imported>Doug Williamson |
imported>Doug Williamson |
Line 1: |
Line 1: |
| [[File:CertFMM page picture 2017 01 19th.png|border|380px|alt=Flag of Mexico]]
| | ''Sustainability.'' |
|
| |
|
| | 1. |
|
| |
|
| The Certificate in Financial Maths & Modelling qualification and course of the Association of Corporate Treasurers. | | The rise in global temperatures from the mid 20th century to the present. |
|
| |
|
| CertFMM was an elective part of the AMCT qualification from 2006 to 2016.
| |
|
| |
|
| == Overview of the course ==
| | 2. |
| CertFMM equips you with the practical insights and understanding to:
| |
|
| |
|
| - Challenge and use the outputs from models to support important risk management and valuation decisions.
| | The adverse effects of this rise in global temperatures. |
|
| |
|
| - Build and validate models in MS Excel, or on other platforms.
| |
|
| |
|
| | 3. |
|
| |
|
| CertFMM provides a rigorous integrated set of tools to understand and explain:
| | Any long-term shift in global or regional climate patterns. |
| * Financial instruments
| |
| * Financial risk
| |
| * Corporate value and
| |
| * The fundamentally important relationships between them.
| |
|
| |
|
|
| |
|
| The most important benefit of working with these tools is developing the skill to identify assumptions, and the confidence to challenge them.
| | == See also == |
| | | * [[Accounting for Sustainability]] (A4S) |
| This is essential in practice because so many real life assumptions are unstated, unrecognised, and expensively or dangerously wrong.
| | * [[Business & Sustainable Development Commission]] |
| | | * [[Carbon footprint]] |
| | | * [[Climate benchmark]] |
| The emphasis is on the practical investigation of real life problems and opportunities to either:
| | * [[Climate risk]] |
| * Save costs or | | * [[Corporate social responsibility]] |
| * Reduce risk or
| | * [[Metaeconomics]] |
| * Identify pricing bargains.
| | * [[Natural capital]] |
| | | * [[Organic]] |
| | | * [[SRA]] |
| Techniques include interest, foreign exchange and commodity risk modelling.
| | * [[SRI]] |
| | | * [[Sustainability]] |
| The general purpose tools and techniques are then applied to practical case studies.
| | * [[Sustainability Accounting Standards Board]] |
| | | * [[Sustainability bond]] |
| | | * [[Sustainable Development Goals]] |
| The course introduces and analyses the use of options for financial risk management.
| | * [[UK Climate Change Committee]] |
| | | * [[United Nations]] |
| It incorporates the valuation of different types of option using binomial pricing models and the Black Scholes model.
| | * [[World Business Council for Sustainable Development]] |
| | |
| It also introduces and applies Value at Risk (VaR) measures, their important uses and their even more important limitations.
| |
| | |
| | |
| | |
| == Course structure ==
| |
| The course is structured into six units covering:
| |
| #Financial modelling fundamentals
| |
| #Applied debt modelling
| |
| #Foreign exchange modelling applications
| |
| #Practical derivatives modelling
| |
| #Options
| |
| #Applied corporate finance and real option modelling
| |
| | |
| | |
| == Financial modelling fundamentals ==
| |
| These are the nuts and bolts of financial maths and modelling in the five essential areas of:
| |
| * Practical [[interest rate]] optimisation | |
| * Modelling series of fixed, growing or declining future cashflows, including pension liabilities | |
| * Modelling the term structure of interest rates using no arbitrage | |
| * Expensive misconceptions in statistics | |
| * Value at Risk and its limitations | |
| | |
| | |
| The platform used on the course is MS Excel.
| |
| | |
| The principles illustrated and applied are also fully relevant to all other platforms.
| |
| | |
| | |
| == Applied debt modelling ==
| |
| This unit investigates debt in the important areas of:
| |
| *Present values | |
| *Future cash flows, timing and risk | |
| *Interest rate sensitivity and hedging | |
| | |
| You will gain a deep and broad applied understanding of the relationships between value, risk, maturity, coupon rate and coupon frequency.
| |
| | |
| | |
| == Foreign exchange modelling applications ==
| |
| This unit introduces and applies the key tools to model [[foreign exchange]] (FX) including:
| |
| *FX quoting conventions | |
| *[[Hedging]] using forward foreign exchange contracts | |
| *Relationships between foreign exchange rates, interest rates and [[inflation]] rates | |
| *Applying [[VaR]] to foreign exchange risk management | |
| | |
| | |
| == Practical derivatives modelling ==
| |
| This covers the maths and modelling of derivatives in:
| |
| *Derivatives modelling fundamentals | |
| *Modelling long-term swaps | |
| | |
| | |
| == Options ==
| |
|
| |
|
| This unit investigates options in depth in the four areas of:
| | [[Category:Accounting,_tax_and_regulation]] |
| *[[Option]] payoffs
| | [[Category:The_business_context]] |
| *Modelling option hedges
| | [[Category:Compliance_and_audit]] |
| *Option valuation modelling
| | [[Category:Ethics]] |
| *Options [[arbitrage]] and the put-call parity relationship
| | [[Category:Identify_and_assess_risks]] |
| | | [[Category:Manage_risks]] |
| | | [[Category:Risk_frameworks]] |
| == Applied corporate finance and real option modelling ==
| |
| The final unit of the CertFMM course integrates the techniques introduced earlier, and covers:
| |
| *Modelling for corporate finance including corporate valuation
| |
| *Capital structuring in practice
| |
| *[[Real option]] modelling
| |
| | |
| | |
| === Other resources ===
| |
| | |
| [[Media:The_Treasurer_articles - financial_applications.pdf| Financial modelling applications, The Treasurer]] | |
| | |
| | |
| == See also ==
| |
| * [[Annuity factor]]
| |
| * [[Association of Corporate Treasurers]]
| |
| * [[Capital asset pricing model]]
| |
| * [[Cross-currency interest rate swap]]
| |
| * [[Day count conventions]]
| |
| * [[Discount rate]]
| |
| * [[Dividend valuation model]]
| |
| * [[Excel]]
| |
| * [[Financial maths]]
| |
| * [[Financial model]]
| |
| * [[Foreign exchange forward contract]]
| |
| * [[Four way equivalence model]]
| |
| * [[Interest rate parity]]
| |
| * [[Internal rate of return]]
| |
| * [[LIBOR]]
| |
| * [[MCT]]
| |
| * [[Model risk]]
| |
| * [[Present value]]
| |
| * [[Real option]]
| |
| * [[Rounding]]
| |
| * [[Spreadsheet risk]]
| |
| * [[Swap points]]
| |
| * [[Value at risk]]
| |