Introduction to Securities Operations and Risk Management

Course Objectives

The Introduction to Securities Operations and Risk Management course is designed to equip participants with a foundational understanding of how securities markets function and to highlight the crucial role that operations and risk management play in ensuring seamless, compliant, and efficient trade execution. The course begins by introducing the different types of securities—such as equities, bonds, and derivatives—and familiarizes learners with the key participants involved, including issuers, investors, and intermediaries.

Participants will gain comprehensive insights into the complete life cycle of a securities trade, encompassing trade execution, clearing, and settlement processes. They will also explore the core responsibilities of securities operations, with a particular focus on managing back-office functions and ensuring adherence to regulatory requirements.

A significant component of the course is dedicated to understanding the various risks associated with securities operations. These include operational risks like errors, fraud, and system failures; market risks such as price volatility and liquidity challenges; and settlement risks arising from potential counterparty defaults. The course further delves into techniques used to manage these risks, including the implementation of internal controls, automation, and auditing mechanisms.

In addition, participants will explore the regulatory framework that governs securities operations in India, emphasizing the roles of SEBI, RBI, and compliance with anti-money laundering (AML) and know your customer (KYC) norms. The course concludes with an exploration of emerging technologies—such as blockchain, artificial intelligence (AI), and robotic process automation (RPA)—and their transformative impact on securities operations in a globally interconnected financial landscape.

Pedagogy

The course will be delivered using a mix of engaging instructional methods designed to ensure both conceptual clarity and practical application:

1. Concept-Based Lectures: Short, structured lessons focusing on key concepts and industry terminology.
2. Case Studies and Real-World Scenarios: To illustrate how securities operations and risk management are handled in actual financial institutions.
3. Interactive Discussions: Group discussions and Q&A sessions to foster deeper understanding and clarify doubts.
4. Visual Aids: Use of process flowcharts, lifecycle diagrams, and infographics for visual learning.
5. Tech Demonstrations: Insights into how technology like blockchain and RPA is applied in back-office operations.
6. Regulatory Simulations: Exercises and examples based on SEBI, RBI, and global compliance practices.

Programme Highlights

• Comprehensive Coverage: End-to-end understanding of securities operations from trade execution to settlement.
• Risk-Focused Approach: Learn to identify, assess, and mitigate key operational, market, and settlement risks.
• Hands-On Learning: Practical illustrations and workflow-based learning to simulate real-world scenarios.
• Regulatory Integration: In-depth coverage of compliance frameworks including AML, KYC, and the role of depositories and custodians.
• Technology Insights: Exposure to cutting-edge technologies like blockchain, AI, RPA, and algorithmic trading.
• Industry-Relevant Skills: Equips learners with the operational knowledge and risk awareness essential for careers in capital markets, investment operations, or compliance.