The programme is designed to discuss the use of derivatives and structured ﬁnancial instruments for corporate hedging and risk management in practice. The focus of the programme would be on understanding the products popularly offered to companies by banks to hedge foreign exchange, commodity price and interest rate risks.
The objective of the programme is to expose senior management in medium to large sized corporations to the practicalities of corporate hedging and risk management. In particular, it would enable participants to decide the optimal mix of hedging instruments, and using examples from real-world term-sheets expose them to consequences of hedging with the wrong products.
Identifying risk exposures
Which risks to hedge: The need for hedging
Which instruments to hedge different risks with: Deciding the mix of forwards and options
Hedging using structured products (e.g. barrier options): What is possible and what is not
Identifying mis-selling of structured products and potential red ﬂags
Basis risk and hedge accounting
Risk management policy for corporations
Managers working in ﬁnance and treasury department at medium to large sized corporations, banks and infrastructure and project ﬁnance companies.
The pedagogy will include lectures, case studies, group discussion and exercises.