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Institute For Oil & Gas Training
OGI-1182 New

Hedging & Derivatives Governance & Policy Design Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
12 Oct 2026
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Overview

The Hedging & Derivatives Governance & Policy Design Training Course from Institute For Oil & Gas Training develops the governance, control and treasury capabilities required to manage Hedging & Derivatives across complex oil and gas businesses. The course addresses the need for disciplined hedging policy and mandate structures that align commodity, foreign exchange, interest rate and liquidity risk management with board approved limits and defined corporate objectives.

Oil and gas organisations operate across markets exposed to crude oil, natural gas, refined products, foreign exchange, interest rates and financing costs. Price volatility and interconnected financial exposures create a requirement for structured treasury governance rather than ad hoc derivative activity. Effective hedging programmes require clear authority, documented risk appetite, appropriate instruments, controlled execution and reliable monitoring. Without a properly designed framework, derivative transactions can create control weaknesses, inconsistent decision making, excessive counterparty exposure and difficulties in financial reporting.

This course focuses on the governance architecture surrounding corporate hedging programmes. Participants examine how to design and implement a hedging policy and mandate that establishes permitted instruments, approved purposes, delegated authorities, board approved limits, escalation procedures and reporting responsibilities. The programme also addresses speculative trading prohibition, ensuring that derivatives are used for defined risk management purposes rather than uncontrolled market positioning.

The course provides practical guidance on counterparty selection, credit exposure management and the contractual infrastructure supporting derivative transactions. Participants examine ISDA agreements and CSA arrangements, collateral considerations, transaction documentation and responsibilities between treasury, finance, risk, legal and senior management functions.

Independent valuation is another core component. Participants explore controls for establishing reliable derivative valuations, validating external pricing, resolving valuation differences and maintaining appropriate segregation between transaction execution and valuation activities. The course also examines hedge effectiveness monitoring, position reporting and derivative disclosure requirements so that management receives consistent information about exposures, performance, limits and compliance.

The programme is designed for organisations seeking stronger governance over commodity and financial derivatives. It connects treasury policy with operational controls, accounting requirements, legal documentation, risk reporting and board oversight. The emphasis remains on practical corporate application within oil and gas environments, where treasury decisions influence cash flow protection, financing exposure, earnings volatility and financial resilience.

Institute For Oil & Gas Training delivers the course through practical scenarios that reflect the governance challenges faced by upstream, midstream, downstream and integrated energy businesses. Participants develop a structured understanding of how policies are designed, approved, implemented, monitored and reviewed. The course also demonstrates how treasury governance interacts with finance, risk management, procurement, commercial operations, legal functions and executive management.

The programme addresses both strategic and operational requirements. At strategic level, participants learn how to establish governance principles and risk boundaries that support corporate objectives. At operational level, they examine transaction controls, confirmation processes, valuation procedures, collateral management, position reporting and compliance monitoring. This integrated approach supports stronger control over derivative activities from policy design through transaction execution and reporting.

The course also considers the importance of clearly defined accountability. A successful hedging programme requires responsibilities to be allocated across the front, middle and back office functions, with appropriate oversight from senior management and the board. Participants examine approval workflows, segregation of duties, exception management and escalation processes that help maintain control as market conditions change.

By completing the course, participants gain a practical framework for strengthening Hedging & Derivatives governance, developing fit-for-purpose policies and establishing monitoring arrangements that support transparent and controlled treasury operations.

