Financial Risk Management and Hedging Training Course

Duration 10 days 19 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends Treasury Managers, Finance Managers and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 9 Nov 2026 Course code SD-FM-048

Before you join: Participants should understand financial statements, discounted cash flow, budgeting and the basic purpose of foreign exchange, debt and derivatives.

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

Financial risks can erode margins, disrupt cash flow, breach covenants and create earnings volatility before management sees the full position. Treasury, finance and risk teams need more than a list of exposures: they need clear risk appetite, reliable exposure data, measured hedge effectiveness and documented decisions. This course addresses the practical work of identifying, measuring, treating and reporting financial risks arising from foreign exchange, interest rates, commodities, liquidity, counterparties and derivative transactions.

Participants learn to build a financial risk framework that connects board-approved appetite with treasury policy, dealing limits, risk reports and hedge decisions. The course covers exposure mapping, cash-flow-at-risk, value-at-risk, scenario analysis, stress testing, foreign-exchange hedging, interest-rate risk management, commodity hedging, credit assessment, liquidity contingency planning and derivative valuation. Participants also examine ISDA documentation, collateral arrangements, IFRS 9 hedge accounting, IFRS 7 disclosures and controls over trading and treasury operations.

Teaching combines instructor briefings with calculations, sector cases, group analysis, simulations and structured application planning. Cases reflect issues faced by corporates, banks, public bodies and development organisations, including currency mismatch, refinancing pressure, supplier-price volatility and counterparty default. Throughout the first week, participants begin a financial risk assessment for a realistic organisation; during the second week, they add hedge proposals, controls, accounting considerations and reporting. They leave with a completed financial risk management and hedging pack that can be adapted for their own treasury or finance function.

The course suits professionals who already work with budgets, cash flow, financing, treasury, financial reporting or risk decisions and now need stronger technical judgement on financial risk treatment and hedging choices.

What you will be able to do

  • Map foreign-exchange, interest-rate, commodity, liquidity and counterparty exposures from financial data
  • Set financial risk appetite, limits and escalation thresholds using ISO 31000 principles
  • Measure market risk using sensitivity analysis, cash-flow-at-risk, value-at-risk and stress testing
  • Design foreign-exchange, interest-rate and commodity hedge strategies using derivatives and natural offsets
  • Evaluate derivative pricing, counterparty credit risk, collateral terms and ISDA documentation
  • Prepare IFRS 9 hedge designation, effectiveness assessment and accounting documentation
  • Build liquidity forecasts, funding plans and contingency actions for stressed cash positions
  • Present a board-ready financial risk management and hedging recommendation

Benefits of attending

For you

  • Make defensible hedge recommendations using measured exposures and stated risk tolerances
  • Interpret derivative term sheets, pricing drivers and collateral requirements with confidence
  • Prepare clearer financial risk reports for treasury committees and senior management
  • Apply IFRS 9 hedge accounting requirements to common corporate hedging arrangements
  • Build a reusable financial risk management pack for workplace application

For your organisation

  • Improved visibility of currency, rate, commodity and liquidity exposures
  • More consistent hedge decisions against approved appetite and dealing limits
  • Reduced risk of uncontrolled derivative positions and counterparty concentrations
  • Stronger evidence for IFRS 9 documentation, audit review and financial disclosures
  • Earlier identification of cash shortfalls, covenant pressure and refinancing risks

Course modules

19 modules over 10 days

Participants can establish financial risk governance, appetite and reporting responsibilities.

  • Risk appetite statements linked to earnings, liquidity, capital and covenant limits
  • Taxonomy separating market, credit, liquidity, operational and model risk
  • Three lines model assigning ownership, challenge and independent assurance
  • ISO 31000 principles translated into treasury and finance risk governance
  • Risk registers scored with inherent, residual and target risk ratings
  • Escalation thresholds, committee mandates and board reporting calendars

Participants can identify and prioritise financial risk exposures from operating and financial data.

