Front to Back Office: Trading Controls, Risk Measurement and Modelling (CLASSROOM) - FTBOE
Course Schedule
| Date |
Time |
Location |
Price* |
Registration Deadline** |
*Prices do not include VAT, GST, or any other local taxes. All applicable taxes will be added to the invoice.
**Please register by the deadline to help us ensure sufficient attendance and avoid postponing the course.
Course Summary
This fascinating and interactive two-day workshop will give delegates a thorough understanding of best practice controls to be applied in commodity trading activities. It also offers in-depth coverage of systems requirements, credit risk management best practices, risk and performance measurement, and a strong focus on capital adequacy issues. Subject areas covered include recent developments in regulatory and legal compliance, and ethics.
Through interactive group case studies, delegates will analyze examples of control inadequacies leading to:
- Expensive trading mistakes
- Liquidity crises
- Market manipulation
- Misuse of leverage
Who Should Attend?
Class delegates include everyone from support staff to management from trading, risk management, operations, accounting, credit, and contracts groups. This workshop is perfect for those concerned with "front office", "mid-office", and "back office" functions for international and domestic energy commodity companies (crude oil, petroleum products, natural gas, electricity and coal) and other commodities (grains, metals, etc.).
Course Content
- Key types of risk (faced by management and the trading room)
- Details of recent spectacular failures
- Roles and responsibilities
- Trading controls for key risk categories
- Market risk
- Operations/operational risk
- Credit risk
- Liquidity risk
- Legal/compliance/regulatory risks
- Systemic risk
- Reputation risk
- Credit risk management and controls
- Calculating credit exposure
- Portfolio credit risk measurement
- Forward-looking credit models
- Determining credit thresholds
- Key issues with credit and collateral annexes
- Market price risk management and controls
- Foundations for risk measures
- Risk modeling issues
- Price volatility issues
- Application and strengths/weaknesses of value-at-risk
- Other uses of value-at-risk
- Stress Testing
- Types of stress testing
- Stress testing versus “at risk” measures
- Determining adequate capital
- Key measures of capital adequacy
- Cash-flow-at-risk
- Impact of margin (collateral) on working capital
- Capital adequacy framework
- Risk adjusted performance measurement
- Risk management implementation
- Determining risk tolerance
- Developing risk management policy
- Risk systems
- Regulation of trading and market manipulation
- Overview of regulatory organizations
- Market manipulation defined
- Overview of key regulations in US and Europe including Dodd-Frank Act, Sarbanes-Oxley, EMIR, REMIT and MAR
- Ethics
- Definitions
- Shades of gray
- Organizational perceptions
- Ethics in energy trading
