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Risk management in the service of ethical finance

  • Led by
  • Description
  • Length

Mallé Siby (co-leader:
M. Aissaoui)
Founding partner of Ethic Services
Secetary of the Finequity association
A graduate in mathematics, statistics and finance, Mallé was formerly a Risk Manager with Société Générale.
Since 2007, he has been a Market Risk Analyst, Fixed Income with Dexia.

The economic crisis we have been experiencing over the past two years has opened the way for new ways of thinking about investment. The various economic agents must now take into account extra-financial parameters when making choices. Ecological risk and instances of abuse in the financial world have only accentuated this phenomenon. Serious liquidity problems, sometimes resulting in insolvency risk, have forced financial institutions to think about other sources of finance. Ethical finance is establishing itself as an alternative financial practice that places sustainable development and the real economy at the heart of these various issues.

2 days
 
  • Objectives
  • Audience
  • Breakdown
  • Understanding the key issues in a robust internal risk management system
  • Understanding the fundamentals of ethical finance and mastering the products and techniques used
  • Mastering the concept of market risk and identifying risk factors in relation to the main products
  • Translating risk measurement and monitoring issues at a regulatory level

Risk managers, analysts, traders, sales, structurers, middle office, back office, compliance, audit and IT departments

  • 30% practical
  • 70% theory
 
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  • Programme
  • Upcoming inter-company sessions

Risk management in Islamic finance
Day 1:

Introduction to Islamic finance

  • Definition and history of Islamic finance
  • Foundations of Islamic finance
  • The Islamic finance market

Part 1:
Sharia-compliant products
Islamic finance products

  • Shariah-compliant contractual tools
  • Islamic bonds: the sukuk market and structuring

Financial innovation

  • Derivatives and structured products: the conventional approach
  • Financial engineering: structuring Shariah products

Exercises: Identifying non-Shariah-compatible clauses in conventional termsheets

Day 2:
Part 2:
Measuring and monitoring risk in Islamic finance
Quantitative risk management concepts and techniques
Process for managing specific risks

  • Islamic bank financial statements
  • Confusion of risks in Islamic finance
  • Risks connected with sukuk issues
  • Risk management under the Basel II regulations

Exercises: Calculating risk provisions in Islamic finance

  • 3-4 and 24-25 September
  • 8-9 and 29-30 October
  • 12-13 November


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