"Professional knowledge and professional competence are the main attributes of leadership. Unless you know, and the men you command know that you know your job, you will never be a leader"
Field Marshal Sam Manekshaw
20Certification Program Catalogue
Summary:
The catalogue consists of a series of sections which are arranged into modules and cater to practical skills in the respective domains. Modules and sections are typically incorporated into a combined program and offered to candidates of the subscribing institution. This bespoke program collection could be 'white labelled' as the institution's program offering to its candidates. For example, a Treasury Certification Program or TCP (erstwhile Integrated Treasury Training Program: ITTP) could include a selection of sections, that a institution can decide on. Currently the 5 modules provide 45+ sections for a comprehensive review of all major facets of treasury business. In due course this will extend to other business verticals as well.
This program catalogue has been developed on the basis of research of current theory and global standard leading practices. The program objective is to ensure core skills transfers to all functions including line and support areas. The emphasis is to prepare personnel with both theoretical and practical skills in order to participate in and manage the business.
A recent batch consisted of classroom review of 150+ hours of both theory and practice and consists of:
•Reference materials consisting of the 2020 edition Treasury Handbook covering each module and section and consisting of over 1900 pages
•Review materials consisting of presentations of over 2700 slides
•Practice materials consisting of over 500 spreadsheet examples (100% demonstration coverage)
•Proctored testing facility
The module list is as follows:
(A) Products and pricing
(B) Risk controls and capital assessment
(C) Documentation
(D) Accounting
(X) Special Topics
Recommended attendance:
The professional from front office, mid-office, risk management, back-office, audit, financial control, legal, and system specialists.
Each function staffer could be allocated modules based on work area specialization. Sections from modules(A&B) which covers specific domains areas from products, risk and capital could be made common to all candidates.
Module 1 : Products
A.1 Introduction
Financial Markets, Banks, Money, Interest rates, Market features, Central banking, Bank management, and Treasury overview
A.2.Building Blocks
Conventions in interest rates, valuation of cash flows, return estimation, numerical methods, statistical analysis, distributions
A.3. Money Markets
Products, conventions.
A.4. Forward rate agreements
FRA Product, conventions, pricing, applications
A.5. Short Term Interest rate futures
STIR futures Products, market features, pricing, applications
A.6. Bonds
Products and variants, conventions, valuation methods, risk sensitivities, market features
A.7. Repurchase Agreements
Features, computations, variants, applications
A.8. Bond Futures #
Features, conversion and delivery, pricing, hedging with futures
A.9. Yield Curves
Definitions, types of curves, constructing and analysing curves
A.10. Foreign Exchange #
Product features and variants, application, conventions, pricing, foreign exchange risk, economics of foreign exchange markets
A.11. Currency Options #
Product features and variants, risks, pricing, hedging
A.12. Interest Rate, Cross Currency Interest rate Swaps & other rate derivatives #
Product features and variants, application, conventions, pricing, hedging, risk
A.13. Mutual Funds
Structure of Mutual Funds, Legal Framework, Schemes and Plans, NAV, Valuation and Risk
A.14. Credit Derivatives #
CDS, Bond Yields, Definitions and Product requirements, Default risk, Valuation and Risk, Other credit derivatives
A.15. Gold and Commodities Derivatives #
Products, OTC and Exchange markets, Risk, Hedging
A.16.Securitisation
Process, Participation, Risks, Mitigation, Valuation
A.17.Inflation Indexed Bonds
Concept, application, product variants, indices, risk and valuations.
A.18. Taxonomy of FX products *
Cover range of products including forward structures, barriers, binary, digitals, floaters, faders, average, chooser, TARN among others
A.19. Taxonomy of IR products *
Covers in arrears, quanto, callable/puttable swaps, swaption types, cap/floors, CMS, CMT, floaters and others
A.20. Interest Rate options *
Caps and Floors: parity, valuation, volatility, applications. Swaptions: parity, valuation, volatility, applications. Swaps with embedded options.
Module 2: Risk and Capital
B.1. Treasury Market Risk #
Treasury risk architecture, risk sensitivity measures, risk factor forecasting, review of aggregation methods, back-testing, portfolio risk aggregation.
B.2. Treasury Credit Risk #
Counterparty Risk types, risk measures for different products, mitigation of risk
B.3. Operational Risk Management *
Definitions, framework, OR governance, process and procedures, internal & external loss date, business environment, internal control factors, risk & control assessments, scenario analysis, capital modelling, reporting, risk appetite framework, reputational risk & OR.
