Financial Institutions Coaching Practice
This program has been independently accredited and certified by CPD
Eugene O’Connell, Financial Institutions Coaching Practice
Leading authority in foreign exchange risks management with more than 15 years of experience managing foreign exchange risks and has coached over 5,000 finance professionals globally
Former Head of FX Trading and Proprietary Risk at Tokai Bank Europe where he was based in London and Europe, running portfolios in excess of $2 billion and worked closely with regulatory authorities in 6 European countries
Clients consulted include National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar
Eugene is a leading authority in foreign exchange risk management with more than 15 years of experience managing foreign exchange risks and has coached over 5,000 finance professionals globally.
Prior to coaching, Eugene served at middle and senior management levels of many international banks for more than 15 years. He ran proprietary portfolios in Fixed Income, Foreign Exchange, swaps and other derivative instruments. He sat on Risk Management committees in both London and Tokyo before becoming a learning and development professional. He now uses his extensive experience to deliver highly effective finance and leadership coaching to a wide range of businesses.
Some of his clients include national and international companies such as National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar and many more.
Throughout his working years, Eugene has dedicated his time to training, coaching, and mentoring leaders. Employing many techniques of his profession where appropriate, he actively listens to his clients and helps them find the path which best helps them attain the organizational and personal goals they need to achieve.
This course has been independently certified as conforming to universally accepted CPD guidelines. On average, this executive program contributes 16 hours towards your CPD.
Designed for CFOs, treasurers and corporate finance professionals, this comprehensive 2-day program is designed to provide you with effective techniques and proven strategies to effectively manage and measure foreign exchange risks to protect your company’s profitability against uncertainties.
Led by Eugene O’Connell, former Head of FX Trading and Proprietary Risk and leading authority who has consulted major companies including National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar, this program will provide you with strategic perspectives and in-depth understanding of hedging principles, hedging instruments and practical tools available to reduce your foreign currency exposure.
Utilizing the latest hedging techniques and instruments available from options, forward, swaps, and futures, this program will teach you how to use the right derivative instrument to master effective hedging techniques, tools and strategies and gain deep understanding of the advantages and limitations of each hedging instrument. In addition, you will learn to design an effective risk management framework for successful implementation and execution of your organization's risk mitigation strategies to create a match between hedges and foreign exchange risks.
Packed with real-life case studies and industry best practices, you will gain practical skills, proven techniques and in-depth knowledge in managing and measuring foreign exchange risks to protect your company against FX volatility.
Programs, dates and locations are subject to change. In accordance with Clariden Global policy, we do not discriminate against any person on the basis of race, color, sex, religion, age, national or disability in admission to our programs.
Volatilities in the foreign exchange markets have increased as financial markets grapple with unexpected political and economic developments globally. It is vital for CFOs, treasurers and finance managers to know how to effectively manage foreign exchange risks and executive appropriate risk management strategies to sustain growth and profitability. However, most companies are still facing difficulties in utilizing effective hedging techniques, instruments and strategies to protect their organization from foreign exchange risks.
The problem here is that many companies face difficulties in understanding and addressing transaction, economic and translation risks. In addition, they are ineffective in deriving a strategic risk management framework to effectively measure, respond and mitigate foreign exchange risks. Many also highlighted the poor hedging strategies and utilization of hedging instruments.
Without in-depth knowledge, effective frameworks and techniques to critically analyze, measure and strategize an effective foreign exchange risk management plan, companies may face increased foreign exchange risks, overpaying, poor foresight and lost of investment and business profits.
Designed for CFOs, treasurers and corporate finance professionals, this comprehensive 2-day program is designed to provide you with effective techniques and powerful strategies to effectively manage foreign exchange risks and improve your organization’s profitability.
Led by Eugene O’Connell, former Head of FX Trading and Proprietary Risk and leading authority who has consulted major companies including National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar, this program will provide you with strategic perspectives and in-depth understanding of different types of foreign exchange risks involved such as transaction, economic and translation risks, and how to effectively identify, assess and manage them. In addition, you will learn to master effective hedging techniques, instruments and strategies to accurately measure, respond and mitigate according to the type of foreign exchange risks involved respectively and gain clear understanding of the advantages and limitations of each hedging instrument so as to utilize them more effectively. Furthermore, you will learn to derive an effective risk management framework for successful implementation and execution of your risk mitigation strategies, as well as industry best practices to effectively hedge against foreign exchange risks.
