Certificate in Treasury - Financial risk analysis and management

The focus of this unit is financial risk analysis and management, which are key areas of treasury responsibility. Treasury decisions and transactions can themselves carry risk for the organisation. It is essential that treasury professionals understand the principles of risk management and the various tools and techniques that can be used to help manage risk.

The first part of the unit provided an overview of these principles and of the main areas of risk that can arise in treasury. The learner explored risk management frameworks and a range of tools and techniques to support risk analysis.

The unit then focused on the use of different hedging instruments and techniques used specifically in the management of treasury related risks.

Finally, the unit concluded by examining the practical considerations and application of methods of risk management and reporting in treasury. A range of interest rate and foreign exchange risk management tools and techniques are also examined.