Intense, real-world, memorable - gamified simulation training
Intense, real-world, memorable - gamified simulation training
In the Market Risk Simulation, participants step into the roles of risk managers, traders, and financial analysts at institutions exposed to dynamic global markets.
Value at Risk and Expected Shortfall methodologies
Stress testing and scenario analysis
Sensitivity analysis
Hedging strategies using derivatives
Liquidity risk and market impact
Regulatory frameworks
Volatility modeling and forecasting
Correlation and diversification breakdowns during crises
Risk-adjusted performance measurement
Behavioral biases in risk decision-making
In the simulation, participants will:
Monitor live market data feeds and identify emerging risk exposures
Calculate and interpret VaR, stress test results, and sensitivity metrics
Design and execute hedging strategies using appropriate derivatives
Adjust portfolio positions to stay within regulatory and internal risk limits
Respond to simulated market shocks
Prepare and present risk reports to a simulated management committee or board
Collaborate across teams to align trading, risk, and compliance objectives
Review and learn from round outcomes to refine strategies in subsequent cycles
Understand key market risk metrics and their practical applications
Implement VaR, stress testing, and scenario analysis in realistic settings
Design effective hedging strategies for various risk types
Navigate regulatory constraints and internal risk governance frameworks
Communicate risk exposures and mitigation plans clearly to stakeholders
Recognize behavioral pitfalls and cognitive biases in risk management
Develop confidence in making risk-adjusted decisions under time pressure
Apply quantitative tools to balance risk, return, and liquidity in dynamic markets
1. Receive a Market Scenario and Risk Brief Participants review the initial market environment, portfolio positions, regulatory limits, and institutional objectives.
** 2. Analyze Risk Exposures** Using provided data tools, participants calculate current VaR, identify concentration risks, and run stress scenarios.
3. Make Risk Management Decisions Decisions may include adjusting hedges, rebalancing portfolios, approving/rejecting proposed trades, or escalating breaches.
4. Collaborate Across Functions Teams may role-play as risk management, trading desks, and senior management to negotiate risk-return trade-offs.
5. Experience Market Shocks and React The simulation injects unexpected market events, forcing participants to reassess exposures and respond promptly.
6. Report and Justify Decisions Participants summarize their risk posture, actions taken, and results in a structured management report or brief presentation.
7. Review Feedback and Reflect The system provides scores on risk metrics, hedging effectiveness, limit adherence, and communication clarity. Strategies are refined in subsequent rounds.
Who is the Market Risk Simulation designed for? It’s ideal for students and professionals pursuing careers in risk management, trading, asset management, corporate treasury, or financial regulation.
Do I need prior experience with quantitative finance? No. The simulation includes instructional support, including video tutorials and guides on key concepts like VaR and hedging, making it accessible to beginners while remaining challenging for advanced users.
How long does the simulation typically run? The core simulation runs for 2–4 hours but can be delivered in shorter modules or extended to multi-session formats for deeper exploration.
Is this an individual or team-based exercise? It supports both. Team-based play encourages collaboration and mirrors real-world risk-committee dynamics.
What financial instruments and markets are covered? Participants work with equities, bonds, currencies, commodities, and associated derivatives (futures, options, swaps) across major global markets.
Can instructors customize the simulation scenarios? Yes. Instructors can adjust market parameters, risk factors, shock events, and regulatory constraints to match course objectives.
How is participant performance measured? Performance is assessed based on risk-adjusted returns, hedging effectiveness, compliance with limits, quality of risk reporting, and decision-making under stress.
What roles does this simulation prepare participants for? It prepares participants for roles such as Market Risk Analyst, Quantitative Risk Manager, Derivatives Trader, Portfolio Risk Manager, and Risk Compliance Officer.
Accuracy and insight of risk metric calculations
Effectiveness and cost-efficiency of implemented hedging strategies
Adherence to regulatory and internal risk limits
Clarity, structure, and persuasiveness of risk reports or presentations
Ability to adapt strategies based on new market information and shocks
Peer and self-assessment feedback on collaboration and decision-making
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.
or
Book a 15-minute Zoom demo with one of our experts to explore how the simulation can benefit you.
