Derivatives and Hedging Strategies Training Course

Duration 5 days 10 modules · 33 contact hours
Level Intermediate Certificate on completion
Who attends Treasury Managers, Treasury Analysts and others
Fee from USD 1,100 KSh 95,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 9 Nov 2026 Course code SD-TI-015

Before you join: Participants should be comfortable reading financial statements, calculating present values, and interpreting basic interest rates, foreign-exchange quotes and cash-flow forecasts.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Treasury and finance teams must protect budgets, borrowing costs, foreign-currency cash flows and commodity margins without creating unnecessary cost, accounting volatility or control failures. A derivative can address a defined exposure, but an unsuitable notional, tenor, hedge ratio or contract term can leave material residual risk. Decisions also need to account for liquidity, collateral calls, counterparty credit, hedge accounting and delegated authority.

This course develops practical capability in forwards, futures, swaps and options used for interest-rate, foreign-exchange, commodity and investment exposures. Participants assess exposure data, compare hedge structures, calculate hedge ratios, interpret mark-to-market values and test positions under adverse market scenarios. They examine basis risk, option premiums, layered hedging, counterparty limits, collateral arrangements and trade controls. The programme also addresses IFRS 9 and ASC 815 requirements for cash-flow, fair-value and net-investment hedges.

Teaching combines short technical briefings with worked treasury cases, group analysis, pricing and payoff simulations, and structured decision-making tasks. Cases reflect common situations such as floating-rate debt, imported goods, foreign-currency receivables and commodity procurement. Participants build and refine a practical Hedging Strategy Pack containing an exposure register, instrument selection matrix, hedge designation memorandum, control checklist and application plan. A certificate of completion is issued to participants who complete the course.

The course is suited to professionals who already work with cash flows, borrowing, currencies, investments, procurement contracts or financial reporting and need a stronger basis for derivative decisions and oversight.

What you will be able to do

  • Map transaction, translation, interest-rate and commodity exposures using an exposure register
  • Price forwards, swaps and futures from market conventions and discounted cash flows
  • Compare option, collar and swap structures using payoff and cost-risk analysis
  • Calculate hedge ratios, basis risk and residual exposure for defined positions
  • Assess derivative values and sensitivities using mark-to-market, Greeks and scenarios
  • Design layered hedging programmes within policy limits and forecast certainty bands
  • Prepare IFRS 9 or ASC 815 hedge designation documentation and effectiveness evidence
  • Produce a board-ready hedge recommendation with controls, accounting and reporting implications

Benefits of attending

For you

  • Confidence challenging bank derivative quotations and hedge recommendations
  • Ability to explain swap, forward and option choices to senior stakeholders
  • Practical skill in reviewing mark-to-market values and collateral requirements
  • Stronger contribution to hedge accounting documentation and audit evidence
  • A reusable method for converting exposure data into hedge proposals

For your organisation

  • Lower unhedged exposure to currency, interest-rate and commodity price movements
  • Better alignment between hedge tenors, forecast certainty and policy limits
  • Clearer evidence supporting IFRS 9 or ASC 815 hedge accounting treatment
  • Improved controls over counterparty risk, confirmations, collateral and settlements
  • More consistent management reporting on hedge coverage and residual risk

Course modules

10 modules over 5 days

Participants can identify financial exposures and match them to the economic characteristics of derivative instruments.

  • Derivative contract economics: underlyings, notional amounts, maturity, settlement and payoff profiles
  • Distinguishing exchange-traded futures from OTC forwards, swaps and options
  • Mapping corporate exposures to transaction, translation, economic and commodity risks
  • Long and short positions interpreted through cash-flow and fair-value effects
  • Reading term sheets: dates, conventions, fixing sources, margins and close-out
  • Using payoff diagrams to compare linear and non-linear instruments

Participants can evaluate interest-rate derivative structures for borrowing and investment exposures.

  • Interest-rate benchmarks: SOFR, SONIA, EURIBOR and overnight compounding conventions
  • Forward rate agreements priced from discount factors and accrual fractions
  • Plain-vanilla swaps: fixed-floating cash flows, payment calendars and day counts
  • Swap valuation using projected floating legs and discount curves
  • Futures hedges adjusted for contract size, basis and tick value
  • Interest-rate options: caps, floors, swaptions and payer-receiver payoffs

Participants can select and assess foreign-exchange hedges for committed and forecast transactions.

  • Foreign-exchange exposure classified by currency, timing, certainty and accounting designation
  • Forward contracts quoted outright and through forward points
  • Money-market hedges constructed from borrowing, lending and spot transactions
  • Currency swaps matched to foreign-currency debt and forecast cash flows
  • Vanilla options compared through premiums, strike rates and participation
  • Cross-currency basis and settlement conventions incorporated into hedge decisions

Participants can assess futures and option strategies for commodity and investment price exposures.

  • Commodity price exposures linked to procurement volumes, inventory and sales commitments
  • Exchange-traded futures hedges sized using contract specifications and conversion factors
  • Basis risk measured between physical prices, benchmarks and hedge instruments
  • Collars, zero-cost structures and participating forwards assessed against policy limits
  • Equity index futures and options used for portfolio beta hedging
  • Volume uncertainty addressed through layered hedges and optionality

Participants can interpret derivative valuations and quantify sensitivity to market movements.

  • Mark-to-market values built from observable curves, forwards and volatility inputs
  • Present-value calculations apply discount factors, accruals and compounding conventions
  • Option values interpreted using intrinsic value, time value and Greeks
  • Delta, gamma, vega and theta linked to residual risk
  • Black-Scholes option pricing assumptions tested against market quotes
  • Scenario analysis separates rate, currency, commodity and volatility shocks
  • Value-at-Risk compared with stress testing and sensitivity limits

Participants can design hedging programmes that reflect exposure quality, policy limits and risk appetite.

