In the period immediately following the financial crisis, many investments products and derivative contracts perceived as being responsible for much of the pain experienced during the downturn fell out of favor almost universally. However, many of these once-dormant instruments and trading strategies are being revived in the post-crisis period, and financial engineering is once again producing alternative structures and positions with new risk/return profiles. Internal audit, compliance and risk management are being challenged to keep up with these developments to ensure that the proper investment and hedging processes and controls are in place to prevent another financial debacle.
This three-day seminar will provide the necessary insights to effectively evaluate the instruments, contracts and trading strategies employed by financial professionals as well as the front/middle/back office processes necessary to execute optimal investment and hedging positions. A broad variety of fixed income, equity, and alternative investments will be described, and examples of common trading and hedging strategies will be deconstructed. The regulatory and accounting implications of complex securities and hedge effectiveness testing will be presented to explain the impact that these factors have on implementing trades.
Industry-specific case studies related to both investments and derivatives will be evaluated to illustrate the potential for risk at both the institutional and systemic level. Throughout the course, specific audit approaches and test steps will be presented to ensure that delegates are developing stronger tools to evaluate the controls and processes necessary to effectively utilize a wide variety of investment instruments and derivative contracts.