This 7-hour course aims to equip private bankers with the right risk management tools and strategies to better manage clients’ investment portfolio in the events of market dislocation and volatility.
Target Audience
- Relationship Managers & Senior Relationship Managers in Private Banking
- Covered persons under Private Banking Code of Conduct
Recommended for:
- Private Banking & Wealth Management
Course Objectives
- Understand the impact of financial market dislocations and volatility on investments
- Apply the best practices to manage investments and navigate market turbulence
- Define key lessons from previous financial crisis, market volatility & VUCA related events
- Improve performance as either an investor/trader, relationship manager or key market player
Course Outline
Part 1: Market Turbulence
- What is market turbulence?
- Impacts on securities/products
- Benefits of hedging tail risks
- Different types of market turbulence
- Recognizing cycles
- Investment clock (risk premia), volatility & VUCA related events
- Tech talk
- Financial market theory evolution, tail risk, socio-political trends & liquidity
- Market states
- Trends, volatility signature & crisis alpha
- Group exercise
Part 2: Event Risks
- Types of event risk
- Black Swan
- Grey Rhinos
- VUCA
- How do these event risks impact markets and client portfolios?
- Case-study analysis
- Recent market activities and multiple future scenarios
- Group exercise
- Discuss and share real-time VUCA implications on markets, strategies and client relationship management
Part 3: Triad Strategy
- Resilience “Market & Mind” approach
- Markets: In terms of an “all-weather” investment process, with active market timing and risk management overlays
- Mind: A greater awareness, reduced behavioural bias and improved stress response management (SRM)
- Divergent thinking
- Market reality of probabilities, not certainties
- Avoiding linear, one-way bets, while hedging outlier black- or white-tail risks
- Scenario-planning
- Multiple scenario planning
- Learning from past anomalies
- History doesn’t repeat, but often rhymes