Risk Management & Treasury Operations - An Introduction

Understanding the importance of Risk Management and Treasury Operations is paramount to any employee in this environment.

This publication will highlight and discuss all aspects related to the management of risks in the treasury environment as well as the various functions that are performed in the Treasury Operations area in an easily understandable and comprehensible structure to ensure that the learning experience is fruitful, enjoyable and rewarding. 

The content is divided into separate modules. Each module covers a different topic related to the Treasury Operations function as well as the various types of financial and non-financial risks that are prevalent in a Treasury environment.

Target market

The publication is aimed at individuals who wish to enhance their knowledge and understanding of the Risk Management and Treasury Support function. Although the course does not cover great detail regarding these functions, it does ensure that a general overview and solid understanding is formed of the different types of risks, the process of risk management and the importance of the support function of a treasury operation.

Publication content 

Risk Management: The Importance of Risk, Risk Management Process, Risk Mitigation Approaches, Risk Management Techniques, Risk Decomposition, Banking Supervision and Regulations (The Basel Committee; Basel III), Risk Categories and Definitions, Segregation of Duties

Currency Risk: Foreign Exchange Rate Risk, Banks and Foreign Exchange Risk, The Foreign Exchange Market (Spot Market; Forward Market), Associated and Created Risks (Liquidity; Sovereign Risk/Political Risk; Economic Risk), Associated Risks for Corporates.

Interest Rate Risk: Sources of Interest Rate Risk (Re-pricing; Yield Curve Risk; Basis Risk; Optionality), Management of Interest Rate Risk (Trading & Speculation)

Liquidity Risk: Management of Liquidity Risk, Regulators (Basel III global requirements), Other Factors Affecting Liquidity

Credit Risk: How Credit Risk Arises, Setting a Credit Strategy, Know Your Client ("KYC"), Principles for Management of Credit Risk, Common Sources of Major Credit Problems, Mark-to-Market Effect on Derivative Exposures, Determination of Customer Risk Management (Treasury Policy; Hedging; Types of Exposure; Risk Identification; Risk Quantification, Credit Risk Mitigation (Security; Collateral; Credit Derivatives; Credit Pricing; Recovery Risk; Limits and Control)

Settlement Risk: Causes of Settlement Risk, Customers and Settlement Risk

Operational Risk: Legal Risk, Documentation Risk

Treasury Support: Steps in a Typical Trade Cycle, Importance of Settlement, Relationships and Responsibilities, Settlement Conventions, Settlement Process, Nostro and Vostro Accounts, Product Accounting and Control


  • To instill a greater level of understanding of of Risk Management and Treasury Operations
  • To create exposure to the importance of risk, the many areas in which differing forms of risk occur and the approaches to the mitigation of risk
  • To ensure a solid comprehension of the role of regulators and supervisors in the risk environment
  • To create awareness of the value of segregation of duties
  • To identify with the different types of risk in a treasury environment
  • To comprehend and appreciate the role of treasury support, especially with respect to relationships with other business areas and the responsibilities of the treasury support area
  • To value the importance of the settlement process and to identify with the various treasury products with respect to accounting and control.

Suggested Learning