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This 8-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 and senior relationship managers in private banks
  • Covered persons under Private Banking Code of Conduct

Course Objectives

  • Understand the impact of financial market dislocations and volatility on investments
  • Apply the best practices to manage investments and navigate market turbulence
  • Ability to use common strategies to manage client portfolio in scenarios of extreme market volatility
  • Adopt best practices of reducing excessive exposure, reducing leverage and financing when growth prospects become less certain
  • Recommend decisions to cut losses and switch into safer and more defensive investments where appropriate
  • Client management during market dislocations
  • Recognise indicators of impending financial crises and market bubbles
  • Learning the lessons learnt from previous financial crisis

Course Outline

What is Market Turbulence?

  • What is market turbulence?
  • Impacts on securities/products
  • Benefits of hedging tail risks
  • Different types of market turbulence

Best Practices to Manage Market Turbulence

Active Diversification

  • Tools for active diversification
  • High quality government bonds
  • Gold
  • Low beta equity
  • Hedge funds
  • Tail risk ETFs

Hedging Equity Portfolio in Market Turbulence

  • Put options
  • FX options
  • Credit strategies
  • VIX Futures
  • ETNs on VIX
  • Variance swaps

Hedging Bonds in Market Turbulence

  • Reduce duration by swapping bonds
  • Duration-hedging strategy
  • VIX

Hedging Currency Risk in Market Turbulence

  • 4 dimensions of managing currency risk
  • Common FX hedging instruments

Portfolio Hedging Process

Leverage/Financing in Market Turbulence

  • Leverage/financing
  • Adjusting leverage

Cutting Losses and Switching Investments

  • Cutting losses
  • Switching investments
  • Managing the hedge

Managing Clients During Market Turbulence

After the Storm

Lessons Learned from Past Crises

  • Fundamental indicators of impending crises
  • Market indicators of impending crises
  • Lessons learned from previous crises
  • A tail event plan before the tail event
  • Summary

Assessment - MCQ

About IBF Certification

This course addresses the following Technical Skills and Competencies (TSCs) and Proficiency Level (PL):

  • Industry Products: Private Banking and Wealth Management (Level 3)
  • Market Specialisation (Level 4)

Participants are encouraged to access the IBF MySkills Portfolio to track their training progress and skills acquisition against the Skills Framework for Financial Services. You can apply for IBF Certification after fulfilling the required number of Technical Skills and Competencies (TSCs) for the selected job role.

Find out more about IBF certification and the application process on