Objectives

  • Develop a robust hedging policy and mandate for oil and gas treasury operations

  • Establish appropriate board approved limits for derivative activities and risk exposures

  • Define clear governance structures for commodity, foreign exchange and interest rate hedging

  • Implement an effective speculative trading prohibition within corporate treasury policies

  • Establish disciplined counterparty selection and credit exposure controls

  • Understand the governance requirements associated with ISDA agreements and CSA documentation

  • Strengthen transaction approval, confirmation and settlement controls

  • Establish reliable independent valuation procedures for derivative positions

  • Develop effective hedge effectiveness monitoring processes

  • Improve position reporting and management information for treasury and senior leadership

  • Strengthen escalation procedures for policy breaches and limit exceptions

  • Integrate treasury governance with finance, risk, legal and commercial functions

  • Improve understanding of derivative accounting and disclosure requirements

  • Establish appropriate documentation standards for hedging decisions and transactions

  • Strengthen board and executive oversight of derivative programmes

  • Improve the consistency and transparency of treasury risk reporting

  • Develop practical controls for maintaining a controlled derivative portfolio

  • Support stronger alignment between hedging activities and corporate risk appetite

Training methodology

Institute For Oil & Gas Training uses an applied corporate learning methodology focused on real-world treasury governance challenges. The course combines structured presentations with case studies, scenario analysis, group exercises, policy design workshops and practical decision-making activities.

Participants work through oil and gas treasury scenarios involving commodity price exposure, foreign exchange risk, interest rate movements, counterparty exposure and derivative portfolio governance. These scenarios demonstrate how policy decisions affect transaction authority, risk limits, reporting, valuation and financial control.

Case studies examine weaknesses such as unclear delegated authority, inadequate counterparty controls, excessive position concentrations, incomplete documentation and ineffective monitoring. Participants assess the control problem, identify the governance requirement and develop an appropriate response.

Policy design exercises provide direct experience in developing a hedging policy and mandate. Participants consider permitted instruments, approved objectives, board approved limits, reporting thresholds, prohibited activities, approval responsibilities and escalation procedures.

Simulation exercises focus on treasury decision making under changing market conditions. Participants review hypothetical positions, exposure reports and limit information before determining the appropriate governance response. This strengthens the ability to distinguish legitimate hedging activity from activity that breaches policy or introduces inappropriate risk.

Group exercises address counterparty selection and contractual governance. Participants assess counterparty criteria, credit considerations, documentation requirements and collateral arrangements before developing a controlled process for approving derivative relationships.

Practical valuation exercises examine independent valuation controls and valuation verification. Participants review valuation information, identify potential discrepancies and consider how treasury teams should document valuation controls and escalation procedures.

The delivery approach also connects operational treasury controls with financial reporting. Participants examine how hedge documentation, effectiveness monitoring and derivative disclosure requirements interact with broader finance processes.

The methodology is designed to encourage direct application rather than theoretical discussion. Each exercise links governance principles to decisions encountered by corporate treasury, finance, risk and commercial teams.

Organisational impact

A structured Hedging & Derivatives governance framework gives organisations stronger control over financial risk and treasury decision making. Clear policies establish the boundaries within which treasury teams operate and reduce uncertainty over who can approve, execute, monitor and report derivative transactions.

A well-designed hedging policy and mandate improves consistency across treasury operations. Permitted instruments, defined objectives, board approved limits and delegated authorities provide a common control framework for different treasury teams and business units.

Stronger counterparty selection processes improve control over credit exposure. Organisations establish documented criteria for assessing derivative counterparties, monitoring exposure and escalating changes in credit conditions.

Clear speculative trading prohibition supports disciplined use of derivatives. Treasury activity remains connected to defined underlying exposures and approved corporate risk objectives rather than uncontrolled market positioning.

Improved ISDA agreements and CSA governance strengthens the contractual foundation supporting derivative activity. Treasury, legal and finance teams gain clearer responsibilities for documentation, collateral arrangements, confirmations and ongoing contractual management.

Independent valuation controls improve the reliability of derivative portfolio information. Organisations strengthen price verification, valuation reconciliation and exception management while reducing reliance on uncontrolled valuation inputs.

Effective hedge effectiveness monitoring supports stronger communication between treasury and financial reporting teams. Organisations can establish consistent processes for monitoring designated hedges, documenting results and identifying issues requiring investigation.

