CERTIFIED RISK BASED AUDIT
FOR TRADING ENVIRONMENTS
OVERVIEW
Causal Capital has been successfully delivering Risk Based Audit masterclasses across the Gulf for several years now and many of the auditors we work with ask about how to apply a Risk Based Audit to a trading environment front to back.
Additionally, new central bank compliance requirements (including but not limited to Basel III, ICAAP Stress Testing, Asset Liability Management, AML Control) for the trading book require specific interest for auditors to clamp down on miss-selling. This has made treasury departments and trading floors prime targets for regulatory enforcement.
WHO SHOULD ATTEND
Auditors, compliance and risk staff wishing to access how a trading unit identify and respond to risk.
KEY LEARNING POINTS
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Develop an audit plan for the entire trading environment, taking in the following departments: Sales, Dealing, Market Risk, Counterparty Risk, Middle Office, Trading Platform Management, Back Office, Netting and Collateral Unit, Settlement, Finance and Product Design.
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Develop a contextual map that will help you audit these areas of a trading environment, whether you are a bank, investment fund or large treasury unit.
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Address key risks: Rouge Trading, Malpractice, Fraud, Unethical Selling, Instrument Design Flaws, Market Risk Cover and change of risk appetite.
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Learn how to identify sources of risk, best practices for control assessment and much more.
This program is worth 40 CPE credits by field of study:
Audit:
Finance:
Statistics:
Business Management & Org:
Mathematics:
12 CPE credits
10 CPE credits
8 CPE credits
6 CPE credits
4 CPE credits
This course is certified by:
*LSBF certification is only applicable when both Part I & Part II modules are completed.
AGENDA
SESSION 1
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Risk Based Audit Framework
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Trading Environment Risk Taxonomy
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What is Minimum Practice
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Rules & Regulation Impacting Traders
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Coherently Measuring Risk
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Risk Maturity in Trading Environments
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Case Studies where Treasury Units
are Falling -
Planning to Audit Treasury
SESSION 2
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Financial Instruments Part I
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Deal Valuation
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Measuring Market Risk
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Measuring Counterparty Risk
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DV01, PV01 and ALM
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Stress Testing
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New Trends in Risk Reporting
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Financial Instruments Part II
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Treasury Accounting & IFRS
SESSION 3
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Establish Context for a Treasury Audit
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Mapping for Treasury
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Develop a Risk Registry Front Office
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Develop a Risk Registry Back Office
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Ethical Issues in the Front Office
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Assessing Risk Appetite
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Integrated Risk Reporting
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ISDA and Contracts Deep Dive
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Sources of IT / Cyber Risk in Trading
SESSION 4
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Monte Carlo and Measuring Trading Risk
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Types of Trading Controls
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Assessing Controls Front to Back
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Assessing Trading Culture
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Case Study on Trading Control Failure
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Case Study on Testing Adherence to Risk
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Case Study on Stress Test Coverage
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Review Risk Reports in line with Audit
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Sample Audit Report
SESSION 5
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Audit Modelling Sysytems
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What to Sample in a Trading Audit
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Single, Dual and Multi Factor Test
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Type Errors and Audit False Positives
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Testing for Trader Performance
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Key Risk Indicators & Continuous Audit
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Deep Learning Systems & Data Mining
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Housing Audit Data
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Test, Q&A & Support
QUICK OVERVIEW
A complete run through of this exciting masterclass
INDUSTRY EXPERT
Mr. Rahul Sil
Mr Rahul Sil is a quantitative risk manager who has risk managed linear and non-linear products across both Markets and Treasury functions. He has a proven track record in identifying, quantifying monitoring and mitigating complex Market and Counterparty Credit risks.
Rahul has a deep understanding of Market and Liquidity risks in Asia, involvement in stress testing and also developing hedging strategies for FI, FX/FX options, Prime Services, Equity Derivatives, Precious Metals and Group Treasury businesses for large and small Asia companies.
Detailed experience in financial and structured trade modelling • Deep understanding of trading environment front to back • Gobal leader in Market Risk for Exotic & Non-Linear Products • Extensive exposure to emerging markets • Build models and risk framework from the ground up • Front Office Risk Management Experience • Trading Policy Capabilities
BROCHURE REQUEST
CHAT WITH YOUR ADVISOR:
MLADENKA VUCHKOVA RIYADH
Professional Development Advisor
Mladenka@causalcapital.org +44 20 7097 1580
NENAD SPASOVSKI MUSCAT
Professional Development Advisor
Nenad@causalcapital.org +44 20 3575 1034
