In this program, we examine the immense need to look at contemporary risks facing business, such as COVID-19, low trade, high unemployment, and volatile market and credit risk conditions that are unique. We will ground our study in the appropriate risk theory, including development of new stress testing, scenario analysis and market risk models. Our perspective will be on how organizations can expect to recover from the current crisis and what paths forward exist. Special emphasis will be given to the disruption of markets, trade, and the rapid movement to digital business and what it means to markets and assets in the future. Come prepared to explore these risks and how you will chart a successful path forward!
How you will benefit
- Gain an excellent review of the Theory of Risk Management, where we will cover the basis for Market, Credit, and Operational Risk
- Examine how firms will recover from the current crisis and how your firm can develop new models for risk recovery
- Chart a path forward, examining how risk tools like stress testing, scenario analysis and even capital allocation will change going forward
- Gain real-world, practical guidance that will allow you to apply the insights and learnings directly in your role
|Day 1||15:00 – 19:00|
|Day 2||15:00 – 19:00|
|Day 3||15:00 – 19:00|
Module I: Theory of Risk
In this module, we will examine fundamental theories and models that provide the measurement and management of market risk, credit risk, and operational risk. Like in the 2008 crisis, these models were tested, showing some limitations. Our work will focus on the assumptions of theory in how markets respond to shocks and recover from that shock. We will review the theoretical underpinnings of risk management and reveal data and model assumptions that lead to challenges in risk planning.
Module II: Recovery from Risk
The COVID-19 crisis has altered many businesses. For many industries, like hotels and travel, the benefits of low interest rates and seemingly available labor have not been enough to spur recovery. Still, the environment of low-cost capital and flexible working schemes has created growth in many industries, especially on the digital spheres. Much of this growth is supported directly or indirectly by governmental stimulation through low interest rates and worker subsidies. Additionally, many commodities in energy have been low. We will explore the disparity in recovery for various industries, especially those that focus on digital disruption. Special emphasis will be given to guiding you in developing a model for recovery in your industry.
Module III: The Path Forward – Overcoming Risk
The financial and business world will not soon forget the COVID-19 crisis. It has already changed how we view vulnerability in assets and businesses and how banks and insurers will examine the risks going forward in investments. Assets will be re-priced, reflecting the preference for those that can weather shocks from pandemics and economic unrest. We will explore this fascinating topic together, while rooting our risks outlook in stress testing and scenarios analysis.
This program is relevant to:
- Regulatory and compliance executives
- Risk management executives
- Any risk professionals wanting to advance their career in risk management
- Chief Risk Officers
- Market, Credit, and Operational Risk specialists
The foundations apply across all sectors: banking, insurance, asset management, hedge funds, energy, securities, regulation/supervision, and more.