PROGRAM OFFERINGS FOR 2018

NEURAL INTERNATIONAL PARTNERS

© NEURAL 2018
110 Wall Street, New York City, NY 10005 1
 Introduction to NEURAL
The NEURAL Group includes NEURAL INTERNATIONAL PARTNERS located at 110 Wall Street, New York City and NEURAL
TECHNOLOGIES as well as NEURAL CAPITAL
Our work and product offerings focus on:
► RISK Management Consulting
► Quantitative Trading Strategies for the global financial markets
► Alternative Investments particularly Hedge Funds
► Advising early stage and start up companies on business strategy and capital raising
Our Partners & Principals have significant worldwide experience in:
► Global Risk Management – Market, Credit, Operational, Counterparty and Liquidity
► Derivative Products from vanilla to the exotic
► Proprietary Trading
► Artificial Intelligence and Neural Networks
► Financial Engineering and Quantitative Finance
► High Frequency Trading
► Portfolio Management & Performance Evaluation
► Alternative Investments – Hedge Funds, Private Equity and Venture Capital
► Multi-Asset classes – Fixed Income, Commodities, Currencies, Equities & Hybrids
► Financial Markets Education
The Partners & Principals of our firm have a collective experience of over 100 years, gained at global banks, hedge funds and strategy consulting
firms in the major international financial centers - New York, London, Mumbai, Hong Kong, Singapore, Bahrain, Dubai, Sydney and Riyadh
They have earned a PhD or a Post Doctoral Fellowship or a dual Masters degree from leading universities of the world such as Columbia
University, Stern School, New York University, London School of Economics, the Delhi School of Economics, IIT Mumbai and IIM Ahmedabad

© NEURAL 2018 2
 Our track record in Financial Markets and Analytics Education
► Our Partners & Principals have conducted over 450 training programs during the past ten years for major
Investment and Commercial Banks, Corporate Treasuries, the Reserve Bank of India and for finance
professionals as well as students from around the world
► We have taught in the following countries and financial centers:
 New York London India Switzerland
 Singapore Dubai Bahrain Saudi Arabia
 Lebanon Muscat Riyadh Qatar
 Egypt Ghana Greece Hong Kong
► Our course offerings are tailor-made for all levels of management representing the senior and middle level
executives as well as fresh hires
► Our Instructors have worked at bulge bracket investment banks or major hedge funds in key financial
centers such as New York, London, Mumbai, Hong Kong, Singapore, Sydney and Zurich and have PhDs or
Masters degrees from some of the world’s top universities
► Each Instructor comes with 20+ years of experience individually
► The collective experience of our Instructors is nearly 100 years
► Thank you for taking the time to go through our Program Offerings for 2018

© NEURAL 2018 3
 Our Program Offerings combine Flexibility with Excellence
► We offer courses at Basic, Intermediate or Advanced Levels depending upon Participants’ knowledge levels
► The courses can be tailor made for different durations depending upon the Clients’ needs
► We teach In-house or in Management Development Programs
► Our Instructors bring real life, practical examples to the class room based upon their extensive banking experience
► We provide a solid grounding in theory, enable participants to build Excel based models and combine this with case
studies and real life examples of what actually happens in the industry

A. FINANCIAL MARKETS
# COURSE NAME SUGGESTED DURATION
1 Fundamentals of Fixed Income Markets 2 days
2 Fixed Income Markets - Intermediate level 2 days
3 Advanced Fixed Income Markets 2 days
4 Foreign Exchange Markets (including Bourse Game) 2 - 4 days
5 Swaps Markets 1 - 2 days
6 Equity Markets 1 - 2 days
7 Commodity Markets Minimum 2 days
8 Mortgage Backed Securities 2 days
© NEURAL 2018 4
 B. RISK MANAGEMENT
# COURSE NAME SUGGESTED DURATION
9 Fundamentals of Risk Management 2 days
10 Market Risk 2 days
11 Credit Risk 2 days
12 Counterparty Credit Risk 2 days
13 The Cutting Edge of Operational Risk Management 4 days
14 Liquidity Risk 2 days

C. INSURANCE & ACTUARIAL SCIENCES

# COURSE NAME SUGGESTED DURATION
15 Applied Financial Mathematics 2 days
16 Applied Financial Statistics 2 days
17 Insurance and Risk Management 3 days

© NEURAL 2018 5
 D. FINANCIAL ENGINEERING
# COURSE NAME SUGGESTED DURATION
18 Deep Insights into Derivatives 2 - 3 days
19 Structured Products & Financial Engineering Minimum 2 days
20 Exotic Options Minimum 2 days
21 Credit Derivatives Minimum 2 days
22 Securitization & Collateralized Debt Obligations Minimum 2 days

E. INVESTMENT MANAGEMENT
# COURSE NAME SUGGESTED DURATION
23 Portfolio Management 2 days
24 Alternative Investments 2 days

© NEURAL 2018 6
 F. REGULATORY & COMPLIANCE
# COURSE NAME SUGGESTED DURATION
25 Basel III and III+ 2 days
26 IFRS 2 days
27 Anti Money Laundering 2 days

G. CORPORATE FINANCE and M&A

# COURSE NAME SUGGESTED DURATION
28 Advanced Financial Modeling & Corporate Valuation 2 days
29 Mergers & Acquisitions and Corporate Restructurings 2 days

H. BUSINESS ANALYTICS and BIG DATA

# COURSE NAME SUGGESTED DURATION
30 Certificate program in Business Analytics 40 days or 320 hours
31 Certificate program in Big Data Analytics 55 days or 440 hours

© NEURAL 2018 7
 A. FINANCIAL MARKETS

# COURSE NAME SUGGESTED DURATION

1 Fundamentals of Fixed Income Markets 2 days
2 Fixed Income Markets - Intermediate Level 2 days
3 Advanced Fixed Income Markets 2 days
4 Foreign Exchange Markets (including Bourse Game) 2 - 4 days
5 Swaps Markets 1 - 2 days
6 Equity Markets 1 - 2 days
7 Commodity Markets Minimum 2 days
8 Mortgage Backed Securities 2 days
© NEURAL 2018 8 8
 1. Fundamentals of Fixed Income Markets
A. OVERVIEW OF FIXED INCOME MARKETS D. THE MATHEMATICS OF BOND PRICING and BOND
► Treasury Bonds SENSITIVITY MEASURES
 US Treasuries ► BOND PRICING
 Indian Government Securities (G-Secs)  Discount rates and discount factors
► Corporate bonds  Yield to maturity
► High Yield Bonds  Internal Rate of Return
► Emerging Market Bonds  Dirty and Clean Prices
► Fixed and Floating Rate Bonds ► BOND SENSITIVITY MEASURES
► Zero Coupon and Discount bonds  Price yield relationship
 Duration
B. THE PRACTICAL ASPECTS OF A BOND − Macaulay Duration
ISSUANCE PROGRAM − Modified Duration
► Bond Auctions − Dollar Duration
► Bond Syndication  Convexity
► Road Shows and Book Building Exercise
E. BUILDING A UNIVERSAL BOND PRICER IN EXCEL
C. MONEY MARKET SECURITIES ► Application of Bond Mathematics to real world Fixed Income Markets
► Call Money Market, ► Hands-on financial modeling using first-principles to compute the
► CBLO Price, Duration and Convexity of a real-life US Treasury Bond
► T Bills, CPs and CDs ► Compare results with those from Bloomberg to ensure perfect
► Statutory reserves – CRR & SLR accuracy of computations
► Liquidity Adjustment Facility ► Similar exercises will be conducted for UK Gilts and other Bonds
► Interbank Repos

