Certified Risk Analyst (CRA) Program

Introduction

Risk is inherent in every business decision that is taken, be they the decisions of the simple trader in the souk, or those of a CEO of a multi-billion-dollar turnover company. The goal of every successful business professional and decision-maker should therefore be to become a proficient and effective risk manager. By attending this course and obtaining your certification as a Certified Risk Analyst, you will learn the principal tools of effective risk management. During this course, you will explore the various risk exposures that may directly affect your organization. You will gain a clear understanding of up-to-the-minute theories and systems for risk management and develop your own set of tools and techniques for combating risk within your own organization. This is an innovative course that has been specifically designed to highlight the importance of accurate risk assessment and risk mitigation. This comprehensive training is packed with a highly interactive series of applied risk management workshops developing concepts in risk management, identification, quantification, and mitigation in business in the UAE and across the GCC.

Objectives

At the completion of this course the student will be able to:

• Understand the importance of risk management and mitigation, as well as using risk analysis as a key business driver
• Apply an internationally used risk management framework and a risk register to practical case studies in mitigating risk
• Develop an integrated strategy for the identification, analysis, prioritization, quantification, and mitigation of different types of risk including operating risk, market risk, strategic risk, and management risk
• Review the principles of corporate governance in the UAE and GCC and their role in compliance and manage risk mitigation
• Assess, quantify and mitigate different types of financial risk including foreign exchange risk, interest rate risk, and market risk using hedging through financial instruments
• Understanding the impact and the methods available to mitigate major strategic, operating and external business risks in a changing global environment
• Understand the importance of internal control, the role of internal audit and the use of internal reporting for corporate risk management and control
• Review and apply Risk Based Decision Making (RBDM) to the management process

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This highly practical course has been specifically designed for the following professionals:

• Risk Managers and Risk Analysts
• Corporate Treasury Managers in banks and corporations
• Finance Directors
• Finance Controllers
• Finance Managers
• Accountants
• Market risk staff
• Brokers
• Internal Auditors
• Anyone who is responsible for analysing company financial risk and dealing with the various risk exposures that can affect their organisation.

Course Outline

Introduction to Risk Management

• The importance of risk management for the company and its stakeholders
• The importance of risk control and mitigation
• Identification and classification of different types of risk
• Review of risk classification provided by the International Finance Corporation (IFC)

Implementation of an International Risk Management Framework

• Methods in applied risk identification
• Risk assessment through assessment of risk probability and impact
• Application of the risk management framework to mitigate prime risks
• The application of Expected Values in quantifying risk and assessing likely risk outcomes
• Risk mitigation and consolidation in the organization

The Risk Register and Its Application in Business

• Introduction to the risk register and how it is applied as best practice in business to identify, mitigate and monitor risks in business
• Review of the building blocks that constitute the risk register
• Application of construction techniques for the establishment of the risk register

Enterprise Risk Management and the Application of Good Corporate Governance

• Introduction to Enterprise Risk Management as outlined by the COSO Cube of New York’s Securities and Exchange Commission
• The principles of good corporate governance and its role in mitigating management risk
• The business case for risk management and the importance of good governance in risk management
• Review of the corporate governance principles of the UAE
• Compliance risk for listed companies and the importance of internal control in risk management

Financial Risk Management

• Introduction to the challenges of managing financial risks and introduction to different types of financial risk
• Assessment of market risk, exchange rate risks, and interest risk rates and how they can have a significant impact on the company’s financial performance
• Review of the role of Treasury and the application of treasury products in mitigating financial risk
• Introduction to measuring market risk through Variance at Risk

Commodity Price Risk Management

• Assessing the impact of commodity price fluctuations on company performance Review the impact of fluctuating oil prices on companies in the GCC
• Use of different types of financial hedging instruments including synthetic forwards
• Understanding how hedging instruments can mitigate against commodity volatility

Exchange Rate Risk Management

• Analysis of the impact of exchange rate risk on a company’s financial performance
• A review of current emerging market volatility arising from exchange rate volatility (exampled from Turkey and Argentina)
• Use of different financial instruments that can be applied in hedging against exchange rate volatility

Interest Rate Risk Hedging and Risks In Finance and Banking and Basel III Requirements

• An introduction to interest rate risks and using SWAPs to hedge against interest fluctuations
• Risks faced by banks and other financial institutions
• An overview of the principles of Basel II and III banking requirements
• The impact of assessing Risk-Weighted Assets in banks and financial institutions
• Other capital maintenance requirements arising from risk

Operating Risks and Their Management in Business

• Introduction to the challenges posed by operating risks
• Review of a number of operating risk events in business and how they were handled
• An overview of how internal control systems and processes can mitigate operating risks

External and Strategic Risk Management

• The importance of strategic risk assessment and management in the life of a corporate
• Creating the corporate’s generic strategy and the risks arising from strategic risk
• Review of models used to develop strategy including the rational model
• Reviewing examples of strategic risk and strategic failure and their lessons
• Assessing the increased nature of political risk in the business environment
• Using the PESTEL model to identify external risk factors that affect all businesses

Embedding a Risk Aware Culture in the Organization and the Role of Internal Audit in Risk Management

• Having assessed the impact of risk across organizations and covered many different risk mitigation techniques, we will review the importance of and methods for implementing a risk aware culture in any organization
• Reviewing why risk is not the preserve of a select few, but of all members of an organization
• Understanding applied methods in implementing a risk aware culture in an organization
• Understanding why internal control processes and implementation are essential in creating a risk aware culture
• Reviewing the functions and role of effective internal audit within the organization

Risk Based Decision Making (RBDM)

• The history of Risk Based Decision Making and its application in managing a company to best practice
• Review and application of the RBDM model
• The importance of RBDM in corporate development and in communication
• Application of RBDM to fraud prevention within organizations