk (VaR) for a simple financial portfolio using historical data.
• **Mini-Case Studies:** Rapid evaluation of a bank's counterparty credit risk exposure based on provided balance sheet and rating information.
• **Syndicate Discussions:** Debating the appropriate balance between risk-taking for growth and conservative financial stability.
• **Reporting Brief:** Preparing a financial risk briefing paper for the Board Audit Committee.

Unit 1: Foundations of Corporate Governance

• Key governance models (e.g., one-tier vs. two-tier boards) and their implications.
• The roles and responsibilities of the Board, CEO, and Corporate Secretary.
• The function and importance of the Audit, Risk, and Nomination/Remuneration Committees.
• Principles of accountability, transparency, and ethical leadership.
• Shareholder rights and stakeholder engagement in governance.

Unit 2: Financial Risk Categories and Measurement

• Detailed analysis of Market Risk (interest rate, currency, equity, commodity risk).
• Credit Risk: counterparty risk, default probability, and loss given default (LGD).
• Liquidity Risk: funding risk and market liquidity risk management.
• Introduction to risk quantification methodologies: Value-at-Risk (VaR) and Stress Testing.
• Implementing effective limits management and exception reporting.

Unit 3: Risk Mitigation and Hedging Strategies

• Developing and implementing comprehensive treasury and hedging policies.
• The use of financial derivatives (forwards, futures, options, swaps) for risk transfer.
• Strategies for managing foreign exchange exposure in global operations.
• Credit risk mitigation techniques: collateral, netting agreements, and credit derivatives.
• Analyzing the regulatory capital requirements for financial institutions.

Unit 4: Governance of Risk Oversight

• Establishing a robust Three Lines of Defense model for financial risk.
• The role of the Chief Risk Officer (CRO) and the independent risk function.
• Developing the corporate Risk Appetite Statement (RAS) and tolerance limits.
• Integrating financial risk reporting into the holistic ERM framework.
• Compliance with major financial regulatory regimes (e.g., Sarbanes-Oxley, Dodd-Frank).

Unit 5: Financial Crisis Management and Ethics

• Developing contingency funding plans (CFP) for liquidity crises.
• The governance surrounding recovery and resolution planning (RRP).
• Ethical issues in financial modeling, derivatives use, and risk disclosure.
• The role of risk culture and "tone at the top" in managing financial conduct risk.
• Analyzing historical financial crises and identifying governance and risk failures.