© NEURAL 2018 9
 2. Fixed Income Markets - Intermediate level

A. YIELD CURVE DYNAMICS and THE TERM C. INTRODUCTION TO FIXED INCOME DERIVATIVES
STRUCTURE OF INTEREST RATES ► Vanilla Interest Rate Swaps
► Understanding the Term Structure of Interest rates and ► Caps, Floors and Collars
the changes in Yield Curves ► Accrediting and Amortizing Swaps
 Yield Curve Shapes ► Basis Swap
 How Yield Curve shapes change over time ► Total Return Swaps
 Classical theories of Term Structure ► Credit Default Swaps
− Pure Expectations theory ► Interest Rate Futures
− Pure Risk Premium Theory ► Forward Rate Agreements
− Market Segmentation Theory ► Equity and Commodity Linked Notes
− Biased Expectations Theory
D. CASE STUDIES
► Types of Yield Curves: Default Situations in India:
 Coupon or Par Yield Curve ► Amtek Auto Domestic Bond Default and its impact on the Indian
 The Zero Coupon Curve or Spot Yield Curve Bond Markets
 The Forward Yield Curve Distressed Situations of Indian borrowers:
B. HYBRID BOND STRUCTURES ► Vedanta Resources International Bonds – Consequences of large
► Practical exercise on pricing a Hybrid Bond for ONGC scale borrowing to fund acquisitions
where coupons were guaranteed by Republic of India and Distressed situations in Global Bond Markets:
Principal was guaranteed by Asian Development Bank ► The Greek Financial Crisis and changing yields on Greek
► Brady Bond structures Government Bonds

© NEURAL 2018 10
 3. Advanced Fixed Income Markets
A. BUILDING YIELD CURVES D. CASE STUDY: LONG TERM CAPITAL MANAGEMENT
► Coupon or Par Yield Curve
► A blow up at the world’s premier Fixed Income Hedge Fund
► The Zero Coupon Curve or Spot Yield Curve
► The Forward Yield Curve ► Participants will be expected to evaluate the factors leading to the
► BOOTSTRAPPING LTCM disaster
 Constructing a Zero Coupon curve from a Par yield curve ► Impact of an implosion in one fixed income market (Russia) on
 Constructing a Forward curve from a Par curve fixed income markets elsewhere
B. STRATEGIES for FIXED INCOME PORTFOLIO ► Impact of Leverage in Relative Value Fixed Income Trading
MANAGEMENT E. STRUCTURED FIXED INCOME AND ITS ROLE IN THE
► Buy and Hold
► Bullets and Barbells 2007-2008 FINANCIAL CRISIS
► Laddering ► Collateralized Debt Obligations (CDOs)
► Immunization  CDO Tranches and their Risks
► Carry & Roll Down strategy
 Cash Flow CDOs
► Relative Value Arbitrage
► Spread Trading: Intra curve and Inter curve  Synthetic CDOs
 CDO squared
C. MANAGING and HEDGING FIXED INCOME ► Origins of the crisis in the sub-prime mortgage market of the USA
PORTFOLIOS in EMERGING MARKETS ► Spread of the contagion worldwide and impact on global markets
► Hedging Market Risk ► Role of Credit Rating Agencies in the crisis
► Hedging Credit Risk
► The Bear Stearns and Lehman Brothers crisis
► Spread Compression and Widening
► Rich / Cheap Analysis ► The AIG disaster & role of Credit Derivatives
► Trading a High Yield or Emerging Markets debt portfolio ► Quantitative Easing and money printing to stabilize financial
► Impact of Downgrades on Bond Portfolios markets & global economy
► Impact of Defaults

© NEURAL 2018 11
 4.A. Foreign Exchange Markets
A. INTRODUCTION D. CROSS RATES
► What is Foreign Exchange? ► How to compute Spot Cross Rates
► A Global Market Place ► How to trade Crosses
 24 hour trading ► How to compute Forward Cross Rates
 Major Players
 A Zero-Sum Game E. CURRENCY FUTURES
► Structure of the Foreign Exchange Market ► Exchange Traded Currency Futures
► FX Terminology ► Hedging with Currency Futures
► Market Practices
► Notation for Quoting FX Rates F. CURRENCY OPTIONS
B. THE SPOT MARKET ► The Garman Kohlagen model for Currency Options
► Spot Markets ► Trading Strategies using Currency Options
► Value Dates ► Hedging with Currency Options
► Market Making
► Position Keeping via the Blotter
► Position Limits
► Stop Loss Limits
► VAR and Risk Limits
C. THE FORWARDS MARKET
► Calculating Forwards from Spot Rates &
Interest Rates
► Interest Rate Parity Theorem
► Covered Interest Arbitrage
© NEURAL 2018 12
 4.B. The Bourse Game
COMPLEXITY & SPEED FEATURES
LEVEL 1 ► Start with only one currency pair in the SPOT market to understand the mechanism of quoting
prices, market making and bid-offer spreads
► Increase the number of currency pairs
► Increase the speed of market moves
LEVEL 2 ► Add FORWARDS to Spot Trading
► Start with only one currency pair in the spot and forwards market to understand the
mechanism of how forward rates are derived from spot rates and interest rate differentials
► Demonstrate the Interest Rate Parity theorem and potential for covered interest arbitrate
► Introduce more currency pairs with both spot and forwards trading
LEVEL 3 ► Add OPTIONS to FORWARDS and SPOT Trading
► Star with one currency pair to provide a good understanding of how Spot, Forwards and
Options work together
► Understand how the Delta and Gamma of the Currency Options work
► Understand Time Decay and impact of Theta
► Understand impact of Volatility on Currency Options
LEVEL 4 ► All Currency products: SPOT, FORWARDS and OPTIONS
► Multiple Currency pairs
► Higher speed to market moves