Improved position reporting gives management clearer visibility of derivative exposures, utilisation of limits, maturity profiles, counterparty concentrations and portfolio movements. This strengthens decision making at treasury, executive and board levels.

The course also supports stronger compliance and reporting processes. Better documentation and control structures provide a stronger foundation for meeting applicable derivative disclosure requirements and maintaining an auditable record of treasury decisions.

At an operational level, organisations benefit from clearer segregation of duties, more consistent approval processes, stronger exception management and improved coordination between front office, middle office and back office functions.

Personal impact

Participants develop practical expertise in corporate Hedging & Derivatives governance that supports treasury, finance, risk and commercial responsibilities.

They learn how to translate corporate risk appetite into a practical hedging policy and mandate. This includes defining permitted instruments, limits, authorities, prohibited activities and reporting requirements.

Participants strengthen their ability to evaluate derivative governance arrangements and identify weaknesses in existing controls. They gain a structured approach to reviewing approval processes, counterparty management, valuation controls and reporting systems.

The programme improves practical understanding of ISDA agreements and CSA arrangements, enabling participants to engage more effectively with legal, banking and treasury counterparties.

Participants also develop stronger independent valuation and hedge effectiveness monitoring capabilities. They learn how valuation information should be controlled, reviewed and escalated when discrepancies arise.

Improved position reporting skills help participants communicate derivative exposures clearly to treasury management, finance leadership, risk committees and boards.

The course supports career development for professionals working in treasury, financial risk management, corporate finance, accounting and commercial risk. Participants gain a broader understanding of how derivative governance connects financial markets activity with corporate policy, accounting and executive oversight.

Who should attend

  • Treasury Managers who design and oversee corporate hedging programmes and treasury controls

  • Group Treasurers responsible for enterprise-wide financial risk management and policy governance

  • Treasury Analysts who monitor derivative positions, exposures and limit utilisation

  • Financial Risk Managers responsible for market, commodity, foreign exchange and interest rate risk

  • Finance Managers involved in derivative accounting, reporting and financial controls

  • Financial Controllers responsible for valuation, reconciliation and derivative disclosure processes

  • CFO Office Professionals supporting executive oversight of financial risk and treasury governance

  • Risk Managers responsible for enterprise risk frameworks and exposure monitoring

  • Commodity Risk Managers managing oil, gas and refined product exposures

  • Commercial Managers involved in pricing, contracting and commodity risk decisions

  • Legal and Contract Professionals supporting ISDA documentation and derivative agreements

  • Internal Auditors reviewing treasury governance, controls and derivative activities

  • Compliance Professionals monitoring policy adherence and reporting requirements

  • Middle Office Professionals responsible for independent risk monitoring and position reporting

  • Senior Treasury Professionals responsible for policy implementation and governance improvement

  • Finance Directors and Treasury Directors overseeing corporate financial risk programmes

Course outline

This module establishes the governance foundations for a controlled corporate hedging programme. It focuses on translating corporate risk appetite into a documented hedging policy and mandate with defined responsibilities, authorities, limits and prohibited activities. Participants examine the governance relationship between the board, executive management, treasury, risk, finance, legal and commercial functions.

  1. ISO 31000 Risk Management

    • Provides recognised principles and guidelines for establishing a structured risk management approach.

    • Supports the integration of risk governance into organisational decision making.

    • Provides a useful framework for connecting hedging policy with corporate risk management processes.

    Learning Outcomes

    • Design a structured hedging policy and mandate

    • Define appropriate governance responsibilities

    • Establish board approved limits and delegated authorities

    • Distinguish approved hedging from prohibited speculative activity

    • Develop effective escalation and exception procedures

    • Align treasury governance with enterprise risk management

This module focuses on the contractual and credit governance required to establish controlled derivative relationships. Participants examine counterparty selection, exposure monitoring, ISDA agreements and CSA arrangements, collateral requirements and documentation controls.

