The ability to manage all risks in a business environment is critical. This is perhaps even more important in the volatile world of international trade and investment in one of its most important facets – the foreign exchange market.

In part one of this course, we covered the basic principles and operational features of foreign exchange operations.

In part two we take a deep dive into best practices for the management of foreign exchange operational risk. This course offers a range of practices that will help mitigate some of the operational risks that are specific to the foreign exchange industry. Such best practice may help reduce operational costs because of the fact that less time and effort is needed to investigate and address operational problems.

To round off part two of the course we will examine a detailed case study relating to a recent series of events at a major global bank that will clearly serve to illustrate all that we have covered in parts 1 and 2 of this course.

Subjects that we cover in part two include:

• A detailed look at the foreign exchange trade processing cycle,
• Standards of best practice aimed at reducing foreign exchange operational risks,
• Seven critical aspects of the foreign exchange processing cycle (information flow, segregation of duties, staff understanding, operational risk, product development, product sign-off, control system access and audit and risk control).
• Illustrative case study.

On completing both parts of the course, participants will easily be able to implement these standards of best practice in their own working environment.