© NEURAL 2018 13
 5. Swaps Markets
A. THE SWAPS MARKETS D. GENERIC FORMULAS FOR VALUING SWAPS
► The history and growth of the Swaps market ► Interest Rate Swap
► Comparative Advantage / Quality Spread Differential ► Deferred Swap
► Vanilla Interest Rate Swap ► Amortizing or Accreting Swaps
► Currency Swaps
B. CASE STUDY: THE WORLD’s FIRST CURRENCY SWAP
► Differential Swaps
► The IBM-WORLD BANK, US$-Swiss Franc-Deutsche Mark SWAP
► Commodity Swaps
► Driving Forces and Market Conditions behind the Swap
► Swaps with variable Quantities and Prices
► Outstanding Debt of IBM
► Swaptions
► World Bank’s new Bond issue
► Total Return Swaps
► Structure of the world’s first cross currency swap
► Cash flows of the Cross Currency Swap E. CASE ANALYSIS: HEDGING TRIDENT CORPORATION’S
C. VALUATION AND PRICING OF SWAPS FLOATING RATE LOANS WITH
► Construction of Fixed Leg and Computation of Fixed Payments (1). An Interest rate Swap and (2). A Cross Currency Swap
► Construction of the Zero and Forward Swap Curves ► Trident’s Floating Rate Loans
► Building the Short end of the Swaps curve from LIBOR Rates ► Cash Flows and Cost of Trident’s Loan
► Bootstrapping Methodology ► Swapping Trident’s Floating Rate Loan into Fixed Rate
► Building the Long end of the Swaps curve from Par Swap Rates ► Trident’s Cash Flows and Costs after Interest Rate Swap
► Deriving the LIBOR Forward Curve ► Swapping Trident’s US$ Loan into Swiss Francs
► Interpolation Methods ► Trident’s Cash Flows after Currency Swap
► Valuing the Par Swap Floating Rate Cash Flows ► Unwinding Trident’s Currency Swap
► Valuation of the Interest Rate Swap ► Measuring the Gain or Loss on the Swaps
► Practical Example of Valuing an Interest Rate Swap F. OTHER INSTRUMENTS FOR HEDGING INTEREST RATE RISK
► Caps
► Floors
► Collars

© NEURAL 2018 14
 6. Equity Markets
A. EQUITY BUSINESS REVIEW E. EQUITY VALUATION
► Role of bank ► Alpha, beta and the CAPM
► Market roles
► Valuation models
► Market influences
► Market dynamics
F. EQUITY SWAPS OVERVIEW
B. EQUITY PRODUCTS
► What is an equity swap?
► Shares
► Equity swap terms
► ADRs
► Equity swap cash flows
► Convertible bonds ► Equity swaps variations
► Other products
► Dark pools/crossing networks G. EQUITY SWAPS: USES AND STRATEGIES
► Opportunities and exposure
C. INVESTMENT BANKING BUSINESS ► Strategies
► Underwriting
H. OVERVIEW OF VOLATILITY IN EQUITY MARKETS
► Advising
► What drives volatility?
D. PRIVATE EQUITY ► Estimating volatility
► LBO
► Venture capital

© NEURAL 2018 15
 7. Commodity Markets
A. OVERVIEW OF COMMODITIES
► History of Commodities Trading
► Major Commodity Indices
► Commodities as an Investment Asset
B. COMMODITY TRADING EXCHANGES
► Shift towards China
► Financialization of Commodity Trading
► London Metals Exchange
► New York Mercantile Exchange
(NYMEX)
► Commodities Exchange (COMEX)
► Indian Commodity Markets
C. THE METALS MARKETS
► Precious Metals
 Gold
 Silver
 Platinum
► Base Metals
 Copper
 Aluminum
 Zinc
© NEURAL 2018
D. ENERGY MARKETS F. COMMODITY SWAPS
► Crude Oil & Refinery Products ► What is a Commodity swap?
 Crack or Refinery Spreads ► Commodity swap terms
 Hedging Refinery Margins with Crack
Spreads ► Commodity swap cash flows
► Natural Gas ► Commodity swaps variations
► Electricity Markets G. COMMODITY MARKETS RISKS &
 Spark Spreads DISASTERS
 Modeling Electricity Markets ► Amaranth Hedge Fund blow up – Natural
 Valuation of Long Dated Electricity Deals Gas
̶ Load Serve Deals
► Sumitomo Corporation disaster – Copper
̶ Tolling Deals Trading
► Renewable Energy ► Metallgesellschaft – Commodities blow up
 Wind
 Solar ► The Bankruptcy of Enron Corporation
 Hydro ► Williams Energy – near bankruptcy
► Coal Markets
E. FORWARD CURVES IN COMMODITY
MARKETS
► Backwardation versus Contango
► Trading Calendar spreads
► Commodity swap cash flows
► Commodity swaps variations
16
 8. Mortgage Backed Securities
A: SECURITIZATION and MORTGAGE BACKED SECURITIES
► Securitization: The process of converting Loans into Securities
► The main Asset classes behind Securitization
► The types of Mortgage Backed Securities
► Differences between Fixed Income Bonds and Mortgage Backed Securities
► Diagram of a Mortgage Backed Pass-Through security
► Diagram of a Collateralized Mortgage Obligation
► The Waterfall Structure determines Cash Flows and Losses
► Risk and Returns for different tranches of CMOs
► Mortgage Backed Securities Issuance Volume
B: UNDERSTANDING MORTGAGE COMPUTATIONS
► How a Fixed Rate Mortgage works
► The Mortgage Formula and its Proof
► Intuition behind the Mortgage Formula
► Amount Outstanding versus Time as a function of Monthly Payment
► Impact of Monthly Repayment amount on the Term of a Mortgage
► Computation of a Mortgage Amortization schedule
C: MODELLING A MORTGAGE BACKED SECURITY
► Computing the Cash Flows of a Fannie Mae MBS
► Cash Flows of the 6%, 30 year, Fannie Mae MBS
► Interest and Principal Payments over the life of the Fannie Mae MBS
► Principal Outstanding at month-end over the life of the Fannie Mae MBS
© NEURAL 2018
D: PRE-PAYMENT BEHAVIOR of MORTGAGES
► Factors affecting Mortgage Prepayment behavior
► Mortgage Pre-payment as an American Option
► Market and Non-Market factors driving Mortgage Pre-payments
► Factors affecting Mortgage Pre-payments and Defaults
► Actual, Optimal and No Mortgage Pre-payments
► Mortgage Pre-payments are Interest rate path dependent
► Mortgage Pool “Burn Out”
E: EXERCISES ON MORTGAGE BACKED SECURITIES
► Exercise 1: MBS with full amortization and no prepayments
► Exercise 2: Impact of changes in market interest rates on MBS
► Exercise 3: MBS with half amortization
► Exercise 4: MBS with Pre-payment
F: VALUING A MORTGAGE BACKED SECURITY
► How to value a Mortgage Backed Security using the Binomial Tree
► Simulation of the Interest Rate Tree
► Determine Cash Flows based upon Pre-payment Models
► Determining the Risk Adjusted Spot Rates at each node of the Binomial Tree
► Determine the value of the MBS along each Path of the Binomial Tree
► An Overview of Monte Carlo Simulation
17
 B. RISK MANAGEMENT
# COURSE NAME SUGGESTED DURATION
9 Fundamentals of Risk Management 2 days
10 Managing Market Risk 2 days
11 Credit Risk Management 2 days
12 Counterparty Credit Risk 2 days
13 The Cutting Edge of Operational Risk Management 4 days
14 Liquidity Risk 2 days

