Market Risk Management for Treasury Operations of DFIs

The Treasury operations of Development Finance Institutions (DFIs) are uniquely exposed to market risk, primarily due to their heavy reliance on debt issuance in global capital markets and the necessity of managing various currency and interest rate mismatches across long-term development assets. This specialized course focuses on applying sophisticated **market risk management techniques**—including Value-at-Risk (VaR) and advanced hedging strategies—tailored to the DFI context. Participants will learn how to set market risk limits that align with the DFI's mandate, manage portfolio risk from illiquid assets, and utilize financial derivatives prudently to protect the balance sheet from adverse market movements.