Packed with real-life case studies and interactive discussion sessions, you will leave this program with practical skills, powerful techniques and in-depth knowledge to safeguard your organization from foreign exchange risks and drive better profitability and business sustainability.
What You Can Expect
By the end of this program, participants will be able to:
Gain clear, in-depth understanding of the different types of foreign exchange risks
Utilize effective strategies to address transaction, economic and translation risks
Master effective hedging techniques to accurately measure, respond and mitigate risks
Understand the advantages and limitations of each hedging instrument
Derive an effective risk management framework
Implement reliable risk response and mitigation strategies to proactively safeguard against foreign exchange risks
Learn industry best practices in hedging against foreign exchange risks
Who Will Benefit Most
This program is designed for, but not limited to, CFOs, Finance Directors, Financial Controllers, Corporate Treasurers, Risk Analysts, Traders, Risk Managers, Finance Managers, Treasury Managers, Accountants, Auditors, as well as all professionals who are involved in managing foreign exchange risks.
1. Types of foreign exchange risk
1.1 Transaction risk
The size of the transaction, is it material?
The hedge period, the time period before the expected cash flow occurs
Can we anticipate the volatility of the exchange rates during the hedge period?
1.2 Economic risk
Directly: If your firm's home currency strengthens then foreign competitors are able to gain sales at your expense because your products have become more expensive
Indirectly: Even if your home currency does not move with respect to your customer's currency you may still lose a competitive position
1.3 Translation risk
The issues are discussed with case studies:
It is the translation not the conversion of real money from one currency to another
Severe distortion of reported performance of overseas subsidiaries when there has been a significant foreign exchange movement
Should companies hedge translation exposure?
2. Hedging transaction risk - the internal techniques
2.1 Invoice in home currency
Internal techniques to manage/reduce forex exposure
Paying for all imports in your home currency
Who owns the exchange-rate risk?
Viability for companies in monopoly positions vs. those in a competitive environment
2.2 Leading and Lagging - basic hedging
Why importers delay payment
Appropriate means of delaying payment and consequences
How to obtain payment immediately without conflict?
The problem lies in guessing which way the exchange rate will move
Matching up receipts and payments in the same foreign currency due at the same time
Dealing with the unmatched portion of the total transactions
Setting up foreign currency bank accounts
Bilateral and multilateral netting and matching tools
Case study: Comparing Tabular and diagrammatical netting methods
2.4 Letting the market decide
Is the result "win some, lose some"?
Do gains and losses net off to leave a similar result to that if hedged?
Transaction cost savings vs. short-term risk
3. Hedging transaction risk - the external techniques
3.1 Forward contracts
How forward contracts work
How forward prices should be agreed upon
Understanding spot-forward parity
Relationship between the forward price and expected future spot price
3.2 Money market hedges
Locking in currency value in advance of a transaction
Creating certainty about how much a future transaction will cost
Ensuring the domestic company can lock in a price that it is willing and able to pay
Case study: Setting up a hedge from scratch
3.3 Futures contracts
How futures contracts work
Who can or should use them
What is basis risk?
Should you ignore or hedge this?
Case study: How corporates use Futures to hedge existing exposures
What are traded currency options?
What is the terminology and what does it mean?
When do you allow an option to either lapse or call?
Why use options rather than forward contracts or futures I the result is an asymmetric risk exposure?
Illustration: A typical pricing schedule for the US$/€ currency option on the Philadelphia exchange
3.5 Forex swaps
Access to capital markets, in which it may be impossible to borrow directly
The FX swap market and how swap rates are calculated
Why banks use forward swaps rather than outright forwards: hedging outright forward transactions
Understanding the sensitivity of FX swaps to changes in rates
“Historic rate” rollovers explained
Case study: Using FX swaps to facilitate an international construction project
3.6 Currency swaps
Purposes of Currency Swaps
Issues concerning exchange of principal in different currencies
The exchange of interest rates - the timing of these depends on the individual contract
Fixed for fixed or fixed for variable
Case study: Using currency swaps in conjunction with underlying bond exposures
CFOs Leadership :
Experience Clariden Discover how our leadership program has shaped the perspectives of CFOs across Asia
Venue: Hilton London Bankside, UK Date: 20 - 21 Jul 2017 Faculty: Eugene O’Connell Early Bird 1: £1,795 (by 25 May 2017) Early Bird 2: £1,895 (by 22 June 2017) Regular Fee: £1,995 Group Discount: 2nd participant get 10%, or register 3 participants and 4th participant get a complimentary seat
(1 discount scheme applies)