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Managing Operational Risk in Foreign Exchange Activities 2 part series

Stanley Epstein
Jun 26, 2024 , 01 : 00 PM EST
120 Minutes |  4 Days Left
Live Webinar
  

Description

Managing Operational Risk in Foreign Exchange Activities Part 1- Basic Principles June 26 2024 @01 PM EST


The foreign exchange market serves as the primary mechanism for making payments across borders, transferring funds, and determining exchange rates between different national currencies.

In the past decade, we have witnessed the broadening and the massive expansion of the foreign exchange market. While in the past, commercial banks dominated the market; participants today also include commercial as well as 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, money transfer firms and other participants.

The effective management of risk is an important aspect of all business activities. In Foreign Exchange operations, risk management is even more critical because many of the day-to-day operational risks are not well understood. Not understanding one’s “enemy” is a sure prescription for disaster.

This course represents a practical approach to explaining the unique risks in foreign exchange operations, as well as how to implement an effective operational risk management system for these transactions.

In part-one of this course, we examine the basic principles surrounding the use and operational aspects of Foreign Exchange – specifically we are going examine how funds move around the globe, how transactions are settled and the major operational risks in this market and the steps that have been taken to lessen these.

Subjects that we cover include:

  • How foreign exchange works,
  • Foreign exchange terminology,
  • Correspondent banking,
  • SWIFT,
  • The foreign exchange settlement process,
  • Settlement risk and exposures,
  • Continuous Linked Settlement.

In part-two we cover best practices in the management of operational risk in foreign exchange activities together with a case study of a recent series of events at a major global bank that clearly illustrate all that we have covered in parts 1 and 2 of this course.

On completing both parts of the course, attendees will be in a position to implement the standards of best practice in their own work environment.

This webinar benefits the following agencies-

This webinar will be beneficial for a wide range of firms, businesses, and organizations that engage in foreign exchange transactions as part of their operations. Here are some examples:

  • Financial Institutions: Banks, investment banks, credit unions, and other financial institutions engage heavily in foreign exchange activities as part of their trading, treasury, and client services operations.
  • Multinational Corporations: Companies with global operations often deal with foreign exchange risk when conducting business across different currencies. Understanding and managing operational risks in FX activities is crucial for their financial stability.
  • Exporters and Importers: Businesses involved in international trade face foreign exchange risk due to fluctuations in currency values. Managing operational risk in FX activities can help mitigate potential losses and ensure smoother transactions.
  • Hedge Funds and Asset Managers: Funds that invest in international markets or engage in currency trading strategies need to manage operational risks associated with their FX activities to protect investor capital and maintain operational efficiency.
  • Insurance Companies: Insurers often have investments and liabilities denominated in foreign currencies. Managing operational risk in FX activities is important for ensuring solvency and meeting financial obligations.
  • Export Credit Agencies: Organizations that provide export financing and insurance services may need to manage operational risk in FX activities to protect against currency-related losses.
  • Government Agencies: Central banks, finance ministries, and other government entities involved in monetary policy and international finance may benefit from understanding and managing operational risks in FX activities.
  • Nonprofit Organizations: NGOs and other nonprofit organizations that operate internationally may face foreign exchange risk when managing budgets and funding projects. Understanding operational risk in FX activities can help them manage financial resources more effectively.
  • Consulting Firms: Firms that provide advisory services in risk management, finance, and strategy can benefit from offering expertise in managing operational risk in FX activities to their clients.

Who should attend?

This webinar typically will be relevant to a variety of professionals involved in foreign exchange (FX) operations and risk management; specifically:

  • Risk Managers: Those responsible for identifying, assessing, and mitigating operational risks within FX activities.
  • Compliance Officers: Professionals ensuring that FX activities adhere to regulatory requirements and internal policies.
  • FX Traders: Individuals executing trades in foreign exchange markets who need to understand the operational risks involved.
  • Treasury Managers: Those overseeing treasury functions within organizations, including FX risk management.
  • Internal Auditors: Professionals tasked with evaluating the effectiveness of internal controls and risk management practices related to FX activities.
  • Financial Controllers: Individuals responsible for financial reporting and ensuring the accuracy of FX-related data.
  • Technology and Operations Professionals: Those involved in developing and maintaining systems and processes related to FX trading and risk management.
  • Consultants and Advisors: Professionals providing advice and guidance on FX risk management to organizations.
  • Academics and Students: Individuals studying or researching topics related to FX markets, risk management, or finance in general.
  • Anyone Interested in FX Markets: Even individuals with a general interest in financial markets and risk management could find value in understanding how operational risk affects foreign exchange activities.

