Course Name
Corporate Financial Risk Management
Schedule
March 17, 2025 - March 27, 2025
Schedule via Zoom:
March 17, 19, 20, 24, 26 & 27, 2025
Mondays, Wednesdays & Thursdays
5:30 pm - 9:00 pm
Early Eagle Rate:
Php 15,000
Valid Until:
March 04, 2025
Description
Every business is exposed to risk. Oftentimes, risk-averse individuals shun the very idea of going into business because of it. Managers tend to shirk risky but potentially beneficial new investments/projects for fear that if these fail, they might lose their jobs.
Risk is multidimensional, affecting almost every aspect of a business endeavor: financial, operational, environmental as well as regulatory, among others. Having the proper tools to deal with these risks can conserve resources and avert financial hardship.
This no-frills, no-nonsense module familiarizes the participants with the strategies and products used to manage a broad spectrum of corporate financial risks, from volatile interest and currency rates, unstable commodity prices to fickle government monetary policies. It first presents the basic contracts used to manage the risks, then proceeds to unveil an arsenal of risk management techniques and strategies, analyzing the benefits and limitations of each, and detailing their practical business applications. Through a series of exercises and examples, participants gain a useful experience structuring hedges and reducing their financial risk exposure.
Who should attend
This module is highly recommended for corporate risk officers, business professionals and consultants, and other finance practitioners involved, one way or another, in implementing and/or providing practical and expert advice/guidance in the use of the latest financial risk management tools. Those familiar with or have adequate working knowledge of basic business mathematics and statistics will find this module most meaningful and beneficial.
Successful completion of this module enables the participants to:
- Recognize the importance of implementing corporate financial risk management techniques and strategies;
- Discuss the four basic derivatives building blocks: options, forwards, futures and swaps;
- Understand how derivative instruments/transactions are used to mitigate specific risks;
- Use quoting conventions for various short- and long-term securities and risk management products;
- Explore arbitrage and currency management opportunities;
- Apply innovative interest rate swap variations for specific needs; and
- Use the Black-Scholes option pricing model (OPM) to value call or put options as well as warrants.
The module, which employs lectures, interactive discussions, case studies and practical application exercises, covers the following areas:
- Financial risk management: an overview and introduction
- Taxonomy of risks
- Basic contracts and their markets
- Hedging instruments: types, descriptions, pricing, trading
- Structuring the hedge: issues, factors, mechanics
- Implementing the hedge: the decision, dealing and credit
- Legal and regulatory compliance issues
- Selected business studies and applications
Dr. Elvira P. de Lara-Tuprio is a Professor of the Mathematics Department, School of Science and Engineering, Ateneo de Manila University. She has been teaching Mathematics at the Ateneo since 1990 and financial mathematics, including financial derivatives and risk management, since 2009.
Dr. de Lara-Tuprio has been doing consultancy projects for local banks since 2010, mainly doing review and validation of their mathematical models for financial risk management. She has reviewed banks’ models for measuring interest rate risk in the banking books, liquidity risk, Value-at-Risk, and so on. Aside from finance, her research and consultancy projects include epidemiological modeling.
She served as Resource Person for the Inter-Agency Task Force (IATF) for The Management of Emerging Infectious Diseases during the Duterte administration and provided data analytics and science-based information to guide policymakers in the pandemic response. In recognition of her contributions, she was awarded by the Philippine President the Order of Lapu-Lapu Rank of Magalong medal.
Dr. de Lara-Tuprio’s research areas and professional work include pure mathematics, financial mathematics, flood hazard modeling and mathematics education. Her publications are mainly on these areas. She has also written Mathematics textbooks for high school and college. Outside the academe, she has served different government agencies as consultant or resource person, including the Department of Finance, Department of Education and Department of Health.