  1. ISDA Master Agreement

    • Provides a widely recognised contractual framework for documenting over-the-counter derivative transactions.

    • Establishes standardised provisions governing transactions between counterparties.

    • Supports consistent management of contractual rights, obligations and close-out arrangements.

    Learning Outcomes

    • Establish a structured counterparty selection process

    • Assess derivative counterparty exposure

    • Understand the governance role of ISDA agreements and CSA

    • Strengthen collateral and margin controls

    • Improve contractual documentation management

    • Establish appropriate counterparty escalation procedures

This module develops practical controls for derivative valuation and hedge effectiveness monitoring. Participants examine independent valuation principles, price verification, valuation reconciliation, hedge documentation and monitoring procedures that support reliable financial and risk information.

  1. IFRS 9 Financial Instruments

    • Establishes accounting requirements for financial instruments, including hedge accounting.

    • Provides requirements relevant to recognition, measurement and hedge accounting relationships.

    • Supports structured documentation and monitoring of qualifying hedging relationships.

    Learning Outcomes

    • Establish independent valuation controls

    • Improve derivative price verification

    • Develop effective hedge effectiveness monitoring

    • Strengthen hedge documentation

    • Identify and escalate valuation discrepancies

    • Improve coordination between treasury and financial reporting teams

This module examines the information, reporting and control processes required to maintain visibility over derivative positions. Participants explore position reporting, exposure aggregation, limit monitoring, transaction records, regulatory reporting responsibilities and derivative disclosure requirements.

  1. UK EMIR

    • Provides a regulatory framework for over-the-counter derivatives and related reporting and risk mitigation requirements in the UK.

    • Includes requirements relevant to derivative reporting and risk management processes.

    • Provides an important reference point for organisations with activities within its scope.

    Learning Outcomes

    • Develop effective position reporting structures

    • Improve exposure aggregation and limit monitoring

    • Establish appropriate derivative records

    • Understand key regulatory reporting responsibilities

    • Strengthen derivative disclosure processes

    • Produce management information suitable for senior treasury and board oversight

This module integrates the governance, contractual, valuation and reporting principles covered throughout the programme. Participants develop an integrated control framework for maintaining policy compliance, monitoring derivative activity and continuously improving treasury governance.

  1. COSO Internal Control Framework

    • Provides a recognised framework for designing and evaluating internal controls.

    • Supports control environment, risk assessment, control activities, information and monitoring.

    • Provides a structured basis for strengthening governance over financial and treasury processes.

    Learning Outcomes

    • Integrate derivative governance controls into treasury operations

    • Strengthen segregation of duties

    • Establish effective policy compliance monitoring

    • Improve control testing and exception management

    • Develop stronger management and board reporting

    • Establish a continuous improvement approach to Hedging & Derivatives governance

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. The certificate confirms completion of the programme subject to meeting the required attendance requirement.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,000

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,000

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,000

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,000

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does the Hedging & Derivatives Governance & Policy Design Training Course cover?

The course covers hedging policy and mandate design, board approved limits, speculative trading prohibition, counterparty selection, ISDA agreements and CSA, independent valuation, hedge effectiveness monitoring, position reporting and derivative disclosure requirements.

Who should attend this course?

The programme is designed for treasury managers, group treasurers, financial risk managers, finance managers, financial controllers, commodity risk professionals, internal auditors, compliance professionals, legal professionals and senior treasury and finance personnel.

How is the course delivered?

Institute For Oil & Gas Training uses corporate case studies, practical scenarios, group exercises, policy design activities, valuation exercises and treasury governance simulations focused on real-world oil and gas risk management requirements.

What will participants learn about hedging policies?

Participants learn how to structure a hedging policy and mandate, establish permitted instruments, define board approved limits, allocate delegated authorities, implement speculative trading prohibition and establish escalation and monitoring procedures.

What certificate is provided after the course?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course, subject to meeting the required attendance requirement.

Next: 12 Oct 2026

4 dates available

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