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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 Manager, Team Leader, Product Specialist, Investment Counsellor

Course Objectives

  • Understand the characteristics and causes of market turbulence
  • Ability to use various diversification and hedging strategies to manage clients’ portfolios in the events of extreme market volatility
  • Understand portfolio risk exposure in terms of factors
  • Understand ways to stress-test investment portfolios
  • Know the various indicators to warn of impending financial storm
  • Learn how to actively manage the hedges amidst the storm
  • Learn what to do after the storm
  • Learning the lessons learnt from the past financial crises

Course Outline

Part I: What is market Turbulence?

  • Defining Market Turbulence
  • Characteristics of Market Turbulence
  • Causes of Market Turbulence
  • Observations from Past Crises

Part II: Before the Storm

  • The Need to Hedge Tail Risk
  • “Always On” or “Just-in-Time”?
  • Fundamental Indicators of Impending Crisis
  • Market-Based Indicators of Impending Crisis

Part III: Tail Risk Hedging Plan

  • Tail Risk Hedging Plan
  • Tail Risk Hedging Framework
  • Risk Factors
  • Stress-Testing

Part IV: Hedging Strategies

  • Active Diversification
  • Active Hedging
  • Research: Tortoise and the Hare
  • Hedging Currency Risk

Part V: Amidst the Storm

  • Active Tail Risk Management

Part VI: After the Storm

Assessment - MCQ

About IBF Certification

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

  • 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 https://www.ibf.org.sg/home/for-individuals/ibf-certification/why-be-ibf-certified

About Our Trainer

Our trainer brings decades of expertise in investment, treasury, and wealth management training. A derivatives and financial markets specialist, he has managed institutional trading risk and designed learning solutions for global banks. Holding three international designations in investment and risk, he has trained candidates for over twenty years, completed fintech studies at a leading institution, and advises startups on financial products.