Introduction to Risk and Derivatives


Overview
In this two-hour webcast, you will learn about economic risks facing enterprises today and how derivatives can be used as hedges to mitigate some of the risk.

The webcast begins with an overview of economic risk management, discussing the major sources of risk and how they affect the enterprises economic performance. It then covers the various approaches that can be utilized to reduce risks or provide protection against risks that cannot otherwise be mitigated, including the use of derivatives and other financial products that are available.Finally, the webcast covers the difference between hedging and speculation.

Objectives
Upon completion of this course, participants will be able to:
• Identify and isolate different types of economic enterprise risks.
• Differentiate between risks that can be managed in the short term and systematic risks that the enterprise cannot mitigate.
• Understand how to hedge against unfavorable economic outcomes.
• Understand different types of derivatives are available that can be applied to mitigate specific risks.
• Recognize when derivatives are being used for speculation rather than hedging.

Emphasis

  • Evaluating economic risks
  • Identifying management’s goals in mitigating risk.
  • Understanding the different types of derivatives that are used to mitigate risks.
  • Constructing an effective hedging program.
Who Will Benefit
Corporate accountants, treasury professionals, analysts, consultants, regulators, auditors, financial engineers and others who are involved in an enterprises risk management activities.

Prerequisite
A basic understanding of time value of money concepts and commonly-used derivatives for hedging purposes

Preparation
No advance preparation required

Level of Knowledge
Intermediate

CPE Credit
2 Hours

Delivery Method  
Group Internet Based

NASBA Field of Study
Accounting

Author
Charles Yager