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Managing Risks in Foreign Exchange Activities Training Course
This training course gives a solid foundation to all parties involved in foreign exchange activities whether at executive, marketing, audit or operational levels into how the actual trading processes work, what the risks are and how these can be mitigated by using clearly defined Standards of Best Practice.
Course Benefits
By the end of this course, you will:- Clearly understand each of the seven stages of foreign exchange trade and settlement, and fully comprehend how each phase is related to the larger process flow.
- Gain knowledge of the varied processes involved in each of the seven stages.
- Have a clear understanding of operational risk in the context of foreign exchange operations and how to use this knowledge to manage their own foreign exchange activities more effectively.
- Obtain a clear insight into practices that may mitigate some of the operational risks that are specific to the foreign exchange industry.
- Understand how acceptance and use of these practices may help reduce operational costs.
- Understand the key best practices that are used in the foreign exchange industry.
- Understand current developments in foreign exchange activities and practices and obtain a clear insight into future trends and directions.
Have a question? Email us at:
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or call us at: (+852) 2273-4393Course Agenda
Day OneSession 1
The Foreign Exchange Marketplace
We begin this course by setting the scene and examining nature and extent of the foreign exchange market.
- The size of the market
- Who the participants are (both key players and occasional users).
- How the market is developing and its past growth.
- How foreign exchange operates.
- We provide a range of examples that clearly illustrate the operation of foreign exchange markets in terms of the transactions, how they are processed and how they are settled.
- What does the jargon mean - we explore foreign exchange definitions.
- Foreign exchange settlements - Correspondent banking and Continuous Linked Settlement (CLS).
Operational Risk
In this session we explore the world of risk.
- What is risk?
- What are the different types of risks that effect foreign exchange operations?
- Why operational risk is 'special'
- How these risks effect the bank
We explain the basic Operational Risk Model in action, dealing with all the relevant components as they interact with one another
- The Model
- Managing operational risk
- Risk analysis
- Risk impact/frequency
Session 3
Foreign Exchange Best Practice
- What are best practices?
- We explore how using these practices may also help to reduce the level of risk in the foreign exchange market more generally. How can these practices help reduce operational costs?
- What are the major trends in the foreign exchange market today and how will they foreign exchange operational risk
- Management's role in effective risk mitigation.
- Why operational risk is 'special'.
In this session we the generic view of the foreign exchange process flow, form pre-trade preparation, trade capture, confirmation, netting, settlement, nostro reconciliation, and the accounting & financial control processes. This lays the foundation for a detailed examination of each of these processes, the activities that they entail and the risks and their mitigation.
Examples are given for each of the processes involved to give the delegate a clear understanding of the key operating and risk issues involved.
Day Two
Using Foreign Exchange Best Practice to Manage Risk
In today's four sessions we offer a collection of practices that will assist in mitigating some of the operational risks that are specific to the foreign exchange industry.
We examine each of the seven processes on the following basis:
- The individual process, what it is meant to achieve and now it operates (we cover in turn pre-trade preparation, trade capture, confirmation, netting, settlement, nostro reconciliation, and the accounting & financial control processes).
- What are the risks?
- The best practices used to mitigate these risks.
Session 1
Pre-trade preparation
Know your customer, Documentation requirements, Master netting agreements, Agreement on trading and operational practices.
Trade capture
Entering trades, Using Straight-Through-Processing, Use of real-time credit monitoring, Standing settlement instructions.
Session 2
Confirmation
Special requirements for confirming by non-secure means (structured or nonstandard trades, confirming by telephone), Controls electronic trading platforms, Verify expected settlement instructions, Netted transactions, Internal transactions - Block trades and split allocations, Third-party advices, Confirmation matching process, Exception processing and escalation procedures.
Netting
Online settlement netting systems, Bilateral net amounts, Cut-offs for netting, Consistent operational practices and documentation.
Session 3
Settlement
Real-time nostro balance projections, Electronic messages for expected receipts, Cancellation and amendment facilities, Payment failures, Thee settlement process and settlement exposure, Crisis situations outside your organization.
Nostro reconciliation
Nostro account reconciliation, Identify non-receipt of payments, Operational standards for nostro account users.
Session 4
Accounting & financial control processesGeneral Ledger reconciliation, Daily position and Profit & Loss reconciliation, Daily position valuation, Trade prices for Off-Market Rates.
