Overview
Market risk is probably the most significant type of risk that banks, asset management firms and investors face, but all corporations are exposed to market risk to some degree which can be minor or significant.
Market risk can be very complex in nature and be one of the most difficult types of risk to manage. This presentation provides for a thorough understanding of market risk in terms of its nature, its types and the thought process for addressing it. It also provides for a review of market risk in the context of the manner in which traders, proprietary positioners, treasurers, investors and investment managers are exposed to market risk and how each must deal with the market risk for which they are responsible. In addition, it also addresses the roles of individuals with market risk management oversight responsibility.
It focuses on the management considerations of each of these parties and the market risk management thought process they must use to manage market risk relative to their roles and responsibilities. It offers a particularly detailed review of market risk considerations in the context of investments. It further addresses market risk in terms of derivative usage, hedging and the general management of market risk as well as a detailed examination of leverage.
Why you should Attend
To fully understand market risk and the various contexts in which it exists as well as to examine market risk management practices.
Market risk management in macro terms with respect to those assets with defined market values is managing the risk/return associated with an asset which has the potential of experiencing price changes.
Individuals commissioned to take market risk or manage market risk must take into consideration the management objective governing their responsibilities, the markets to which they are exposed, the method of market risk being taken, the expected time horizon for the subject market risk and the management principles that should guide their market risk management judgment.
Market risk can take many forms given the market arena in which the market risk is present. Understanding the nature of the market risk and an acceptable risk/return relative to the potential degree of market risk is critical to the market risk management thought process.
Areas Covered in the Session
Who Will Benefit
Speaker Profile
Robert Geary is the founder of Greenwich Risk Management Advisory Services “LLC” and services as the principal consultant on many of the firm’s consultancy mandates.
Market risk is probably the most significant type of risk that banks, asset management firms and investors face, but all corporations are exposed to market risk to some degree which can be minor or significant.
Market risk can be very complex in nature and be one of the most difficult types of risk to manage. This presentation provides for a thorough understanding of market risk in terms of its nature, its types and the thought process for addressing it. It also provides for a review of market risk in the context of the manner in which traders, proprietary positioners, treasurers, investors and investment managers are exposed to market risk and how each must deal with the market risk for which they are responsible. In addition, it also addresses the roles of individuals with market risk management oversight responsibility.
It focuses on the management considerations of each of these parties and the market risk management thought process they must use to manage market risk relative to their roles and responsibilities. It offers a particularly detailed review of market risk considerations in the context of investments. It further addresses market risk in terms of derivative usage, hedging and the general management of market risk as well as a detailed examination of leverage.
Why you should Attend
To fully understand market risk and the various contexts in which it exists as well as to examine market risk management practices.
Market risk management in macro terms with respect to those assets with defined market values is managing the risk/return associated with an asset which has the potential of experiencing price changes.
Individuals commissioned to take market risk or manage market risk must take into consideration the management objective governing their responsibilities, the markets to which they are exposed, the method of market risk being taken, the expected time horizon for the subject market risk and the management principles that should guide their market risk management judgment.
Market risk can take many forms given the market arena in which the market risk is present. Understanding the nature of the market risk and an acceptable risk/return relative to the potential degree of market risk is critical to the market risk management thought process.
Areas Covered in the Session
- Understanding the nature of market risk
- Absolute return perspective
- Relative return perspective
- Market arenas that contain market risk
- Interest rate
- Equity
- Currency
- Commodity
- Risk/return evaluation in perspective
- Degree of return potential vs risk potential
- Probability overlay
- Judgment applied
- Parties engaged in market risk taking and/or management
- Objectives
- Market focus
- Time horizon
- Nature of Exposures
- Considerations underpinning market risk
- Function of role
- Factors that govern management
- Market risk management
- Derivatives
- Leverage
- Hedging
- Methods for managing risk
Who Will Benefit
- Treasury management
- Investment management
- Investment managers
- Investors
- Managers of an investment management business
- Financial market trading
- Senior management of business that must address market risk
- Risk Management oversight within businesses that must address market risk
- Compliance oversight within businesses that must address market risk
- Auditing within businesses that must address market risk
- Regulatory oversight of businesses that must address market risk
- Educational programs at the University level
Speaker Profile
Robert Geary is the founder of Greenwich Risk Management Advisory Services “LLC” and services as the principal consultant on many of the firm’s consultancy mandates.
