Risk Management - Market Risk for Banks

In today’s dynamic financial environment, banks are increasingly exposed to fluctuations in interest rates, exchange rates, equity prices, and commodity values—collectively known as market risks. Effective market risk management is essential to safeguard a bank’s financial stability, ensure regulatory compliance, and maintain investor confidence. This course provides banking professionals with the foundational knowledge and practical tools to identify, measure, monitor, and manage market risk. Participants will gain insights into key risk metrics, regulatory requirements, and will gain a global overview of the main mitigation strategies, preparing them to make informed decisions in a volatile market landscape and to align with regulatory expectations.

By the end of this course, participants will be able to:

• Understand market risk: Identify and define the main types of market risk (interest rate, currency, equity, and commodity risks) and their impact on banking operations

• Measure market risk: Learn quantitative tools such as Value at Risk (VaR), stress testing, and scenario analysis to assess market risk exposure

• Understand the main approaches for market risk mitigation: Explore strategies to hedge or reduce market risk using financial instruments like derivatives

• Explore the regulatory guidelines and techniques for the main market risk related reports: (e.g., IRRBB, CSRBB, Basel III/IV) and their implications for capital and risk management

• Introduction to Market Risk
• Overview on Risk Measurement Techniques
• Risk Mitigation Techniques Deep dive on IRRBB (Interest rate risk on the Banking Book)
• Capital Requirement related to Market Risk: deep dive on FRTB (Fundamental Review of the Trading Book)
• Governance around Market Risk

Banking professionals seeking an advanced risk management certification with 5 years + of experience in the financial industry.

For this training course, an optional exam is available. In case of interest, candidates can choose a date from the list of proposed examination sessions. Registration for the exam must be made at least five days before the chosen exam date. The exam is subject to a registration fee.

The examination consists of true/false and multiple-choice questions. To pass the exam, a candidate must achieve a score of at least 50% of the total points on the exam.

This module is part of the Risk Management Certification. To obtain their certificate, candidates must complete 11 days of training in Risk Management and pass the exam for each course. 

More details here: Professional Risk Management Certification