  • Risk factor mapping from exposures to currencies, rates, commodities and spreads
  • Gross versus net exposure identification across contractual and forecast transactions
  • Cash-flow-at-risk measured against budget and forecast tolerances
  • Exposure heat maps combining probability, impact, velocity and controllability
  • Materiality thresholds aligned with policy limits and delegated authorities
  • Risk data dictionaries defining source systems, ownership and refresh frequency

Participants can design reliable data controls and decision-focused financial risk reports.

  • Treasury management system data reconciled to ledgers, banks and confirmations
  • Front, middle and back office segregation of duties
  • Daily position reports showing notional, maturity, mark-to-market and limit usage
  • Key risk indicators linked to early-warning thresholds and management actions
  • Exception reporting for limit breaches, late confirmations and valuation disputes
  • Management information packs structured for executives, committees and board members

Participants can interpret the valuation drivers of common financial instruments and derivatives.

  • Present value calculations using discount factors, zero rates and forward rates
  • Yield curves constructed from deposits, futures, swaps and government securities
  • Mark-to-market values explained through market inputs and contractual cash flows
  • Day-count conventions, compounding frequencies and payment calendars
  • Credit valuation adjustment reflecting counterparty default risk in derivative values
  • Fair value hierarchy requirements under IFRS 13

Participants can quantify market risk using sensitivity measures and scenario-based analysis.

  • Basis point value calculated for fixed-income assets, debt and swaps
  • Duration and modified duration measuring interest-rate sensitivity
  • Delta, gamma, vega and theta interpreted for option positions
  • Foreign-exchange sensitivity calculated from currency positions and spot movements
  • Commodity price sensitivity linked to purchase volumes and contract pricing
  • Risk sensitivities aggregated by currency, tenor, business unit and counterparty

Participants can select and interpret market risk measures for management decisions.

  • Historical simulation value-at-risk using observed market return distributions
  • Parametric value-at-risk using volatility, correlation and confidence intervals
  • Monte Carlo simulation applied to nonlinear derivative payoff profiles
  • Backtesting value-at-risk forecasts against realised profit and loss
  • Stress scenarios incorporating rate shocks, currency devaluation and spread widening
  • Reverse stress testing identifies conditions that breach risk appetite

Participants can assess transaction, translation and economic foreign-exchange exposures.

  • Transaction exposure mapped from receivables, payables, loans and commitments
  • Translation exposure assessed for foreign subsidiaries and consolidation currencies
  • Economic exposure examined through pricing, sourcing and competitive position
  • Netting centres consolidate intercompany balances before external hedge execution
  • Matching currency revenues and costs reduces gross foreign-exchange exposure
  • Leading and lagging payments managed within tax and policy constraints

Participants can compare and recommend foreign-exchange hedge instruments for defined exposures.

  • Forward contracts lock exchange rates for committed currency cash flows
  • Foreign-exchange swaps manage short-term funding and settlement timing mismatches
  • Currency options protect adverse movements while retaining favourable participation
  • Non-deliverable forwards hedge restricted currencies without physical delivery
  • Forward points explained through interest-rate differentials and settlement dates
  • Hedge ratios selected from exposure certainty, appetite and budget rates

Participants can measure debt interest-rate risk and assess funding structure choices.

  • Fixed versus floating debt profiles aligned with cash-flow certainty
  • Repricing gap analysis identifies interest-rate reset mismatches by time bucket
  • Duration gap measures economic value sensitivity to yield changes
  • Debt maturity ladders reveal refinancing concentrations and rollover exposure
  • Covenant headroom monitored under interest-rate and earnings stress scenarios
  • Benchmark selection considers SOFR, SONIA, EURIBOR and local reference rates

Participants can design interest-rate hedges using swaps and option-based instruments.