General Best Practices for Managing Foreign Exchange Operations Risk
Segregation of duties, Business and operational roles, Understand operational risks, Procedures for introducing new products, new customer types, or new trading strategies, Control system access, Audit/risk control groups, Operational performance measures, Outsourcing & industry standards and best practices, Record keeping, Contingency plans.
Who should attend?
Operations and business staff at all levels involved in any aspect of foreign exchange. This will include staff from commercial banks, investment banks, foreign exchange dealers and brokerage companies, multinational corporations, money managers, commodity trading advisors, insurance companies, governments, central banks, pension and hedge funds, investment companies, brokers/dealers, and other participants in the interdealer market.
Have a question? Email us at:
or call us at: (+852) 2273-4393Why Ethan Hathaway training courses?
- Practical. Learn from experienced and active industry practitioners and what's being practiced by your peers.
- Applicable. Apply what you learn in your job and your career
- Specially designed courses by industry active experts for industry practitioners
- Quality Control. Each expert instructor is interviewed and vetted through our senior management and our 5-point instructor criteria.
- Valuable. Earn more revenue or save your organisation from monetary loss. You and your organisation will quickly earn back your investment on the course fee and more
- Enjoyable. Speakers who have a passion for their topic
- Clear. Turning complex concepts into easy to understand concepts
- Limited seats - each session is limited to between 18-25 seats
What do you receive from an Ethan Hathaway training course?
- You gain knowledge and skills that make you valuable to your company and your career
- Instruction by industry experts
- Course notes and reference package
- Daily lunch, snacks and refreshments
- Certificate of completion
- Meeting your industry peers
- Ask questions relevant to your job
Download the course brochure to learn more
Your course instructor
Richard Barr:
Richard holds a B.S. in International Business Administration from San Jose State University in California. His professional experience spans 19 years, 5 of which were spent with Wells Fargo Bank. Another 5 were spent honing his global banking skills, when Richard was intimately involved with International Trade Finance, Real Time Gross Settlement and Cross Border Banking. The past 9 years have been in the private and high-tech sectors providing high-level consulting services, business analysis, project management and training to a wide range of banking clientele across the globe. He has spent extensive time servicing a diversity of "financial institutional" clients, in South Africa, Poland, Sweden, Ireland, Netherlands, Greece, Bermuda, Malawi, United Kingdom and across North America. Clients that Richard and Citadel Advantage have dealt with such notable firms as AIB Bank, Eurobank, ABSA Bank, CitiBank, Swedbank, INDEbank, IBM, Montran and Fundtech, as well as many others. Richard has also filled the role of advisor to central banks on payment systems and technical payments issues. Furthermore, key staff from the Bank of England, South African Reserve Bank, Central Bank of Ireland and Bank of Portugal who have attended training sessions presented by Richard.
Dates & Locations & Fees
| Date | Location | Venue | Course Fee | Early Bird Fee | Register |
|---|
Early Birds May Save Up To 30%** Off the Regular Fee, download the brochure to learn more
Limited seats - Email us: for availability.
* Venue, dates, course fees, promotions, course content, course instructor are all subject to change
** Selected courses only
Can't find a session in a city near you?
If there's no session scheduled in a city near you, you have the following options:
- In-house training: If you have a group of 8 or more, consider having us run this course in-house for you
- Co-sponsored training: Between 5-7 people, consider a co-sponsored course - you agree to send this set number of people to the course if we run it in a city near you and Ethan Hathaway sells the remaining seats to other companies
- Distance learning: Less than 5 people, consider distance training format: live trainer presents over phone lines/web at pre-scheduled times (available only for select courses)
- Just tell us where you want the course: Let us know which city you'd like us to run this course in - we'll plan it if there's enough demand
Email us at: for more information regarding the above options.
Register for the course
You may book your place on the course by any of these methods:
- Online booking - simply click on the "Register Me" button next to the course date you wish to register and it will take you through our quick online registration procedure.
- Email us at: - please include your full contact details.
- Fax us the booking form (included in the brochure) to: +852 3014-0721
- Or call: +852 2273-4393 during normal office hours
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Learn more about this course
Inside the course information booklet you'll find:
- Detailed course agenda of what you'll learn
- Eligible discounts
- Our course quality guarantee
- Course expert biography
- Course venue details
- Cancellation & refund policies
- Course registration form
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