Advanced Risk Management Training
An advanced risk management training curriculum helps a senior participant stay up-to-date with the latest tools and methodologies that professionals use to detect, assess and monitor risks implicit in corporate activities. This program also helps an attendee learn about recent changes in regulations and how they may affect an organization's activities.
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Purposes
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An advanced risk management training program instructs a senior corporate leader or a risk professional on the latest risk control and identification tools used in hedging (risk protection) processes. For example, a risk director at an investment bank may learn about new computation formulas for market risk assessment tools such as VaR (value at risk), Monte Carlo simulation and scenario testing. Alternatively, he may familiarize himself with statistical tools and computer algorithms used to build internal credit ranking models such as worksheets and credit verification procedures.
Method of Distribution
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A risk management training coordinator may provide courses via the web or on-site. To illustrate, the investment bank's risk manager who wants to learn about VaR may log onto a secure Web portal and select applicable courses or attend a university five-week training program on the subject. Alternatively, he may participate in a professional conference that the Global Association of Risk Professionals (GARP) sponsors or attend a training session that the bank organizes at its headquarters.
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Training Topic
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Advanced risk management training topics may vary, depending on regulatory requirements, staff skills, budget allocation and the company size. For instance, an advanced risk management course can instruct on how to incorporate in a firm's overall risk control policy handbook procedures and guidelines that the Occupational Safety and Health Administration (OSHA) requires. Alternatively, a training topic may relate to sophisticated risk-hedging tools, such as credit risk insurance coverage and credit default swaps (CDS), that a company can use to prevent significant losses in financial transactions.
Benefits
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An advanced risk monitoring curriculum benefits a participant and a sponsoring company. A senior risk director who holds a professional certification, such as a certified public accountant (CPA) or financial risk manager (FRM) designation, can attend courses to comply with minimum continuing education requirements that a state's board of accounting or GARP generally requires. A sponsoring company also may gain because a well-trained staff is more prone to establish adequate risk management procedures and policies.
Expert Insight
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A course moderator occasionally may find that a topic included in an advanced risk management program is unclear or complex. In these cases, he may hire a specialist to explain a difficult subject. For example, a program coordinator at an oil and gas company can bring in a former Federal Emergency Management Agency (FEMA) senior risk director to explain how the firm can incorporate disaster-preparedness policies and mechanisms in its corporate risk management policy handbook.
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References
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