© NEURAL 2018 18 18
 9. Fundamentals of Risk Management
A. DEFINING AND QUANTIFYING RISK E. OPERATIONAL RISK
► Market Risk ► Definitions & sources of operational risk
► Credit Risk ► Importance of Operational Risk
► Liquidity Risk ► Operational risk examples
► Operational Risk F. LIQUIDITY RISK
► Other Risks ► Fundamental nature of liquidity risk
B. MARKET RISK ► Principles for liquidity management
► Identifying types of Market Risk ► Stress testing
► Market Risk key concepts ► Contingency planning
C. VALUE AT RISK (VaR) ► Risk tolerance
► Regulatory requirements ► Liquidity pricing
► Confidence intervals and holding periods G. BASEL III
► Back-testing ► BASEL III and its Risk Management
► Stress testing ► Consequences
D. CREDIT RISK ► Key recommendations of BASEL III accord
► Identifying types of credit risk ► Approaches to measure credit risk
► Credit Risk key concepts ► Standardized Approach
► Exposure at default ► Internal Ratings Based (IRB) Approach
► Probability of default ► Foundation Methodology
► Loss given default ► Advanced Approach
► Basel III - Implémentation challenges

© NEURAL 2018 19
 10. Managing Market Risk
A. RISK MANAGEMENT PROCESS D. UNDERSTANDING INTEREST RATE EXPOSURE
► Rise of derivatives & risk management ► IRE calculation
► Risk assessment and management process ► Re-pricing profiles of balance sheet
► Various types of risks in financial markets ► Interest rate gaps
► Roles of risk takers/dealers/traders ► Defeasance time & period
► Framework of price risk ► IRE / Accrual Limits
B. FUNDAMENTAL REVIEW OF THE TRADING BOOK E. M ARKET RISK COMPONENTS
► Development of VaR and its usefulness ► Equity Risk
► Computation of Market VaR ► Interest rate Risk
► Computation of Expected Shortfall ► Currency Risk
► VaR and financial derivatives ► Commodity Risk
► VaR and regulatory reporting – Basel II & III ► Margining Risk
► Bank’s balance sheet composition & risk analysis ► Holding-period Risk
► Risk measurement and accounting ► Basis Risk
► Price risk management & limit structure ► Correlation Risk in Hybrid products
► Key risk management controls F. ECONOMIC / REGULATORY CAPITAL
C. ANALYTICAL FRAMEWORK FOR MARKET RISK ► The “New” Standardized Approach
► Application of statistics in measuring market conditions ► Regulatory Reporting under Pillar III
► Normal & Log normal distribution G. OTHER RISK RELATED TOPICS
► Volatility ► Model validation process
► Risk at portfolio level ► Rate reasonability process
► Market Factor Sensitivity and VaR ► Stress testing process
► Computation of factor sensitivity & VaR ► Audit and related control process
► Bond factor sensitivities for different tenor ► Dealing room policies and practices
► Measurement & Control of Risks in Accrual or Banking Book

© NEURAL 2018 20
 11. Credit Risk Management
A. ELEMENTS OF CREDIT RISK MEASUREMENT E. DEVELOPMENT OF CREDT RATINGS MODELS AND THEIR
►The gamut of Credit Products PARAMETERS
►Financial statement analysis ►Mapping Ratings to default Probability
►Overview of Rating models ►Altman Z Score
►The Credit Life Cycle ►Credit Risk Exposures & Default probability models
►Credit Scores ►Asset based models
B. LENDING PRINCIPLES ►Concept of distance to default
►5 C’s of credit ►Credit Ratings
►Preliminary analysis ►Marginal and Cumulative defaults
►Sources of additional information ►Transition Probabilities
►Credit policy ►Recovery Rates
►Credit procedures ►Bond Prices and Credit Spreads

C. COMPONENTS OF CREDIT RISK F. REGULATORY REQUIREMENTS FOR CREDIT RISK

►Default ►Basel Guidelines for Measuring and Reporting Credit Risk
►Recovery ►Computation of Capital Requirement for Credit Risk under the New
►Loss Given Default Standardized Approach
►Credit Exposure G. MITIGATION OF CREDIT RISK
►Credit Risk Management products available
D. COMPUTATIONAL ANALYSIS OF CREDIT RISK ►Uses and Misuses of Credit Default Swaps
►Poisson Distributions and its application to Credit Risk ►Stress Testing of Credit Portfolios
►Probability of Default (PD)
►Loss Given Default (LGD) H. MODEL VALIDATION AND STRESS TESTING
►Exposure At Default (EAD) ►How to validate Credit Risk models
►Credit VaR ►Stress Testing of Credit Portfolios

