Treasury Risk Management: Interest Rate and Currency Hedging (AF-053) Training Course

Treasury Risk Management: Interest Rate and Currency Hedging

Movements in interest rates and exchange rates can erase operating profits, increase debt costs and create unexpected volatility in reported results. Organisations with…

5 daysClassroom or online

49Upcoming dates

12Cities

£2,250Fees from

Course overview

Introduction

Movements in interest rates and exchange rates can erase operating profits, increase debt costs and create unexpected volatility in reported results. Organisations with foreign currency revenues, imported inputs, international investments or floating-rate borrowing need a disciplined way of identifying and managing these exposures.

This Treasury Risk Management training course gives participants a practical understanding of how to measure interest rate and currency risk and how to use common hedging instruments responsibly. Participants work through forwards, swaps, options and natural hedging techniques, and learn how to choose between them based on cost, flexibility and risk appetite.

The course also covers the policy, governance, accounting and control framework that a sound hedging programme requires, so that participants can design and defend a hedging strategy that protects the organisation rather than creating new risks.

Course Objectives

By the end of this training course, participants will be able to:

Identify transaction, translation and economic currency exposures
Measure interest rate risk in borrowing, investment and balance sheet positions
Explain how forwards, futures, swaps and options are priced and used for hedging
Compare natural hedging, operational hedging and financial hedging strategies
Design a hedging policy with clear objectives, limits, instruments and authorities
Evaluate hedge effectiveness and understand the basics of hedge accounting
Establish controls, reporting and counterparty risk management for treasury operations
Communicate treasury risk positions and hedging decisions to senior management and boards

Target Audience

This training course is suitable for a wide range of professionals, including:

Treasurers, treasury managers and treasury analysts
Finance directors and financial controllers
Risk managers responsible for market risk
Corporate finance and investment professionals
Internal auditors reviewing treasury activities
Accountants involved in hedge accounting
Bankers supporting corporate clients

Training Methodology

The course combines clear explanations of financial concepts with spreadsheet exercises, worked hedging examples and case studies of companies that managed, or mismanaged, their market risks. Participants analyse exposure data, compare hedging alternatives, draft policy content and present recommendations in a simulated treasury committee meeting.

Target Competencies

Market risk identification and measurement
Hedging instrument selection
Treasury policy development
Hedge effectiveness and accounting awareness
Treasury controls and reporting
Financial decision communication

Course outline

1Day One: Foundations of Treasury Risk

The Role of Treasury: Liquidity, funding, risk management and stakeholder expectations
Market Risk Overview: Interest rate, currency, commodity and counterparty risk
Risk Appetite: Defining what level of volatility the organisation can accept
Exposure Identification: Mapping cash flows, contracts and balance sheet items
Drivers of Exchange Rates and Interest Rates: Economic factors and market behaviour
Lessons from Treasury Failures: Speculation, poor controls and misunderstood instruments
Case Study: Mapping the market risk exposures of an international manufacturer

2Day Two: Measuring Currency and Interest Rate Exposure

Currency Exposure Types: Transaction, translation and economic exposure
Forecasting Exposures: Using sales, purchase and investment plans
Interest Rate Exposure: Fixed and floating debt, repricing gaps and refinancing risk
Sensitivity Analysis: Measuring the impact of rate and currency movements on earnings
Value at Risk and Cash Flow at Risk: Concepts, uses and limitations
Reporting Exposures: Dashboards for management and treasury committees
Practical Exercise: Building an exposure and sensitivity report

3Day Three: Hedging Instruments and Strategies

Forward Contracts: Pricing, uses and rollover considerations
Interest Rate and Cross-Currency Swaps: Structures and applications
Options: Caps, floors, collars and currency options explained
Natural and Operational Hedging: Matching currencies, pricing clauses and sourcing choices
Comparing Strategies: Cost, certainty, flexibility and opportunity loss
Hedging Ratios and Tenors: How much to hedge and for how long
Workshop: Designing hedging strategies for currency and debt exposures

4Day Four: Policy, Accounting and Control

Hedging Policy Design: Objectives, permitted instruments, limits and authorities
Governance: Treasury committees, board oversight and segregation of duties
Hedge Accounting Basics: Designation, documentation and effectiveness testing
Counterparty Risk: Bank selection, limits and collateral arrangements
Treasury Systems and Controls: Deal capture, confirmation and settlement
Audit and Compliance: What reviewers look for in treasury operations
Practical Exercise: Drafting key sections of a treasury risk policy

5Day Five: Decision-Making and Communication

Scenario Planning: Preparing for sharp rate rises or currency shocks
Executing Hedges: Working with banks, obtaining quotes and managing transaction costs
Monitoring Hedge Programmes: Performance review and policy compliance
Communicating with the Board: Explaining positions, results and residual risk
Emerging Practices: Treasury technology, automation and sustainable finance links
Building Treasury Capability: Skills, processes and continuous improvement
Simulation: Presenting a hedging recommendation to a treasury committee

Frequently asked questions

How long is the Treasury Risk Management: Interest Rate and Currency Hedging course?

The course runs over 5 days of classroom training, usually Monday to Friday.

When is the next Treasury Risk Management: Interest Rate and Currency Hedging course?

The next public date is 7 - 11 Dec 2026 in London. There are 49 upcoming dates in total.

Where is this course held?

Upcoming sessions run in London, Barcelona, Frankfurt, Munich, Paris, Rome, Vienna, Amsterdam, Dubai, Geneva, Kuala Lumpur, Madrid.

Can I take Treasury Risk Management: Interest Rate and Currency Hedging online?

Yes. Every date can also be joined live online in a virtual classroom with the trainer, for £1,280 per participant. Choose "Live online" in the dates table when you register.

How much does the course cost?

Fees start from £2,250 per delegate, depending on the city. Fees include tuition and course materials.

Do participants receive a certificate?

Yes. Delegates who complete the course receive a London Leadership Management Innovation certificate of completion.

Can this course be delivered in-house for our team?

Yes. LLMI can tailor and deliver this course privately for your organisation at your premises or in one of our training cities.

Course information last updated 14 November 2026.

Treasury Risk Management: Interest Rate and Currency Hedging

Course overview

Introduction

Course Objectives

Target Audience

Training Methodology

Target Competencies

Course outline

Dates and fees

Frequently asked questions

More Accounting and Finance courses

Accounting Policies and Procedures

Accounts Payable: Accounting and Management Best Practices

Activity-Based Costing and Profitability Analysis

Training a team?