Market Risk Management
Introduction
This programme provides a practical, real-world understanding of Market Risk Management as practiced inside banks and treasury functions.
Unlike theoretical or trading-oriented courses, this programme focuses on how risk is actually measured, monitored, controlled, and escalated on a daily basis. It explains not only the tools used—such as PV01, VaR, stress testing, and limits—but also the discipline, governance, and decision-making that prevent small risks from turning into large losses.
The course is structured into five logically connected sessions, moving from risk foundations to advanced measurement, hedging, daily control processes, and liquidity risk—providing a complete and coherent view of market risk management.
Course Highlights
- Risk-manager perspective, not trader perspective
- Strong focus on real banking and treasury practices
- Clear explanation of risk measurement and limits
- Practical desk-level examples and failure scenarios
- Dedicated focus on liquidity risk and crisis behaviour
Benefits of the Programme
- By completing this programme, participants will be able to:
- Understand how market risk arises across FX, interest rates, and trading portfolios
- Interpret key market risk measures such as PV01, VaR, MTM, and stress test results
- Understand how risk limits are set, monitored, breached, and escalated
- Appreciate the role of independent risk teams and governance structures
- Recognize early warning signals before losses escalate
- Understand why liquidity risk often causes greater damage than market movements
- Think like a risk professional, not just a finance student
This programme builds decision-making clarity, not just technical awareness.
Best Suited For
- Market risk, ALM, and risk management teams
- Finance professionals transitioning into risk roles
- MBA / finance students preparing for banking or treasury careers
- Professionals seeking a practical understanding of how banks control market risk
- Banking and treasury professionals
Course Material Includes
- 5 Professionally Structured Video Sessions
- Real-world banking and treasury examples
- Practical explanations of risk tools and controls
- Structured learning flow from fundamentals to advanced concepts
Programme- Market Risk Management
Session 1 – Foundations of Risk & Market Risk
This session establishes the foundation for the entire programme.
Participants will understand:
- What risk truly means in financial institutions
- Different types of financial risk and where market risk fits
- Why risk cannot be eliminated, only managed
- The role of risk management in protecting capital and stability
This session aligns all participants to think with a risk-manager mindset from the start.
Session 2 – Market Risk Measurement & Limits
This session focuses on how market risk is quantified and controlled.
Participants will learn:
- Key market risk factors across trading portfolios
- Sensitivity measures such as PV01, duration, and delta
- Conceptual understanding of VaR and stress testing
- How risk limits are structured and monitored
This session explains how risk is translated into numbers and limits used for decision-making.
Session 3 – Hedging & Risk Mitigation
This session explains how financial instruments are used to control risk, not speculate.
Participants will understand:
- The purpose of hedging in market risk management
- How derivatives reduce or transform risk exposure
- Trade-offs between cost, protection, and residual risk
- Practical hedging case studies from banking environments
The focus is on risk reduction and discipline, not trading strategies.
Session 4 – Advanced Market Risk Measurement
This session deepens understanding of risk models and their limitations.
Participants will learn:
- Different approaches to VaR and why results differ
- The importance of back-testing and model validation
- Stress testing versus scenario analysis
- Why models fail during abnormal market conditions
This session builds critical thinking, not blind trust in models.
Session 5 – Market Risk Monitoring, Control & Liquidity Risk
The final session connects measurement to real-world outcomes.
Participants will understand:
- Daily risk control workflows followed in banks
- Role of independent risk teams and escalation processes
- Early warning signals and behavioral risk
- Market liquidity risk and funding liquidity risk
- Why liquidity breakdown turns market risk into real losses
This session explains how risk is actually prevented from becoming a crisis.