© NEURAL 2018 21
 12. Counterparty Credit Risk
A. FUNDAMENTALS OF COUNTERPARTY CREDIT RISK E. MITIGATING COUNTERPARTY CREDIT RISK
► Credit Exposure versus Counterparty Exposure ► How to Mitigate Counterparty Credit Risk
► Definition of Counterparty Credit Risk
► Mitigation Method 1 – Default Remote Entities
► The Key Drivers of Counterparty Credit Risk
► The Good, the Bad and the Ugly of Counterparty Credit Risk ► Mitigation Method 2 – Termination Events
► Growth of OTC Derivatives Markets and implications for Counterparty Credit Risk ► Mitigation Method 3 – Netting
B. FINANCIAL BLOW OUTS AND COUNTERPARTY EXPOSURE  Multilateral Netting
► Evolution of the perils of Counterparty Credit Risk  Benefits of Netting
► The case of Lehman Brothers  How Netting works
► The case of AIG Financial Products  Impact of adding more transactions to the netting set
► The case of Bear Stearns
 Impact of Correlation on Netting
► Why and How Counterparty Credit Risk arises
► The “TOO BIG TO FAIL” conundrum ► Mitigation Method 4 – Collateralization
► Role of Systemic Risk in today’s globally integrated financial markets  Benefits of a Collateral Backed transaction
C. REVIEW OF FINANCIAL PRODUCTS AND THEIR COUNTERPARTY  Collateral Process
 Collateral Agreement
EXPOSURES
► Currency Forwards  Collateral Valuation Agent
► Interest Rate Swaps  Types of Collateral
► Cross Currency Swaps  Collateral Disputes Process
► Equity Swaps  Collateral Haircut
► Repos
F. CREDIT VALUE ADJUSTMENT
► Practical Exercises on computing Counterparty Credit Risk for:
 Currency Forwards, Interest Rate Swaps, Cross Currency Swaps ► CCR and CVA Capital Charges in Basel III
D. QUANTIFYING COUNTERPARTY CREDIT RISK p ► Standardized CVA Risk Capital Charge
► VaR versus Basel definitions to quantify Counterparty Credit Risk ► Advanced Approach to CVA Risk Capital Charge
► Expected future Mark-to-Market and Counterparty Exposure ► Regulatory Formula for CVA Risk Capital Charge
► Expected Exposure (EE) and Potential Future Exposure (PFE) ► Basel III formula for calculating CVA Risk Capital Charge
► Plotting Expected MTM, Expected Exposure and Potential Future Exposure
► Plotting a Distribution of future MTMs using Monte Carlo simulation G. WRONG WAY RISK
► Quantifying Potential Future Exposure along a Time Line ► Practical example of a Wrong Way Risk
► Expected Positive Exposure (EPE) ► Effects of Wrong Way Risk
► Effective Expected Exposure (EEE) and Effective Expected Positive Exposure (EEPE) ► Examples of Wrong Way Risk Trades
► Behavior of EE and EPE over time for short dated instruments ► Computing VaR in Wrong Way Risk Environment
► Peak Exposure over time
© NEURAL 2018 22
 13. The Cutting Edge of Operational Risk Management – 1
A. OPERATIONAL RISK IN CONTEXT
► Operational Risk & Stranded Capital at major global banks
► Forces driving the increase in Ops Risk Capital Charge
► Operational Risk Losses due to:
 Rogue Trading
 External Events
 Failed Systems
► Operational Risk Events in the run up to the Sub Prime crisis
Operational Risk – A Fuzzy Concept
►
► Types of Operational Risk
► Traditional versus Modern Approaches to OPERATIONAL RISK
B. THE REGULATORY ENVIRONMENT
► Evolution of Operational Risk methodologies under Basel II
► Basel II and III Approaches to Operational Risk
► Evolution in Measurement of Operational Risk Capital Charges
C. MEASUREMENT AND REPORTING
► Methodologies for computing Operational Risk Capital Charge
► Operational Risk Capital Charges for different approaches
► Challenges in the use of the Advanced Measurement Approach
► Characteristics of Operational Risk Loss Events
 The Basic Indicator Approach
 The Standardized Approach
 Alternative Standardized Approach
 Recent Standardized Measurement Approach from Basel Committee
 Internal Measurement Approach
 Advanced Measurement Approach
 The Loss Distribution Methodology
► Mathematics behind the Advanced Measurement Approach
© NEURAL 2018
C. MEASUREMENT AND REPORTING (continued)
► A Statistical insight into Operational Risk Losses
► Historical Data for measuring Expected Operational Risk Losses
► Scenario Analysis and Stress Testing
► Steps in Scenario Analysis & Stress Testing Procedures: Writing The Algorithm
► Calculating 99.9% OpVAR via Internal Measurement Approach
► A Practical Example of the Internal Measurement Approach
► Calculating the Capital Charge For 99.9% OpVAR using the Loss Distribution Approach
D. QUANTIFICATION OF OPERATIONAL RISK
► Choice of suitable distributions to model Loss Severity and Frequency
► The four parameter, g&h distribution to model Loss Severity
► Modeling Tail Risk using Extreme Value Theory (EVT)
► The probability density function of Generalized Extreme Value (GEV)
► The probability density function of Generalized Pareto Distribution (GPD)
► Empirical Mean Excess function of a Generalized Pareto Distribution
► Testing for Goodness of Fit
► The algorithm for Monte Carlo simulations of loss scenarios
► Poisson Distribution – for determining Frequency of Losses
► Assessing Severity of an Operational Loss
► The Lognormal Distribution for assessing Loss Severity
► The challenge behind combining LOSS FREQUENCY and LOSS SEVERITY DISTRIBUTIONS
► Cumulating the Likelihood and Severity Distributions
► Techniques for Cumulating Frequency and Severity Distributions
► IMPACT versus LIKELIHOOD of Operational Risk Loss Events
► Operational Risk: FREQUENCY versus SEVERITY Map
► Modeling the LOSS FREQUENCY DISTRIBUTION, N
► Modeling the LOSS SEVERITY DISTRIBUTION at two levels
► The Sting of Operational Risk is in The Tail
► Best practices in the simulation of Operational Losses
23
 13. The Cutting Edge of Operational Risk Management – 2
E. OPERATIONAL RISK CAPITAL CHARGE G. MEASURING OPERATIONAL RISK IN REAL TIME
► Regulatory Capital versus Economic Capital in Operational Risk ► NEURAL’s Real Time Ops Risk Framework for Global Banks
► Transforming Risk Information into Risk Capital ► Framework for Real Time Operational Risk analytics & visualization
► Capital Charge for Operational Risks ► REAL TIME Engine for Global Operations Risk Analytics
► Evolution of Operational Risk Capital Charge ► Leveraging BIG DATA and HADOOP for Operational Risk
 Stage ONE - The BASIC APPROACH ► High Performance Operational Risk Computing
 Stage TWO - The STANDARDIZED APPROACH ► Complex Event Processing (CEP)
 Stage THREE - The ADVANCED MEASUREMENT APPROACH ► Risk Dashboards for each layer of Management in a Global Bank
 Stage FOUR - The LOSS DISTRIBUTION APPROACH ► Global Heat Map for Country-by-Country Operations Risk
► Transforming Risk Information and Loss Data Into Operational Risk Capital Charge ► Real Time Operational Management Systems (R-TOMS)
► Gross Losses by Business Lines and event Types - Loss Severity reported to ORX
from 2008 to 2012
F. RECENT STANDARDIZED MEASUREMENT APPROACH
► Withdrawal of AMA for Operational Risk modeling
► Introducing the Standardized Measurement Approach for modeling Operational Risk
Capital
► The New Standardized Measurement Approach of June 2016
► Inclusion of bank specific Historical Losses into the SMA
► Computation of the Business Indicator (BI)
► Asymmetries in the Services component of BI
► Inconsistencies in the treatment of Dividend Income
► Overcapitalization of banks with a high Net Interest Margin
► Overcapitalization of banks with high Fee Component of BI
► Inconsistent treatment of Leasing compared with Credit
► Computation of the new Business Indicator
► Adding the Loss Component to the Business Indicator
► Computing Loss Component and the Internal Loss Multiplier
► Capital charge under Standardized Measurement Approach

