Market Risk and Treasury Office Management

The Market and Treasury Office Risk Management course provides delegates with comprehensive knowledge and practical skills to effectively manage market risk and oversee the Treasury (middle) office functions within a banking environment.

Why is Market Risk Management so important?

Market risk looks at the potential losses or adverse impact on a bank's financial position due to changes in market conditions that may arise from fluctuations in interest rates, exchange rates, stock prices, commodity prices, and other market variables. Identifying, measuring, and managing these risks to protect the bank's capital and ensure stable financial performance is key to invaluable in assessing the potential impact of market fluctuations on the bank's assets, liabilities, and trading activities, and implementing strategies to mitigate or hedge against these risks.

Why the Treasury (Middle) Office is vital?

The Treasury middle office is responsible for treasury operations, managing the bank's cash flows, investments, and funding activities. Treasury office risk management is about identifying, assessing, and managing the risks associated with these activities. This includes monitoring liquidity risk, interest rate risk, credit risk, and counterparty risk to ensure the bank maintains sufficient liquidity, optimises funding sources, and minimises potential losses.

It also plays a crucial role in complying with regulatory requirements, establishing the controls and risk management policies and procedures to support the bank's treasury operations, working with various stakeholders, such as risk managers, traders, and senior management, to make sure the practise runs smoothly and meets the bank's overall risk appetite and strategic objectives.

What this course covers

Market and Treasury Office Risk Management in Banking course covers key concepts, strategies, and regulatory frameworks to ensure robust risk management and optimise treasury operations in alignment with market risk objectives.

Market Risk Management:
  • Understand different types of market risks, including interest rate risk, foreign exchange risk, and liquidity risk.
  • Gain insights into market risk measurement methodologies, including Value at Risk (VaR).
  • Develop risk mitigation strategies and controls to manage market risk exposures.
  • Explore stress testing and scenario analysis techniques to assess potential market risk impacts.
  • Implement effective market risk monitoring and reporting processes.
Treasury Middle Office Functions:
  • Comprehend the role and responsibilities of the treasury middle office within a banking organization.
  • Establish effective governance and control frameworks for treasury operations.
  • Gain insights into regulatory requirements and industry best practices for treasury middle office risk management.
  • Learn about collateral management, margining, and counterparty credit risk management.
  • Understand the importance of accurate and timely valuation of treasury instruments.
Financial Products and Derivatives:
  • The various financial products, including bonds, derivatives, and structured products.
  • The risks associated with financial products and derivatives.
  • Explore risk measurement and valuation techniques for derivatives.
  • Gain insights into hedging strategies and risk mitigation approaches using derivatives.
Regulatory Compliance:
  • Understand regulatory requirements related to market risk management in banking.
  • Learn about Basel III guidelines and regulations governing market risk.
  • Comprehend reporting and disclosure requirements for market risk exposures.
  • Stay updated with emerging regulatory developments and their impact on market risk management.


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