B.4. Asset Liability Management #
Interest rate risk management, Liquidity risk management, Funds Transfer Pricing
B.5. Economic Capital : Market & Counterparty Credit Risk #
Definitions, uses, risk measures, aggregation, validation. Measuring capital for business units, allocations, performance measurement, optimisation. Economic capital assessment for market & counterparty credit Risk.
B.6. Stress Testing : Market & Counterparty Credit Risk #
Governance, testing tools and categories of stress testing. Stress testing methods for market risk and counterparty credit risk.
B.7. Specific Risk in Market Risk Framework *
Changes in specific VaR, Incremental Risk Charge, Securitisation treatment, and issues relating to standard approach for trading book Securitisation.
B.8. Capital for Treasury Market and Credit Risk #
Review of market and counterparty risk capital controls
Standardised Approach
Internal Models approach
Basle I, Basle II, Basel III review
B.9. Model Risk Management *
How models fail. Definitions and objectives, components of model risk management including governance, model development and mitigation. Models for liquid instruments, illiquid instruments and trading models.
B.10. Enterprise Risk Management *
ERM role, Governance framework, Risk role, Culture, ERM framework, risk identification, risk tolerance, workshop process, risk profile, allocation of risk, risk categories, disclosure
B.11. Capital for Operational Risk *
Principles of ORM, Basic Indicator, Standard Measurement Approach and Internal Measurement Approaches to capital estimation. Qualifying criteria, floor concept, Outsourcing, Transfer and Mitigations and ORM standards.
Case Studies
A selection from among the case studies collection on various subjects
Module 3 : Documentation
C.1. Documentation for Derivatives (1) : Master Agreements #
The documentation process
The 1992 ISDA Master Agreement
The 2002 ISDA Master Agreement
Section and schedule review.
Default and damages, Derivatives and Insolvency, Tax withholding issues, legal issues and cases.
Sample Master, Schedule, Confirmation, Board Resolution, Risk Disclosure Statements and Mark To Market declarations.
C.2. Documentation for Derivatives : Credit and Collateral
Review of market practices, types of credit support, structuring and managing documentation, Review of English Annex and para 11. Sample Credit Support documentation.
C.3. Documentation for Credit Derivatives
Products, Review of big and small bang protocols, Credit Events, Succession, ISDA documentation review, , legal issues and cases.
Sample Master Confirmation Agreements- Users and Market Makers
C.4. Documentation for Repos
Introduction to the repo markets, Legal issues affecting repos, Review of Global Master Repurchase Agreement, Tri-party Custodial Agreements, New developments. Sample Repo documentation.
C.5. Documentation for FX *
Objective, architecture, FXC Master Agreement, ISDA Master Agreement, Single Agreement, Non-reliance, Netting, Events of Default, Termination events, Close out amounts and other issues. Sample documentation
C.6. Documentation drafting : ISDA Schedule *
Drafting schedule, variants and provisions. Key provisions for market segments
Module 4: Accounting for Treasury Products
Financial instruments and financial derivatives, finance and accounting, internal controls, the accounting dataflow, valuation standards, risk accounting in banking and trading books
D.1. Accounting for treasury-cash
Accounting for Money Markets, Bonds and FX
D.2. Accounting for treasury-OTC derivatives
Accounting for Interest Rate Derivatives, Foreign Exchange & Derivatived and Credit Default Swap
D.3. Accounting for treasury-Exchange derivatives #
Accounting for exchange based Equity Instruments and Derivatives
D.4. Hedge accounting review
Hedge accounting concepts
D.5. Hedge accounting cases *
Application of hedge accounting to fair value and cash flow hedges with case example of each
Module 5: Special Topics
X. 1. Spreadsheets in Finance
Review of spreadsheets, application of data tables, statistical tools, goal seek, and sensitivity analysis. Application of financial, accounting and statistical functions.
X.2. Financial Modeling
Use of techniques such as optimization, simulation and matrix computation reviewed.
X.3. Basic Econometrics *
Review of regression and time series models
X.11. Models of Yield Curves *
Short rate, Binomial and Factor Models. Includes valuation concepts using Vasicek, CIR, BDT, Ho Lee, BK, HW, and BGM
X.20. Profit & Loss Analysis and Attribution *
Analysis of equity, bond and foreign exchange portfolios and the attribution of the portfolio profit & loss
The listing is based on the program planned for 2018/2019. Those marked as * are scheduled to be introduced. Those marked # are being revised over the earlier versions.
