Front to Back Office: Trading Controls, Risk Measurement and Modelling (VIRTUAL CLASSROOM)

Mennta Energy Solutions
Course summary
Professional Training
4 days
1,240 USD
New York

Course description

Front to Back Office: Trading Controls, Risk Measurement and Modelling is a VIRTUAL classroom course presented by the energy training experts at Mennta Energy Solutions.

This fascinating course will give delegates a thorough understanding of best practice controls to be applied in commodity trading activities. It also offers in-depth coverage of systems requirements, credit risk management best practices, risk and performance measurement, and a strong focus on capital adequacy issues. Subject areas covered include recent developments in regulatory and legal compliance, and ethics.

This virtual solution is comprised of four live instructor-led sessions hosted on state-of-the-art training software with video, audio, chat, live polls, competitive quizzes, breakout sessions and much more!  See recorded demonstrations here.  The program will also include several self-study assignments to maximize the time with the instructor.


Prerequisite to Session 1 Self-Study Assignments:  2.5 Hours Self-Study

  • Introduction to Trading Risk Control (2 hours)
    • Why is risk control important?
    • Key legal requirements for risk control
    • Groups involved in a trading organization (front, mid and back office) and their involvement in risk-taking and risk control
    • Major trading risk categories – market, operational, liquidity, credit, legal, reputational, systemic
    • How companies control specific risks
    • What risks can be measured and the tools used
    • An independent risk management function
  • Pre-class case study reading (30 minutes)

Virtual Instructor-Led Session 1:  2 Hours Live

  • Market risk
    • Different types of market risk
    • Measurement methods
    • Risk limits
  • Operational risk
    • Sources of operational risk
    • Mitigation techniques
  • Regulatory and legal requirements
  • Additional risks to control: systemic, liquidity
  • Discussion of key industry case studies (pre-reading for class)

Prerequisite to Session 2 Self-Study Assignments: 30 Minutes Self-Study

  • Pre-class case study reading (30 minutes)

Virtual Instructor-Led Session 2:  2 Hours Live

  • Developing trading and risk management controls
    • Risk management control structure and the chain of command
    • Risk tolerance
    • Understanding types of risk, and setting trading authority limits and procedures
    • Trading room controls
    • Effective risk management systems
    • Best practice guidelines
  • Regulatory and legal compliance
    • Key regulatory organizations and their requirements
    • Sarbanes-Oxley
    • Dodd-Frank Act
    • Other key regulations and their implications
  • Trader ethics
    • Definitions – market manipulation and misconduct
    • Shades of gray
    • Organizational perceptions
    • Ethics in energy trading
  • Discussion of key industry case studies (pre-reading for class)

Prerequisite to Session 3 Self-Study Assignments:  2 Hours Self-Study

  • Understanding the Value at Risk Concept (2 hours)
    • What is VAR?
    • The uses and benefits of VAR
    • Risk measurement and key VAR parameters
    • Choosing and using certain calculation techniques

Virtual Instructor-Led Session 3:  2 Hours Live

  • Market price risk management and controls
  • Foundations for risk measures
  • Risk modeling methods
    • Types of stress testing
    • Stress testing versus “at risk” measures
  • Price volatility issues
  • Application and strengths/weaknesses of value‐at‐risk
  • Other uses of value‐at‐risk
    • Risk adjusted performance measurement

Prerequisite to Session 4 Self-Study Assignments:  2 Hours Self-Study

  • Introduction to Credit Risk Management
    • The difference between credit risk and market risk
    • Internal credit risk ratings and agency credit risk ratings
    • Credit risk limits and the significance of breaching those limits
    • Management’s role in the credit risk management process
    • Portfolio-level credit risk monitoring
    • Key methodologies used to measure credit risk
    • Methodologies and products used to manage and hedge credit risk

Virtual Instructor-Led Session 4:  2 Hours Live

  • Credit risk management and controls
    • Calculating credit exposure
    • Portfolio credit risk measurement
    • Forward‐looking credit models
    • Determining credit thresholds and limiting exposure
    • Key measures of capital adequacy
    • Cash-flow-at-risk
    • Impact of margin on working capital
    • Capital adequacy framework
    • Key issues with credit and collateral annexes
    • Credit mitigation and use of credit derivatives

About provider

Mennta Energy Solutions, formerly The Oxford Princeton Programme, addresses the knowledge gaps of energy professionals throughout the world with innovative and proven training techniques – instructor-led and online. The effectiveness of the training can be measured by the over 100,000...

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