The program combines the disciplines of identifying, through a combination of healthy curiosity and commercial skepticism, the key risks which underpin the full range of transactions underwritten by investment and international banks today.
The program enables participants to consider the different types of risk arising from a full range of transactions – loan underwriting, interest rate risk management, structured notes, exotic derivatives, debt and equity capital markets, and global trade finance.
The program addresses the following key subjects:
- Leveraged Transactions: A review of aggressive use of recapitalization strategies in leveraged deals today,
- Credit and Market Risk in Derivatives: How credit risk arises in interest rate risk management products and the right and the wrong way to control these,
- Special Purchase Vehicle (SPVs): Deconstruction and identification of inappropriate use of SPVs and securitization techniques,
- Off-Balance Sheet Techniques for Increasing Leverage: Use of leverage in structured notes products and determination of appropriateness thereof,
- Regulatory, Tax and Accounting Arbitrage: Inappropriate use of structured products for regulatory, tax, and accounting arbitrage
- Income Statement and Balance Sheet Manipulation Techniques: Use of structured products in general, and options in particular, as a vehicle for boosting revenues and camouflaging losses.
Using a wide range of practical case examples taken from both domestic and international capital markets, the program takes a holistic approach to risk management today, focusing on the identification and classification of the full range of risks confronted by bank executives: credit, market, operational, legal and compliance, and reputational and suitability.
Each of the cases challenges participants – once such risks have been identified and classified – to develop risk controlling strategies that protect the financial, regulatory, and reputational capital of the bank.