 

Managing Operational Risk in Foreign Exchange Activities Part 2 - Best Practice & Illustrative Case Study July 17, 2024 @01 PM EST

The ability to manage all risks in a business environment is critical. This is perhaps even more important in the volatile world of international trade and investment in one of its most important facets – the foreign exchange market.

In part one of this course, we covered the basic principles and operational features of foreign exchange operations.

In part two we take a deep dive into best practices for the management of foreign exchange operational risk. This course offers a range of practices that will help mitigate some of the operational risks that are specific to the foreign exchange industry. Such best practice may help reduce operational costs because of the fact that less time and effort is needed to investigate and address operational problems.

To round off part two of the course we will examine a detailed case study relating to a recent series of events at a major global bank that will clearly serve to illustrate all that we have covered in parts 1 and 2 of this course.

Subjects that we cover in part two include:

  • A detailed look at the foreign exchange trade processing cycle,
  • Standards of best practice aimed at reducing foreign exchange operational risks,
  • Seven critical aspects of the foreign exchange processing cycle (information flow, segregation of duties, staff understanding, operational risk, product development, product sign-off, control system access and audit and risk control).
  • Illustrative case study.
  • On completing both parts of the course, participants will easily be able to implement these standards of best practice in their own working environment

This webinar benefits the following agencies-

This webinar will be beneficial for a wide range of firms, businesses, and organizations that engage in foreign exchange transactions as part of their operations. Here are some examples:

  • Financial Institutions: Banks, investment banks, credit unions, and other financial institutions engage heavily in foreign exchange activities as part of their trading, treasury, and client services operations.
  • Multinational Corporations: Companies with global operations often deal with foreign exchange risk when conducting business across different currencies. Understanding and managing operational risks in FX activities is crucial for their financial stability.
  • Exporters and Importers: Businesses involved in international trade face foreign exchange risk due to fluctuations in currency values. Managing operational risk in FX activities can help mitigate potential losses and ensure smoother transactions.
  • Hedge Funds and Asset Managers: Funds that invest in international markets or engage in currency trading strategies need to manage operational risks associated with their FX activities to protect investor capital and maintain operational efficiency.
  • Insurance Companies: Insurers often have investments and liabilities denominated in foreign currencies. Managing operational risk in FX activities is important for ensuring solvency and meeting financial obligations.
  • Export Credit Agencies: Organizations that provide export financing and insurance services may need to manage operational risk in FX activities to protect against currency-related losses.
  • Government Agencies: Central banks, finance ministries, and other government entities involved in monetary policy and international finance may benefit from understanding and managing operational risks in FX activities.
  • Nonprofit Organizations: NGOs and other nonprofit organizations that operate internationally may face foreign exchange risk when managing budgets and funding projects. Understanding operational risk in FX activities can help them manage financial resources more effectively.
  • Consulting Firms: Firms that provide advisory services in risk management, finance, and strategy can benefit from offering expertise in managing operational risk in FX activities to their clients.

Who should attend?

This webinar will typically be relevant to a variety of professionals involved in foreign exchange (FX) operations and risk management, specifically:

  • Risk Managers: Those responsible for identifying, assessing, and mitigating operational risks within FX activities.
  • Compliance Officers: Professionals ensuring that FX activities adhere to regulatory requirements and internal policies.
  • FX Traders: Individuals executing trades in foreign exchange markets who need to understand the operational risks involved.
  • Treasury Managers: Those overseeing treasury functions within organizations, including FX risk management.
  • Internal Auditors: Professionals tasked with evaluating the effectiveness of internal controls and risk management practices related to FX activities.
  • Financial Controllers: Individuals responsible for financial reporting and ensuring the accuracy of FX-related data.
  • Technology and Operations Professionals: Those involved in developing and maintaining systems and processes related to FX trading and risk management.
  • Consultants and Advisors: Professionals providing advice and guidance on FX risk management to organizations.
  • Academics and Students: Individuals studying or researching topics related to FX markets, risk management, or finance in general.
  • Anyone Interested in FX Markets: Even individuals with a general interest in financial markets and risk management could find value in understanding how operational risk affects foreign exchange activities

Training Options

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Live Session
 $299  

Recording
 $399  

Digital Download
 $499  

Transcript (PDF)
 $399  

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