Given the breadth of the subject, this course is not intended to make you an expert in foreign exchange but is designed to be a practical and accessible learning experience. Many of the tools for managing foreign exchange risk are well-established, but its management still requires technical expertise and practical knowledge.

After completing this course, you should be able to:

• understand the foreign exchange market and participants;
• identify the sources of foreign exchange and related risks;
• outline some effective strategies for managing them;
• consider practical tools for ensuring foreign exchange risk is managed appropriately.
  

The course consists of 5 modules and 2 quizzes to test your understanding of the concepts. An appendix is also included that features a list of additional foreign exchange risk management resources, such as links to guidelines, associations, and other online resources.

Module 1 Foreign exchange market and risks
Introduction
Foreign exchange market
Sources of risk
Other related risks

Module 2 Forwards, futures, and swaps
Introduction
Forwards
Futures
Swaps

Module 3 Foreign exchange options
Introduction
Option basics
Fundamental strategies
Exotic options

Quiz 1

Module 4 Managing exposure
Introduction
Financial activities
Shifting risk
Sharing risk
Competitive issues
Hedging using derivatives
Managing credit exposures
Managing operational risk
Managing other exposures

Module 5 Management issues
Introduction
Hedging strategy
Dealer relationships
Forecasting exchange rates
Monitoring and risk oversight

Quiz 2

Summary

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 numerous articles and several books, including Essentials of Managing Treasury and Essentials of Financial Risk Management, both published by Wiley.