© NEURAL 2018 24
 13. The Cutting Edge of Operational Risk Management – 3: Case Studies
CASE STUDY ONE:
Implementation of Operations Risk at a Leading Full Service Asian Bank
► Operational Risk Revamp: Phase 1 – The Baselines
► Operational Risk Revamp: Phase 2 – Policy & Procedures
► Operational Risk Revamp: Phase 3 – Processes & Assurance
► Milestones in the Operational Risk Revamp at Bank Alpha
► Steps for Basel II, Operational Risk compliance at Bank Alpha
CASE STUDY TWO:
Operations Risk Strategy at a Major European Bank with Global Operations
► Strategic Actions Undertaken at Bank Delta
► Stakeholder Management and Committee Reporting
► Actions taken after the Operational Risk Project
► Creating Policies, Processes and Procedures
► Documentation and Training
► Putting Best Practices in Place
► Ensuring the Documentation meets Regulatory Scrutiny
► Technical Libraries and Approvals
► Establishing Benchmarks and Setting Up The Technical Content
► Approvals, Checks and Balances as Processes
► How Basel II, Operational Risk compliance was achieved at Bank
Delta
© NEURAL 2018
CASE STUDY THREE:
Managing the Operations Risk at a Global Derivatives Exchange
► Risk Control Self-Assessment at a Global Exchange
► Workflow for Risk Control Self-Assessment
► Aims of Risk Control Self-Assessment
► Key Risk Indicators assessment at a Global Derivatives Exchange
► Business Continuity Plans in Operations Risk at an Exchange
► What the regulators observed and look for in the Business Continuity Plans
► Process Mapping for Operational Risk in an Exchange
► Inputs for mapping of Risk Processes
► Outputs from the Risk Process Mapping exercise
► Training Non-risk Departments to Identify their KRIs
► Mapping Processes, Assessing Risks and Developing KRIs at a Global
Derivatives Exchange
► Operational Risk Scorecards
CASE STUDY FOUR:
Quantification of Operational Risk at a large American Bank
► Quantification of Operational Risk at Bank Gamma
► Loss Frequency and Loss Severity Distributions for Bank Gamma
► Bank Gamma’s Loss Frequency Distribution
► Bank Gamma’s Loss Severity Distribution
► Generation of Aggregate Loss Distribution at Bank Gamma
► Computation of Operational Risk for Bank Gamma
25
 14. Liquidity Risk
A. UNDERSTANDING THE NATURE OF LIQUIDITY RISK E. CONTINGENT LIQUIDITY RISK
► The universe of investable instruments ► The need for contingency planning
► Pools of liquidity and benchmark securities, off the run and illiquids ► Written contingency plans
► Normal market sizes, bid-offer, block trades ► Crisis management plans for assets
► Repo and the funding of illiquid instruments ► Crisis management plans for liabilities
► Liquidation and "fire-sales“ ► Internal and external communications
► Liquidity risk in banking, securities trading and insurance ► Other crisis management issues

B. LIQUIDITY BLACK HOLES F. LIQUIDITY STRESS TESTING

► Practical examples of Liquidity Black Holes ► Why stress test liquidity?
► Liquidity issues in the world’s most liquid market – Foreign Exchange ► Empiricism versus rocket science
► How Foreign Exchange traders respond to a liquidity crisis ► General considerations
► Liquidity issues in Fixed Income Markets ► Current stress test priorities
► Liquidity problems in Equity Markets ► Assumption sensitivity
► Why do Liquidity Black Holes occur ► Additional considerations
► How to manage trading positions in periods of Illiquidity G. LIQUIDITY-ADJUSTED VaR - Measuring Market Risk in the
C. SECURITIES PRICING WITH ILLIQUIDITY face of Illiquidity
► Random walks and the assumption of continuous trading ► Definitions o Using liquidity-adjusted VAR to manage risk
► Gap risk ► Limitations of standard VAR measures to assess liquidity
The effect of jumps on the pricing framework
►
H. SYSTEMIC CHANGES IN LIQUIDITY AND VOLATILITY
► Risk premiums and risk neutrality
► Risk capital and illiquidity
► Impact on derivatives pricing and mark to market
► The effect of VAR models on liquidity cycles
D. FRAMEWORK FOR LIQUIDITY MANAGEMENT ► Liquidity and volatility
Mismatch approach
► ► Predicting volatility changes: GARCH models
► Foreign currency liquidity management ► The perspective from implied volatility
► Internal controls for liquidity risk management ► Implied probability distribution and tail risk
► Stress testing and scenario analysis
► Double default and the analysis of collateralized transactions
► Basel and liquidity risk

© NEURAL 2018 26
 C. INSURANCE & ACTUARIAL SCIENCES

# COURSE NAME SUGGESTED DURATION

15 Applied Financial Mathematics 2 days
16 Applied Financial Statistics 2 days
17 Insurance and Risk Management 3 days

© NEURAL 2018 27
 15. Applied Financial Mathematics
A. ALGEBRA IN FINANCE D. TIME VALUE OF MONEY AND ASSOCIATED INTEREST RATES
► Mathematical Notations ► Simple Interest
► Basic Algebra related to Quadratic Equations, ► Compound Interest Rate
► Inverse Functions, ► Continuous Compound and the usage of the Euler’s constant e in Continuous Compound
► Log and Exponential functions ► The force of interest δ and its usage in finance
► Logarithms – especially to base e and its application in finance – especially ► Accumulation Factors and the Principles of Consistency
in Continuous Compounding ► Interest Payable p-thly
► Arithmetic and Geometric Progressions and their applications to Financial ► Discounting and Accumulating
math series such as discount factors v
► Gamma Functions and Factorials E. ANNUITIES AND PERPETUITIES
► Stirling Approximation ► Immediate and Deferred,
► Difference Equations ► Annuities Due, in Arrears and Continuous
► Usage of appropriate formulae for each
B. MATRIX ALGEBRA ► Deferred and Increasing Annuities and usage of appropriate formulae and notation
► Matrix Algebra and Vectors Algebra
► Eigen Values and Eigen Vectors F. NET PRESENT VALUE AND INTERNAL RATE OF RETURN
Loan Scheduling
C. APPLICATIONS OF CALCULUS IN FINANCE ►
► Compound Interest Issues related to Fixed Interest Rate Securities, Calculating Yields
► Differential and Integral Calculus
► Relationship between Term to Redemption and Price
► Chain Rule
► Relationship between Term to Redemption and Yield
► Nested Functions
► Deferred Income tax,
► Product and Quotient functions
► Uncertain Income Securities,
► Differentiation from 1st Principles
► Inflation Adjusted Cash Flows
► Differentiation of Euler’s constant
► Index Linked Bonds
► Exponential functions such as ex, e5x
► Capital Gains Tax
► Lagrangian Multiplier for Constrained Optimization
► Optional Redemption Dates
► Integration of Nested Functions
► Arbitrage and Forward Contracts
► Integration by Parts
► Term Structure of Interest Rates
► Leibnitz Rule
► Stochastic Interest Rate Models
► Double Integrals
► Swapping Limits in Definite Integrals
© NEURAL 2018 28
 16. Applied Financial Statistics