Details on request
Summary:
The catalogue consists of a series of sections which are arranged into modules and cater to practical skills in the respective domains. Modules and sections are typically incorporated into a combined program and offered to candidates of the subscribing institution. This bespoke program collection could be 'white labelled' as the institution's program offering to its candidates. For example, a Treasury Certification Program or TCP (erstwhile Integrated Treasury Training Program: ITTP) could include a selection of sections, that a institution can decide on. Currently the 5 modules provide 45+ sections for a comprehensive review of all major facets of treasury business. In due course this will extend to other business verticals as well.
This program catalogue has been developed on the basis of research of current theory and global standard leading practices. The program objective is to ensure core skills transfers to all functions including line and support areas. The emphasis is to prepare personnel with both theoretical and practical skills in order to participate in and manage the business.
A recent batch consisted of classroom review of 150+ hours of both theory and practice and consists of:
•Reference materials consisting of the 2020 edition Treasury Handbook covering each module and section and consisting of over 1900 pages
•Review materials consisting of presentations of over 2700 slides
•Practice materials consisting of over 500 spreadsheet examples (100% demonstration coverage)
•Proctored testing facility
The module list is as follows:
(A) Products and pricing
(B) Risk controls and capital assessment
(C) Documentation
(D) Accounting
(X) Special Topics
Recommended attendance:
The professional from front office, mid-office, risk management, back-office, audit, financial control, legal, and system specialists.
Each function staffer could be allocated modules based on work area specialization. Sections from modules(A&B) which covers specific domains areas from products, risk and capital could be made common to all candidates.
Module 1 : Products
A.1 Introduction
Financial Markets, Banks, Money, Interest rates, Market features, Central banking, Bank management, and Treasury overview
A.2.Building Blocks
Conventions in interest rates, valuation of cash flows, return estimation, numerical methods, statistical analysis, distributions
A.3. Money Markets
Products, conventions.
A.4. Forward rate agreements
FRA Product, conventions, pricing, applications
A.5. Short Term Interest rate futures
STIR futures Products, market features, pricing, applications
A.6. Bonds
Products and variants, conventions, valuation methods, risk sensitivities, market features
A.7. Repurchase Agreements
Features, computations, variants, applications
A.8. Bond Futures #
Features, conversion and delivery, pricing, hedging with futures
A.9. Yield Curves
Definitions, types of curves, constructing and analysing curves
A.10. Foreign Exchange #
Product features and variants, application, conventions, pricing, foreign exchange risk, economics of foreign exchange markets
A.11. Currency Options #
Product features and variants, risks, pricing, hedging
A.12. Interest Rate, Cross Currency Interest rate Swaps & other rate derivatives #
Product features and variants, application, conventions, pricing, hedging, risk
A.13. Mutual Funds
Structure of Mutual Funds, Legal Framework, Schemes and Plans, NAV, Valuation and Risk
A.14. Credit Derivatives #
CDS, Bond Yields, Definitions and Product requirements, Default risk, Valuation and Risk, Other credit derivatives
A.15. Gold and Commodities Derivatives #
Products, OTC and Exchange markets, Risk, Hedging
A.16.Securitisation
Process, Participation, Risks, Mitigation, Valuation
A.17.Inflation Indexed Bonds
Concept, application, product variants, indices, risk and valuations.
A.18. Taxonomy of FX products *
Cover range of products including forward structures, barriers, binary, digitals, floaters, faders, average, chooser, TARN among others
A.19. Taxonomy of IR products *
Covers in arrears, quanto, callable/puttable swaps, swaption types, cap/floors, CMS, CMT, floaters and others
A.20. Interest Rate options *
Caps and Floors: parity, valuation, volatility, applications. Swaptions: parity, valuation, volatility, applications. Swaps with embedded options.
Module 2: Risk and Capital
B.1. Treasury Market Risk #
Treasury risk architecture, risk sensitivity measures, risk factor forecasting, review of aggregation methods, back-testing, portfolio risk aggregation.
B.2. Treasury Credit Risk #
Counterparty Risk types, risk measures for different products, mitigation of risk
B.3. Operational Risk Management *
Definitions, framework, OR governance, process and procedures, internal & external loss date, business environment, internal control factors, risk & control assessments, scenario analysis, capital modelling, reporting, risk appetite framework, reputational risk & OR.