  • Interest-rate swaps exchange fixed and floating payment obligations
  • Caps limit borrowing costs while preserving benefit from falling rates
  • Floors establish minimum returns on floating-rate investment portfolios
  • Collars combine purchased caps and written floors within premium constraints
  • Swaptions provide future rights to enter interest-rate swap contracts
  • Hedge effectiveness assessed against repricing dates, notional amounts and benchmarks

Participants can evaluate commodity price exposures and suitable hedging responses.

  • Commodity exposure measured from consumption volumes, inventory and purchase commitments
  • Futures contracts hedge standardised price risk through exchange-traded positions
  • Over-the-counter swaps match tailored commodity grades, locations and tenors
  • Basis risk arises when hedge and physical commodity prices diverge
  • Procurement contracts reviewed for indexation, pass-through and pricing clauses
  • Hedge volumes adjusted for forecast uncertainty, seasonality and operational flexibility

Participants can assess derivative contractual protections and counterparty credit exposures.

  • ISDA Master Agreement terms establish close-out netting and default provisions
  • Credit Support Annex terms govern collateral calls, thresholds and eligible assets
  • Potential future exposure estimated from maturity, volatility and netting sets
  • Wrong-way risk identified where exposure increases with counterparty distress
  • Counterparty limits allocated using credit ratings, financial analysis and concentration
  • Confirmation matching controls reduce settlement disputes and operational errors

Participants can prepare liquidity forecasts and contingency responses under stressed conditions.

  • Thirteen-week rolling cash forecasts built from receipts, payroll and supplier data
  • Liquidity gaps measured by currency, entity, bank account and maturity bucket
  • Committed facilities, overdrafts and commercial paper assessed for availability
  • Liquidity coverage ratios adapted for corporate treasury cash stress testing
  • Contingency funding plans define triggers, actions, owners and communication routes
  • Cash pooling structures assessed for legal, tax and trapped-cash constraints

Participants can assess credit exposures arising from customers, banks and trade transactions.

  • Counterparty financial analysis reviews liquidity, profitability, gearing and cash generation
  • Credit limits set using probability of default and loss given default
  • Expected credit loss concepts linked to receivables and financial guarantees
  • Letters of credit and bank guarantees reduce cross-border settlement risk
  • Credit insurance evaluated for exclusions, deductibles and claims procedures
  • Aging analysis identifies overdue concentrations and deteriorating customer payment behaviour

Participants can document hedge relationships and explain their accounting consequences under IFRS 9.

  • Hedge designation documents risk, hedged item, instrument and risk-management objective
  • Cash flow hedges account for variability in forecast transaction cash flows
  • Fair value hedges recognise changes in hedged items and instruments
  • Net investment hedges address foreign operation translation exposure
  • Hedge effectiveness requirements assessed through economic relationship and credit risk
  • IFRS 7 disclosures explain risk exposures, sensitivities and hedge accounting effects

Participants can select hedge strategies using economic, accounting and operational criteria.

  • Hedging objectives distinguish cash-flow protection, earnings stability and value preservation
  • Instrument comparisons consider certainty, cost, flexibility, liquidity and accounting treatment
  • Hedge ratio decisions reflect exposure forecast quality and risk appetite
  • Cost of carry separates spot, forward points, premium and transaction charges
  • Prospective testing assesses whether proposed hedges meet stated objectives
  • Performance attribution separates market movement, basis risk and execution timing

Participants can specify operating controls for controlled financial market activity.

  • Dealing mandates define authorised instruments, tenors, currencies and counterparties
  • Pre-deal checks verify limits, approvals, market data and hedge purpose
  • Independent valuation controls challenge trader marks and model assumptions
  • Trade lifecycle controls cover capture, confirmation, settlement and reconciliation
  • Market conduct rules address confidentiality, conflicts and prohibited behaviour
  • Internal audit testing examines policy compliance, evidence and control exceptions

Participants can draft policy provisions and present financial risk decisions to governance bodies.