A. CONCEPT OF RANDOM VARIABLES E. DISCRETE AND CONTINUOUS PROBABILITY DISTRIBUTIONS

► Discrete and Continuous and its ► Uniform
► Application of Random Variables in finding Probabilities in Insurance and ► Bernoulli
Risk Management ► Binomial and Negative Binomial
B. MOMENTS OF RANDOM VARIABLES ► Geometric
► 1st Moment (Mean) ► Hypergeometric
► 2nd Moment (Variance) ► Poisson
► 3rd Moment (Skewness) ► Gamma
► 4th Moment (Kurtosis) ► Beta
► Generating Functions to find the first 3 Moments ► Normal Distribution (using the Z Tables)
► Probability Generating Function (pgf) ► Standard Normal Distribution)
► Moment Generating Function (mgf) ► LogNormal
► Cumulant Generating Function (cgf) ► t Distribution
► The Fischer F Distribution
C. VISUAL DASHBOARD DEPICTION OF DATA
► Summarising Data and Dashboard Metrics
► Frequency Curves F. CORRELATION, COVARIANCE AND REGRESSION
► Histograms
► Pie Charts G. JOINT AND MARGINAL DISTRIBUTIONS
► Hi-Lo-Open-Close charts ► Conditional Expectation
The Central Limit Theorem
D. PROBABILITY THEORY ►

► Conditional and Independent Events

► Mutually Exclusive Events H. ANOVA (ANALYSIS OF VARIANCE)
► Application of Set Theory and Venn Diagrams
► Addition Rule
► Multiplication Rule
► Bayes Theorem
► Tree Diagrams

© NEURAL 2018 29
 17. Insurance and Risk Management - 1

A. BUILDING BLOCKS - INSURANCE RISK CONCEPTS C. GENERAL INSURANCE

► Pooling ► General insurance – the legal definition
► Evaluation and Quantification of Risks, ► Heterogeneity of Risk Exposures
► Basic concept of risk ► Risk Classification
► Assets – Risks and Perils – Risk and Uncertainty ► Solidarity
► Risk as Statistical Dispersion ► Claims Frequency and Size
► Classification of Risks ► Distribution of Claims
► Nature of Risk Environment ► Credibility theory
► Static and dynamic risks ► Risk Theory and the concept of Ruin
► Fundamental and Particular Risks ► The Pure risk premium
► Hazards - Role of Insurance ► The Office Premium
► Insurance and the burden of risk ► Class and Individual Rates
► Mechanism of insurance ► Reserves

B. RISK AND INSURANCE MANAGEMENT D. LIFE INSURANCE AND IT’S CUSTOMERS

► The Economic Life Cycle
► Risk Governance
► The Asset
► Steps in the Risk Management Process
► Defining and Measuring HLV
► Laying the Objectives
► The Risks:
► Identification of Risks
► Evaluating and Measuring the Risk  Mortality verses other risks
► Loss Frequency  Age and mortality risk
► Loss Severity ► Level Premiums
► Classifying the Risk ► Types of Life Insurance
► Managing the Risk - Risk Control ► Pooling and financial risks
► The contract

© NEURAL 2018 30
 17. Insurance and Risk Management - 2
E. MODELLING LIFE INSURANCE F. FINANCIAL RISK IN INSURANCE
► Determination of Premiums and Price ► Assets under Management (AUM)
► Elements of Premium ► Types of Financial Risks
► Mortality – The Mortality Table – Standard Mortality Table – ► Reserving / Provisioning
► Calculation of Mortality Costs ► Application of shocks on financial parameters
► Interest - Future and Present Value of Annuity ► Fixed Income Credit Risk Framework
► The Net Premium – Net single Premium – Net Level Annual Premium ► Rating - Modulation of the Exposure limits
► Gross Premiums G. ACTUARIAL RISK IN INSURANCE
► Reasons for Loading ► Concept of Actuarial Risks in Insurance
– Loading for Expenses ► Key Factors Influencing Actuarial Risks
– Loading for contingencies ► Burning Cost
– Bonus Loading ► Concept of Pricing
► The Actuarial Control Cycle ► Experience Rating of a Health Insurance Policy
► Reserves – Net and Gross Premium Reserves ► Pricing Risk
► Assets Shares and Surrenders ► Solvency Risk
► Valuation and Surplus – Analysis of Surplus – Sources of Surplus – H. OPERATIONAL RISK IN INSURANCE
Determining the divisible surplus – Factors influencing retention of surplus – ► Qualitative Risk Assessment
Free Assets – Distribution of surplus – The Bonus mechanism. ► Analysis of Risks
► Reversionary Bonus – Cardinal principles in bonus distribution – Re ► Evaluation and Quantification of Risks
valorisation – The contribution method – Investment and Unit Linked ► Monitoring and Reporting Risks
Insurance. ► Quantitative Risk Assessment Steps
I. RISK MANAGEMENT TECHNIQUES FOR INSURANCE
► Risk Appetite Framework - Characteristics of Risk Appetite Framework
► Components of Risk Appetite Framework
► Risk Management Techniques- Risk Transfer - Methods of Risk Transfer
► Types of Reinsurance Contracts - Treaty Reinsurance - Types of Proportional
Reinsurance
► Concept of Own Risk Solvency Assessment (ORSA) – Features/ Objectives of ORSA.

© NEURAL 2018 31
 D. FINANCIAL ENGINEERING

# COURSE NAME SUGGESTED DURATION

18 Deep Insights into Derivatives 2 - 3 days
19 Structured Products & Financial Engineering Minimum 2 days
20 Exotic Options Minimum 2 days
21 Credit Derivatives Minimum 2 days
22 Securitization & Collateralized Debt Obligations Minimum 2 days
© NEURAL 2018 32 32
 18. Deep Insights into Derivatives

A. AN OVERVIEW OF FINANCIAL DERIVATIVES D. OPTION VALUATION AND PRICING MODELS

► What are derivative products ► Continuous stochastic processes; Brownian motion
► General risks in these products ► The Black-Scholes Model
► Gearing and leverage ► Shortcomings of the Black-Scholes framework
► Reasons for existence and proliferation of derivatives ► The Garman-Kohlagen Model
► General concepts behind derivative transactions ► The Binomial (Cox Ross Rubinstein) Model
► OTC versus Exchange Traded Derivatives
E. OPTION SENSITIVITIES – THE GREEKS
B. FORWARDS AND FUTURES ► Delta
► Forward Rates ► Gamma
► Future Rates ► Vega
► Spot and Forward rates in practice ► Theta
► Interest Rate Parity ► Rho
► Covered Interest Arbitrage
F. DERIVATIVES DISASTERS and THEIR LESSONS
C. OPTION STRATEGIES ► Orange County derivatives blow up
► Calls ► Soured Derivative transactions in Asia
► Puts ► Procter & Gamble
► Bull Call Spread ► AIG Financial Products
► Bull Put Spread
► European Straddles
► Strangles
► Butterflies
► Condors

© NEURAL 2018 33
 19. Structured Products & Financial Engineering - Day 1

Session 1 INTRODUCTION TO STRUCTURED FINANCIAL PRODUCTS

► The genesis of structured financial products
► The case for and against structured financial products
► The key driving forces behind the development of structuring and financial innovation
► Comparative advantage in bond and loan markets - The drivers of the first interest rate swaps
► Decision tree for selection of appropriate structured product: Capital Protection, Yield Enhancement; Participation products; Leveraged
products