B.4. Asset Liability Management #
Interest rate risk management, Liquidity risk management, Funds Transfer Pricing
B.5. Economic Capital : Market & Counterparty Credit Risk #
Definitions, uses, risk measures, aggregation, validation. Measuring capital for business units, allocations, performance measurement, optimisation. Economic capital assessment for market & counterparty credit Risk.
B.6. Stress Testing : Market & Counterparty Credit Risk #
Governance, testing tools and categories of stress testing. Stress testing methods for market risk and counterparty credit risk.
B.7. Specific Risk in Market Risk Framework *
Changes in specific VaR, Incremental Risk Charge, Securitisation treatment, and issues relating to standard approach for trading book Securitisation.
B.8. Capital for Treasury Market and Credit Risk #
Review of market and counterparty risk capital controls
Standardised Approach
Internal Models approach
Basle I, Basle II, Basel III review
B.9. Model Risk Management *
How models fail. Definitions and objectives, components of model risk management including governance, model development and mitigation. Models for liquid instruments, illiquid instruments and trading models.
B.10. Enterprise Risk Management *
ERM role, Governance framework, Risk role, Culture, ERM framework, risk identification, risk tolerance, workshop process, risk profile, allocation of risk, risk categories, disclosure
B.11. Capital for Operational Risk *
Principles of ORM, Basic Indicator, Standard Measurement Approach and Internal Measurement Approaches to capital estimation. Qualifying criteria, floor concept, Outsourcing, Transfer and Mitigations and ORM standards.
Case Studies
A selection from among the case studies collection on various subjects
Module 3 : Documentation
C.1. Documentation for Derivatives (1) : Master Agreements #
The documentation process
The 1992 ISDA Master Agreement
The 2002 ISDA Master Agreement
Section and schedule review.
Default and damages, Derivatives and Insolvency, Tax withholding issues, legal issues and cases.
Sample Master, Schedule, Confirmation, Board Resolution, Risk Disclosure Statements and Mark To Market declarations.
C.2. Documentation for Derivatives : Credit and Collateral
Review of market practices, types of credit support, structuring and managing documentation, Review of English Annex and para 11. Sample Credit Support documentation.
C.3. Documentation for Credit Derivatives
Products, Review of big and small bang protocols, Credit Events, Succession, ISDA documentation review, , legal issues and cases.
Sample Master Confirmation Agreements- Users and Market Makers
C.4. Documentation for Repos
Introduction to the repo markets, Legal issues affecting repos, Review of Global Master Repurchase Agreement, Tri-party Custodial Agreements, New developments. Sample Repo documentation.
C.5. Documentation for FX *
Objective, architecture, FXC Master Agreement, ISDA Master Agreement, Single Agreement, Non-reliance, Netting, Events of Default, Termination events, Close out amounts and other issues. Sample documentation
C.6. Documentation drafting : ISDA Schedule *
Drafting schedule, variants and provisions. Key provisions for market segments
Module 4: Accounting for Treasury Products
Financial instruments and financial derivatives, finance and accounting, internal controls, the accounting dataflow, valuation standards, risk accounting in banking and trading books
D.1. Accounting for treasury-cash
Accounting for Money Markets, Bonds and FX
D.2. Accounting for treasury-OTC derivatives
Accounting for Interest Rate Derivatives, Foreign Exchange & Derivatived and Credit Default Swap
D.3. Accounting for treasury-Exchange derivatives #
Accounting for exchange based Equity Instruments and Derivatives
D.4. Hedge accounting review
Hedge accounting concepts
D.5. Hedge accounting cases *
Application of hedge accounting to fair value and cash flow hedges with case example of each
Module 5: Special Topics
X. 1. Spreadsheets in Finance
Review of spreadsheets, application of data tables, statistical tools, goal seek, and sensitivity analysis. Application of financial, accounting and statistical functions.
X.2. Financial Modeling
Use of techniques such as optimization, simulation and matrix computation reviewed.
X.3. Basic Econometrics *
Review of regression and time series models
X.11. Models of Yield Curves *
Short rate, Binomial and Factor Models. Includes valuation concepts using Vasicek, CIR, BDT, Ho Lee, BK, HW, and BGM
X.20. Profit & Loss Analysis and Attribution *
Analysis of equity, bond and foreign exchange portfolios and the attribution of the portfolio profit & loss
The listing is based on the program planned for 2018/2019. Those marked as * are scheduled to be introduced. Those marked # are being revised over the earlier versions.
Details on request