The ability to manage all risks in a business environment is critical. This is perhaps even more important in the volatile world of international trade and investment in one of its most important facets – the foreign exchange market.

In part one of this course, we covered the basic principles and operational features of foreign exchange operations.

In part two we take a deep dive into best practices for the management of foreign exchange operational risk. This course offers a range of practices that will help mitigate some of the operational risks that are specific to the foreign exchange industry. Such best practice may help reduce operational costs because of the fact that less time and effort is needed to investigate and address operational problems.

To round off part two of the course we will examine a detailed case study relating to a recent series of events at a major global bank that will clearly serve to illustrate all that we have covered in parts 1 and 2 of this course.

Subjects that we cover in part two include:

  • A detailed look at the foreign exchange trade processing cycle,
  • Standards of best practice aimed at reducing foreign exchange operational risks,
  • Seven critical aspects of the foreign exchange processing cycle (information flow, segregation of duties, staff understanding, operational risk, product development, product sign-off, control system access and audit and risk control).
  • Illustrative case study.

On completing both parts of the course, participants will easily be able to implement these standards of best practice in their own working environment.

Learning Objectives
  • Discover what foreign exchange operational areas are included in the best practice guidelines.
  • Explore the key elements of best practice in managing operational risk in a foreign exchange environment.
  • Identify the different components of the foreign exchange trade processing cycle.
  • Recognize how best practice plays a key role in mitigating operational risks.
  • Discover how to manage the risks involved in the foreign exchange process.
Last updated/reviewed: August 14, 2023
3 Reviews (8 ratings)


Member's Profile
The example was interesting and held my attention. I did feel like this was more focused on trades, which is not what I understood by reading the course description.

Anonymous Author
This course provides a good understanding of Best Practices for Managing Operational Risk.

Member's Profile
Good course to gain an understanding of how to manage OR in FX activities.

Course Complexity: Intermediate

Completion of Part 1 of this course is a prerequisite for proceeding to Part 2.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
Introduction And Overview
  Introduction to Managing Operational Risk in Foreign Exchange Activities Part 24:23
  The Foreign Exchange Process Flow5:46
  Foreign Exchange Best Practice4:44
  Best Practice Information Flow2:06
  Best Practice Segregation of Duties2:40
  Best Practice Staff Understanding3:04
  Best Practice Operational Risk2:05
  Best Practice New Products3:16
  Best Practice Proper Sign Off1:43
  Best Practice Control System Access2:49
  Best Practice Audit/Risk Control2:38
  Case Study Foreign Exchange Operational Risk29:19
Continuous Play
  Managing Operational Risk in Foreign Exchange Activities Part 2 1:03:35
Supporting Material
  Slides: Managing Operational Risk in Foreign Exchange Activities Part 2 - Best Practice & Illustrative Case StudyPDF
  Managing Operational Risk in Foreign Exchange Activities Part 2 - Best Practice & Illustrative Case Study Glossary/IndexPDF
Review And Test