Capital Markets Crisis Management Initiatives (CAMFIN-CMI)
SHOCKS, LESSONS AND RESPONSIBLE MANAGEMENT
During the financial crisis, many banks and their clients suffered irrecoverable financial losses due to weak corporate governance and over-confidence in their ability to manage risk. The collapse of Lehmann Brothers, the credit crunch and the ongoing euro zone sovereign debt crisis has prompted shareholders and regulators to require financial institutions to adopt prudence and implement new risk measures to safeguard against financial shocks.
In order to efficiently implement these reforms and their objectives, bankers will have to dispose of a sound understanding of the causes of the recent financial crisis as well as of a deeper risk-consciousness in handling financial instruments and hedging portfolios.
IFBL (now House of Training) and its long-term partner ICMA, Luxembourg region, have designed a high-level residential seminar with the purpose of sharpening the awareness for potential pitfalls.The focus will be put on interactivity and group discussions.
Structure and contents
The training consists of 4-day seminar covering the following topics:
- Welcome and presentation of the programme
- Explaining the subprime mortgage crisis – What went wrong?
- (Mis)understanding the risks of a financial product
- Monetary - LIBOR, a liquid and trustful reference?
- Liquidity trap - squeezing the future market; the ‘flight to quality’ effect
- ETF’s built on futures - the bumpy curve of forward contracts
- Sadly-famous fraud cases
- Structured Products
- The maliciousness of volatility, correlation and dividends in pricing process
- Credit spreads: opportunistic funding, a win-lose situation?
- Impact of shorter economic cycles on investment advisor
- The greediness of market participants
- Correlation between low rates and risk appetite?
- Why financial products are often bought at the wrong moment in time ?
- Lessons and how banks have addressed weakness in business practice
- Information session regarding the final group assessment
- Presentation of the case study
- Selection of the teams
- Assessment preparation
- Group assessment
Audience and objectives
The seminar appeals to traders as well as to client advisors having a few years of experience in portfolio management. Internal auditors and risk managers are welcome as well.
Participants are required to have a sound knowledge of financial products and at least a basic understanding of risk management (VaR…).
This training programme is only available in English.
The seminar takes places in the building of the Chamber of Commerce / House of Training.