Financial risk is the probability of loss arising from the occurrence of adverse events in financial markets. In four modules, this online course offers an introduction to the fundamental concepts of financial risk, its sources, and various strategies for its management.

Business is challenging at the best of times. This course is not intended to make you an expert in financial risk management. Financial risk is complex and its management requires both technical expertise and practical knowledge gained through experience. The ability to ask questions that might appear overly simplistic to experts, or for which answers are presumed, is important in risk management.

The course is designed to be a practical and accessible learning tool. The four modules are relatively free of industry jargon and unnecessary complexity; meant to each be covered in about one hour (though you may take more or less time, depending on how you learn and your understanding of the subject matter); and three of the four modules conclude with a short quiz designed to test your knowledge of the material. An appendix is also included that features a list of additional financial risk management resources, such as links to OSFI guidelines, associations, and other online resources.

This course is self-contained but contains numerous links for further information.

Module 1 Financial risk
What is financial risk?
How does financial risk arise?
Risk management as a process

Module 2 Types of financial risk
Introduction
Foreign exchange risk
Interest rate risk
Credit risk
Operational risk
Other risks

Module 3 Managing FX and interest rate market risks
Introduction
Foreign exchange risk
Interest rate risk

Quiz 1

Module 4 Other risks and management issues
Introduction
Credit risk
Operational risk
Management
Summary

Quiz 2

Appendix

The course was written by treasury and risk management expert, Karen Horcher. Karen is a Certified General Accountant (CGA) and holds a Chartered Financial Analyst (CFA) designation as well as an undergraduate degree in economics. She provides treasury consulting and training to corporations, financial institutions, and professional organizations.

Karen served as a currency and money market trader, later developing interest rate and currency risk management strategies for corporations. She has assisted senior management and boards of directors in risk mitigation and in capital markets activities. Karen has served as a director of a not-for-profit and a federal Crown corporation and has written articles and several books, including Essentials of Managing Treasury and Essentials of Financial Risk Management, both published by Wiley