  • Treasury policy sections cover objectives, scope, limits, instruments and authorities
  • Risk dashboards present exposures, hedge coverage, utilisation and emerging issues
  • Board papers state decision options, financial impact, assumptions and recommendations
  • Limit breaches reported with root cause, corrective action and accountability
  • Policy exceptions governed through documented approval and time-bound remediation
  • Risk culture reinforced through training, attestations and management challenge

Participants can build, review and present a complete financial risk management and hedging pack for a defined organisation.

  • Exposure inventory consolidates currency, rate, commodity, liquidity and credit risks
  • Risk appetite and dealing limits aligned with financial objectives and constraints
  • Scenario analysis quantifies earnings, cash-flow and covenant effects
  • Hedge recommendations compare instruments, costs, residual risks and accounting outcomes
  • Liquidity contingency actions address forecast shortfalls and funding disruptions
  • Board risk pack presents governance, controls, implementation plan and decisions

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

What you take back to work

  1. Financial risk appetite and limits template
  2. Exposure inventory and risk heat-map model
  3. Market risk measurement workbook
  4. Foreign-exchange and interest-rate hedge assessment template
  5. IFRS 9 hedge designation checklist
  6. Board financial risk reporting pack

Who should attend

  • Treasury Managers — responsible for financial exposures, funding and hedge execution
  • Finance Managers — need to connect risk decisions with budgets, forecasts and reporting
  • Financial Risk Managers — require practical methods for market, liquidity and counterparty risk
  • Corporate Accountants — support IFRS 9 hedge accounting and financial statement disclosures
  • FP&A Managers — assess how financial risks affect cash flow and earnings forecasts
  • Internal Auditors — review treasury controls, delegated authorities and derivative governance

Skills and tools covered

Financial risk assessmentHedge strategy designMarket risk measurementDerivative evaluationLiquidity planningHedge accounting

Tools and standards

ISO 31000, IFRS 9, IFRS 7, ISDA Master Agreement

How the course runs

Training methodology

The instructor uses short technical briefings followed by worked calculations, case analysis, group exercises and decision simulations. Participants assess exposure data, compare hedge instruments, test scenarios and review treasury documentation. Cases include multinational trading, project finance, bank counterparties and commodity-dependent operations. Each participant develops elements of a financial risk pack during the course, receiving structured feedback on assumptions, calculations, controls and reporting. Classroom delivery is available in more than 50 cities, with the same instructor-led format available live online.

Requirements and prerequisites

Participants should understand financial statements, discounted cash flow, budgeting and the basic purpose of foreign exchange, debt and derivatives. Experience in corporate finance, treasury, accounting, banking, audit, risk or financial planning is helpful. Participants should be comfortable interpreting spreadsheets and performing percentage, interest-rate and present-value calculations. Prior derivative dealing, quantitative modelling, programming or specialist hedge-accounting experience is not required. The course explains technical calculations step by step, while expecting participants to engage with realistic financial decisions and supporting documentation.

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

Participants should understand financial statements, cash flow, interest rates and basic budgeting. The course does not require prior derivatives trading, programming or formal hedge-accounting experience.

Bring a laptop for calculations, document review and application planning. Participants may also bring an anonymised treasury policy, risk report, debt schedule or exposure data if their employer permits it.

It is designed for treasury, finance, financial risk, accounting, FP&A and internal audit professionals. It is particularly useful for people who influence hedge decisions or review treasury controls.

General corporate finance courses focus on investment appraisal, capital structure and financial performance. This course concentrates on identifying financial exposures, measuring risk, selecting hedges, controlling derivatives and meeting financial reporting requirements.

Participants build reusable materials including an exposure inventory, risk limits, hedge assessment and board reporting structure. These can be adapted to current currency, debt, commodity, liquidity or counterparty issues.

Each day runs from 08:30 to 16:30 and provides about 6.5 contact hours. The first week establishes governance, measurement and core hedge instruments; the second week covers documentation, liquidity, accounting, controls and the final capstone presentation.

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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