Investment Risk

A practical half-day course for The Investment Association member firms’

employees who wish to understand the nature of

investment risk and how it is managed

20th September 2016

8th December 2016

Key Learning Objectives:

• Understand the major investment risk measures and how they are

relevant to different types of funds and asset classes

• Be able to analyse risk metrics and understand the relationship

between the different values presented

• Consider stress testing and how effective it is at forecasting

returns in extreme situations

• Be aware of the content of investment risk reports and how to

interpret them

• Explore investment risk modelling and oversight, and how this fits

into the risk management process

New Course for 2016

Please return completed forms to: The Training Co-ordinator, The Investment Association, 65 Kingsway,

London WC2B 6TD Tel: 020 7831 0898; Fax: 020 7831 9975; E-mail:

training@theinvestmentassociation.org

Background:

Institutional and retail customers, regulators and auditors, as well as the press and consumer

groups, need to be confident that their money is professionally managed. Risk management is a

critical discipline in the investment business.

This course will help more employees, particularly those between an introductory and

intermediate level, to understand the nature and management of investment risk. It will appeal to

those who are not risk experts but need to know how investment risk fits into the broader risk

management processes and the different functions within the business. It will also help attendees

ask appropriate questions regarding investment risk in the context of their own role and to

understand and interpret the reports generated by the investment risk team.

The programme is practical in nature and includes a case study, with examples and exercises

used throughout.

The course has been developed in conjunction with Enterprise Learning, one of The Investment

Association’s preferred training providers and a consultancy which specialises in financial

services risk management. (Voted Best Consultancy 2011 in the annual Thompson Reuter

Compliance Awards

Those who should attend:

All management and supervisory level staff within investment management firms who need to

understand investment risk. This might include managers, supervisors or specialists from the

following activities:

• Marketing/Sales and Business Development

• Investment Management

• Customer Support and Reporting

• Distributor Relationship Management

• Investment Operations and Administration

• Risk, Compliance and Legal

It may also be relevant for specialists from organisations which support and/or supply services to

investment management firms such as:

• Third Party Administrators

• Consultants

• Professional Services Advisers

• Regulators

Lead Course Trainer:

Jane Vessey, Course Director has twenty years’ experience working in the investment industry.

Jane started out as an equity analyst before becoming an investment manager, working for Bank

of America, County NatWest and MeesPierson. Jane is a visiting lecturer at Cass and Cranfield

Business Schools as well as providing short courses at a number of other business schools and

to practitioners in London and overseas.

Expert Speaker:

Ian Davies is a Risk Director at Aviva Investors. He has 21 years of experience in risk

management and speaks at leading events in the UK and Luxembourg and organises the Asset

Management Risk Forum. Before joining Aviva Investors, Ian was Head of Risk, Europe for

Schroders.

Please return completed forms to: The Training Co-ordinator, The Investment Association,

65 Kingsway, London WC2B 6TD Tel: 020 7831 0898; Fax: 020 7831 9975; E-mail:

training@theinvestmentassociation.org

Course Programme:

09:15 Introduction: Background to the workshop and introduction to the course

objectives

The nature of investment risk:

• Definition and sources of risk

• Identifying and monitoring investment risk

• How investment risk fits in the risk management process

• Risk controls and mitigation

• Investment risk modelling

• Trade-off between risk and return

Overview of key risk measures:

Understanding the key measures used, which funds they should be used

for and what the metrics tell you

• Standard deviation of total returns and tracking error

• Value at risk (VaR)

10:30 Expert speaker : Ian Davies, a senior risk manager at Aviva Investors and

Chairman of The Investment Association’s Risk & Regulation Committee,

will talk about the practicalities of investment risk oversight from a senior

management/board perspective

11:15 Morning coffee

Overview of key risk measures continued:

• Beta, active share

• Duration, credit risk

• Drawdown

• Leverage, gross method and commitment approach

• Correlation, R _ squared

Stress testing:

• What-if analysis and scenario approach

Case study: To consider and analyse risk reports for different funds

13:15 Course conclusion, lunch and networking

Please return completed forms to: The Training Co-ordinator, The Investment Association, 65 Kingsway,

London WC2B 6TD Tel: 020 7831 0898; Fax: 020 7831 9975; E-mail:

training@theinvestmentassociation.org

What previous delegates have said about The Investment Association's

risk courses:

“A very good course. It was useful to refresh and go through the topics.”

“The course was clearly well thought through with a good level of interaction.”

“I would recommend the course to anyone related to risk or investments, especially like me looking to

move into this field.”

“This has been one of the best risk related courses I have been to so far. Very well

structured and understandable by people who do not do risk.”

“A really useful overview, with plenty of food for thought about the difficulties and challenges that

asset managers face.”

In-house Courses:

This course and other programmes from The Investment Association are available as in-house events

and can also be tailored to cover specific training requirements.

For in-house quotations, or further information, please contact David Kanolik at The Investment

Association and see the website at http://www.theinvestmentassociation.org/investment-industry-

information/careers/in-house-training.html

2016 Course Date:

20 Sep at The Investment Association, 23 Camomile Street, London EC3A 7LL

8 Dec at The Investment Association, 23 Camomile Street, London EC3A 7LL

Further courses will be scheduled subject to demand.

Course Price:

This training course has been developed especially for member firms of The Investment

Association. The price is £375 plus VAT and is £450 plus VAT for non-members.

The price includes the delegate pack as well as lunch, tea and coffee on the day. Payment

should be made in full prior to attending the course. A 50% refund will be paid for cancellations

received 10 working days before the course; thereafter no refunds will be made. A full refund will

be made in the event of cancellation by The Investment Association/Enterprise Learning.

An invoice can be requested to facilitate payment. Payment can also be made by cheque (made

payable to ‘The Investment Association Services Ltd’) and sent with the registration form to:

Haneen AhmedTraining AdministratorThe Investment Association, 23 Camomile Street, London EC3A 7LLTel: 020 7831 0898 Fax: 020 7831 9975Email: training@theinvestmentassociation.org

An invoice will be issued upon receipt of payment.