Risk-Adjusted Performance Measurement (RAPM) Training Course

Introduction
In an era of increasing regulatory scrutiny and financial complexity, institutions must not only pursue profitability but also assess performance relative to the risks taken. The Risk-Adjusted Performance Measurement (RAPM) Training Course is designed to equip finance professionals with the tools and methodologies necessary to evaluate investment performance through a risk-aware lens. By integrating concepts such as Economic Value Added (EVA), Risk-Adjusted Return on Capital (RAROC), and Sharpe Ratios, this course provides a solid foundation for optimizing decision-making, capital allocation, and incentive structures in financial institutions.

Delivered over five comprehensive days, this training blends financial theory with practical tools to measure and enhance performance across portfolios, business units, and institutions. Participants will explore the relationship between risk, return, and value creation using quantitative techniques and real-world case studies. Emphasis is placed on aligning performance metrics with organizational objectives, risk appetite, and regulatory expectations, making this course essential for asset managers, bank executives, and central bankers involved in risk and performance oversight.

Duration: 5 days

Target Audience:

  • Risk and performance analysts in banks and financial institutions
  • Asset and portfolio managers
  • Central bank and treasury department professionals
  • Investment officers and capital planning teams
  • Internal auditors and financial controllers

Course Objectives:

  • Understand the core principles of risk-adjusted performance measurement
  • Apply RAPM tools to evaluate portfolios, products, and business units
  • Align performance metrics with risk appetite and regulatory frameworks
  • Enhance capital allocation, pricing, and profitability analysis
  • Build and interpret dashboards for senior management reporting

Course Modules

  1. Introduction to Risk-Adjusted Performance Measurement (RAPM)
  • Importance of risk-adjusted metrics in modern finance
  • Limitations of traditional performance measures
  • Overview of RAPM frameworks and applications
  • Strategic role of RAPM in capital planning and governance
  • Regulatory context and international best practices
  1. Foundations of Risk and Return Measurement
  • Understanding financial return components
  • Measuring volatility and downside risk
  • Introduction to performance ratios (Sharpe, Treynor, Sortino)
  • Benchmarking and peer comparison
  • Role of risk preferences in evaluating returns
  1. Economic Capital and Risk Attribution
  • Concept of economic capital in risk management
  • Allocating risk to business units and portfolios
  • Risk attribution models and tools
  • Using capital charges in performance evaluation
  • Integrating economic capital into planning cycles
  1. RAROC and EVA Frameworks
  • Calculating Risk-Adjusted Return on Capital (RAROC)
  • Economic Value Added (EVA) and value-based management
  • Setting performance thresholds and hurdle rates
  • Linking RAROC to product pricing and customer profitability
  • Case studies on RAROC implementation
  1. Portfolio-Level RAPM Techniques
  • Evaluating portfolio performance under different risk metrics
  • Active vs. passive management impact on RAPM
  • Attribution of excess return and active risk
  • Diversification benefits and risk budgeting
  • Incorporating liquidity and credit risk into performance
  1. Business Unit and Product Performance Assessment
  • Translating RAPM metrics to business lines and products
  • Revenue vs. capital efficiency comparisons
  • Managing underperforming units through RAPM insights
  • Incentivization based on risk-adjusted metrics
  • Internal transfer pricing and cost of capital allocation
  1. Integrating RAPM into Governance and Decision-Making
  • Role of ALCO, risk committees, and senior management
  • Embedding RAPM in internal performance scorecards
  • Aligning RAPM with risk appetite frameworks
  • Enhancing strategic planning with risk-return insights
  • Reporting RAPM to external stakeholders and regulators
  1. Practical Case Studies and Toolkits
  • Hands-on exercises using Excel, Python, and BI tools
  • Simulation of performance measurement under stress scenarios
  • Real-world RAPM dashboards and reporting templates
  • Designing and interpreting RAPM reports for the board
  • Final group project: RAPM implementation plan presentation

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

Risk-adjusted Performance Measurement (rapm) Training Course in Myanmar
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