CISI Training: Corporate Governance and Its Interpretation Relevant to the following CISI qualifications: ICWIM, ICAWM, Risk in Financial Services DEFINITION Corporate governance is the system by which organizations are directed and controlled. The defects of poor corporate governance have recently been very visible in financial institutions around the world. Since the endorsement of Sarbanes–Oxley, companies…
CISI Training Review: Understanding Key Financial Terms and Statements Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities DEFINITION Publicly traded companies are under an obligation to deliver regular trading updates to the market, ensuring that at all times they present a reasonable reflection of their actual trading performance. However, the terms commonly used in…
CISI Training IFQ: An Overview of Shariah-Compliant Funds Relevant to the following CISI qualifications: Islamic Finance Qualification DEFINITION Shariah-compliant funds are investment vehicles which are fully compliant with the principles of Islam. The funds are prohibited from making investments in industries categorized as morally deficient, such as those related to gambling or alcohol. Because Islam…
3 mistakes students make when studying for CISI Exams Throughout the years we’ve been teaching CISI, we’ve seen students make all sorts of mistakes. Three of these mistakes stand out because they can be the main reason students fail. So, what are these mistakes and how can you avoid them? Mistake #1: Not Giving It…
Relevant to the following CISI qualifications: ICWIM, ICAWM, Securities, Risk in Financial Services DEFINITION The time value of money is based on the premise that most people would choose to receive, say, $10,000 now, rather than the same sum in five years’ time. Why? Firstly, because any rational person knows that the $10,000 will almost…
CISI Exam Prep: Identifying and Managing Exposure to Interest and Exchange Rate Risks Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives DEFINITION The successful management of a portfolio includes maximizing returns from shifts in exchange and interest rates, which in turn requires an appreciation of the associated exposures. Not knowing the exposure…
CISI Exam Prep: Hedging Liquidity Risk – Case Studies and Strategies Relevant to the following CISI qualifications: Risk in Financial Services DEFINITION The concept of “liquidity risk” tends to be very loosely defined. It is used most commonly with reference to the banking and finance industry, but it is an important issue for all companies.…
CISI Exam Prep: Hedging Interest Rate Risk – Case Studies and Strategies Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives, ICAWM DEFINITION Risks arise from the way the value of an investment changes with the level of interest rates. This is most clearly seen in the value of fixed-rate investments such as…
CISI Exam Prep: Hedging Foreign Exchange Risk—Case Studies and Strategies Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives, ICAWM DEFINITION A company that imports raw materials, exports finished goods, or has overseas assets or subsidiaries is exposed to fluctuations in exchange rates. Adverse movements can wipe out export profits, while positive changes…
CISI Exam Prep: Hedging Credit Risk – Case Studies and Strategies Relevant to the following CISI qualifications: Risk in Financial Services, Derivatives DEFINITION Credit risk is the uncertainty about the ability of a debtor or the counterparty in an agreement to make a payment. Strategies for managing credit risk use traditional credit analysis techniques to…