  • Exposure register captures amount, currency, tenor, probability and risk owner
  • Hedge objectives translated into permitted instruments, ratios and performance measures
  • Layered hedge programmes align certainty bands with rolling forecast horizons
  • Hedge ratios calculated from exposure quantities, betas and contract sizes
  • Cost-risk comparisons evaluate certainty, upside retention, premiums and liquidity
  • Policy limits set tenors, counterparties, delegated authority and exception escalation
  • Residual exposures documented through risk acceptance and management reporting

Participants can prepare core documentation and assess accounting treatment for designated hedges.

  • IFRS 9 hedge accounting eligibility assessed for documentation and economic relationship
  • ASC 815 designation requirements compared with IFRS 9 treatment
  • Cash-flow hedges separate effective reserve movements from profit-or-loss reclassification
  • Fair-value hedges adjust carrying amounts and offset derivative changes
  • Net-investment hedges address foreign operations and cumulative translation differences
  • Hedge effectiveness measured using qualitative assessment and quantitative methods
  • Designation memoranda specify risk components, ratios, sources and testing frequency

Participants can assess counterparty exposure and apply essential derivative control procedures.

  • ISDA Master Agreement provisions: events of default, termination and close-out
  • Credit Support Annex mechanics govern collateral thresholds, haircuts and margin calls
  • Counterparty limits incorporate ratings, potential future exposure and wrong-way risk
  • Credit valuation adjustment explains counterparty-default effects on derivative pricing
  • Central clearing requirements distinguish cleared swaps from bilateral OTC trades
  • Trade confirmations reconciled against economic terms, dates and settlement instructions
  • Operational controls separate deal capture, valuation, confirmation and payment approval

Participants can monitor hedge performance and report market risk clearly to management.

  • Daily position reports reconcile front-office trades with independent valuation records
  • Cash-flow-at-risk quantifies budget exposure under defined market scenarios
  • Stress tests combine adverse moves, basis widening and liquidity assumptions
  • Limit breaches escalated through pre-agreed thresholds, approvals and remediation actions
  • Hedge performance dashboards track coverage, P&L, collateral and residual exposure
  • Board reporting distinguishes market movements, policy compliance and forecast changes

Participants can present a defensible hedging recommendation and prioritise actions for their workplace.

  • End-to-end hedge proposals connect exposure evidence, instrument choice and governance
  • Bank loan repricing case assesses swaps, caps and forecast interest expense
  • Importer currency case compares forwards, options and layered hedge ratios
  • Commodity procurement case tests futures coverage against volume and basis uncertainty
  • Decision papers present alternatives, assumptions, costs, accounting and residual risks
  • Personal application plan identifies priority exposures, stakeholders and first actions

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Treasury exposure register template
  2. Instrument selection decision matrix
  3. Hedge designation memorandum template
  4. Derivative valuation and sensitivity model
  5. ISDA and collateral control checklist
  6. 90-day hedging application plan

Who should attend

  • Treasury Managers — responsible for funding, liquidity and financial risk decisions
  • Treasury Analysts — preparing exposure reports, hedge proposals and dealer instructions
  • Corporate Finance Managers — assessing borrowing costs and interest-rate risk
  • Financial Controllers — overseeing derivative accounting, valuation and financial reporting
  • Risk Managers — setting market-risk limits and monitoring hedging effectiveness
  • Procurement and Commodity Managers — managing price risk in contracted purchases

Skills and tools covered

Derivative valuationFX hedgingInterest-rate hedgingHedge accountingCounterparty riskHedge governance

Tools and standards

ISDA Master Agreement, Credit Support Annex, IFRS 9, ASC 815

How the course runs

Training methodology

Short instructor briefings introduce contract mechanics, pricing conventions, hedge accounting and control requirements. Worked cases use realistic treasury data for debt portfolios, currency receivables, procurement contracts and investment positions. Group exercises compare hedge alternatives, construct payoff profiles and assess scenario results. Simulations examine market movements, basis risk, margin calls and collateral impacts. Participants then apply the methods to their own responsibilities through structured hedge recommendation and application planning.

Requirements and prerequisites

Participants should be comfortable reading financial statements, calculating present values, and interpreting basic interest rates, foreign-exchange quotes and cash-flow forecasts. Prior treasury, finance, investment, audit or risk experience is useful, particularly where the participant handles borrowing, currencies, commodities or financial reporting. The course assumes no prior derivatives dealing experience and does not require advanced calculus, programming, a trading licence or access to market-data terminals. Participants should bring a calculator and recent examples of exposures they manage, where permitted.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

You should understand basic finance concepts, including cash flows, interest rates, foreign-exchange quotations and present value. Prior derivatives experience is helpful but not required; the course starts with contract mechanics before moving to valuation, hedge design and accounting.

Bring a calculator suitable for financial calculations and, if your employer permits it, anonymised examples of debt, currency, commodity or investment exposures. Course materials are provided, including templates that can be adapted after the programme.

It is designed for treasury, finance, risk, accounting, investment and procurement professionals who influence exposure management or review derivative transactions. It also suits managers who approve hedges or need to interpret treasury reporting.

General risk courses commonly cover broad market, credit and operational risk concepts. This programme concentrates on selecting, valuing, accounting for and controlling derivatives used to hedge defined treasury and investment exposures.

Participants can use the exposure register, hedge selection matrix and designation memorandum to structure real hedging decisions. The course also provides methods for reviewing dealer proposals, monitoring collateral and presenting residual risk to management.

Each day runs from 08:30 to 16:30 and provides about 6.5 contact hours, for approximately 32.5 contact hours overall. Time is divided between technical instruction, applied cases, group work, simulations and individual application planning.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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