Financial risk is an inevitable part of business. It’s how financial risk is managed that separates a thriving organisation from a floundering one. Finance professionals play an integral role in this process, identifying, monitoring and mitigating the specific financial risks an organisation is exposed to.

This course is designed to broaden your understanding of the most important types of financial risk an organisation can face, with a particular focus on currency and interest rate risk. We’ll examine tried-and-tested methods for quantifying and mitigating these risks so that you can help an organisation to navigate financial risk successfully, minimising potential losses and maximising returns.

• The key types of financial risks an organisation can face so that you’re better prepared to identify and anticipate them 

• How to quantify risk using value at risk, expected values and standard deviation to help you assess and communicate the risks associated with investments

• Transaction risk and translation risk and how they can be mitigated to develop your awareness of how these crucial types of currency risk can be managed

• Need-to-know exchange rate terminology to ensure you’re able to understand and contribute to discussions on the topic

• The interest rate parity theory, purchasing power parity theory and Fisher effect and how these theories can be used to predict currency movements 

• The pros and cons of key currency hedging techniques, to help you evaluate the usage of different techniques in different circumstances

• Interest rate risk and approaches to managing it to ensure that the business’s borrowing costs stay low and the business maintains a risk profile that matches its investors’ risk appetite