Session 2 PRACTICAL APPLICATIONS OF FINANCIAL ENGINEERING

► A classic case of a structured financial transaction: The world’s first ever cross currency swap between IBM and the World Bank
► Structuring a hybrid bond where principal is guaranteed by a highly rated supranational but coupons are guaranteed by the government of
an emerging market economy
► Practical illustration of pricing such a hybrid bond using first principles: A Yankee Bond issue by ONGC, in which the principal was
guaranteed by the Asian Development Bank and the coupons were guaranteed by the Republic of India

Session 3 PRICING TECHNIQUES FOR DERIVATIVES & STRUCTURED PRODUCTS

► Numerical techniques such as Binomial and Trinomial trees
► Monte Carlo simulation
► Closed form solutions

Session 4 REAL LIFE COMPLEX STRUCTURED DEALS

► Practical application of how to use a complex “cross-asset barrier option” to help a client reduce their cost of hedging jet fuel, interest rate
and foreign exchange risks in an integrated manner. Structured products proposed by a leading investment bank to a major airline in India
will be discussed.
► Practical illustration of how a major global investment bank designed a new bond issue for a sovereign issuer along with the use of asset
swaps to identify market mis-pricings, thereby creating an arbitrage.
► The case of Republic of Italy’s US Dollar bond issue along with a tender offer to buy back bonds issued in other currencies will be discussed.

© NEURAL 2018 34
 19. Structured Products & Financial Engineering - Day 2

Session 5 THE FUNDAMENTALS OF CREDIT DERIVATIVES

► Credit risk framework
► The credit triangle
► Credit default swaps
► Cash flows on a credit default swap
► Using credit default swaps to take a view on changes in credit quality

Session 6 COMPLEX CREDIT DERIVATIVES AND THEIR APPLICATIONS

► Digital or binary default swaps
► Basket default swaps
► Credit linked notes
► Credit spread options
► Applying asset swaps to create a pure credit play from a fixed rate bond
► Practical case of structuring a tax arbitrage using credit derivatives

Session 7 SECURITIZATION AND COLLATERALIZED DEBT OBLIGATIONS

► The process of securitization
► The benefits of securitization for banks and loan originators
► The R.O.S.E. securitization of NatWest Bank
► Insurance securitization and Catastrophe Linked bonds (CAT Bonds)
► Collateralized Debt Obligations - Their characteristics and structure
► The Waterfall Structure and rules governing the priority of payments

Session 8 OPEN DISCUSSION ON THE ROLE OF COLLATARELIZED DEBT OBLIGATIONS IN THE FINANCIAL CRISIS OF
2007-2008
► The sub-prime mortgages and their role in the start of the crisis
► Citigroup and the role of Meredith Whitney in unbundling the complex Citigroup balance sheet
► Goldman Sachs and AIG financial products
► The Big Short

© NEURAL 2018 35
 20. Exotic Options

A. INTRODUCTION TO EXOTIC OPTIONS C. DIGITAL AND ONE TOUCH OPTIONS

► Motivations and applications of exotic options o Pricing and valuation issues: ► CASH or NOTHING Calls/Puts
► Black-Scholes, analytical models; advantages and shortcomings ► One Touch’ digitals and rebates
► Numerical methods (Binomial, Trinomial lattice models, Monte Carlo simulation) ► Contingent premium ‘pay later’ options
► Modeling considerations for exotic option pay-offs ► Pricing of digital options
► Hedging and risk management of digital option s
B. BARRIER OPTIONS ► Delta hedging; risk management problems
► Overview of types (knock-ins and knock-outs; reverse knock-in/out ► Disappearing Greeks
► DOWN and OUT/IN Barrier Options ► Pricing using a volatility surface
► UP and OUT/IN Barrier Options ► Gamma, Vega, theta behavior
► Pricing and valuation of Barrier options ► Replication using spreads, risk reversals
► Analytic solutions
► Parity relationships (European = knock-out plus a knock-in) D. QUANTO (QUANTITY ADJUSTED) OPTIONS
► Numerical methods of Barrier option pricing ► Quanto derivatives
► Pricing double barrier options and other variants ► Pricing quanto derivatives
► Impact of varying barrier parameters on performance, cost ► Replication approach
► Hedging Barrier options ► Analytical approach
► Risk sensitivities and their characteristics ► Pricing parameters
► Static replication of barrier option risks ► correlation and volatility inputs
► Managing Greeks close to barriers; managing sign changes ► Hedging quanto derivatives
► Risks of hedged positions ► Applications of Quanto options
► Higher order sensitivities
̶ Vanna, Volga sensitivities E. AVERAGE RATE (ASIAN) OPTIONS
̶ Skew risk ► Mechanics of average rate options
̶ The importance of higher order sensitivities in the management of barrier options
► Pricing and risk management characteristics
► Applications of Barrier Options
► Motivation and rationale for the use of Asian options
̶ Trading and hedging applications
► Hedging Asian options
̶ Trading optionality with barrier options
̶ Structured Barrier option strategies
© NEURAL 2018 36
 21. Credit Derivatives

A. FUNDAMENTALS OF CREDIT DERIVATIVES C. VARIATIONS OF CREDIT DERIVATIVES

► Evolution of the Credit Derivatives Market ► Digital or Binary Default Swaps
 Globally ► Credit Linked Notes
 In India ► Credit Spread Options
► Credit Risk Framework ► Dynamic Credit Swaps
► Valuing the Credit Spread of a Bond with Default Risk ► Credit Event Binary Option (CEBO)
► The Credit Triangle ► Using Credit Default Swaps to Take a View on Changes in Credit Quality
► The Universe of Credit Derivatives ► Applying Asset Swaps to Create a Pure Credit Play from a Fixed Rate Bond
► Practical Case of Structuring a Tax Arbitrage using Credit Derivatives
B. BUILDING BLOCKS OF A CREDIT DEFAULT SWAP ► Digital CDS
► Credit Default Swap (CDS) ► Credit Event Binary Option (CEBO)
 Fundamental Structure ► Using Credit Default Swaps to Take a View on Changes in Credit Quality
 Contractual Features
 Components of a CDS Term Sheet D. CREDIT DERIVATIVE INDICES
 Cash Flows of a CDS
 Settlement of CDS – Cash versus Physical
► Standard Credit Events for Various CDS Contracts E. PRICING AND VALUATION OF CREDIT DERIVATIVES
► Obligation Characteristics to Trigger a Credit Event ► Basic Principles for Pricing a Credit Default Swap
► Deliverable Obligations for Various CDS Contracts ► One Period Model to Value a CDS
► Types of Credit Default Swaps ► Two Period Model to Price a CDS
 Single Name CDS ► Multi Period Model to Price CDS
 Basket CDS ► Numerical Trees and Pay Offs for Multi Period Model
 CDS on Asset Backed Securities ► Generic Formula for pricing CDS
► Pricing CDS using Continuous Time Finance
► Can CDS Spreads be Negative
► Trading CDS Spreads

F. Discussion Topic: CAN CDS SPREADS BE NEGATIVE ?

© NEURAL 2018 37
 22. Securitization & Collateralized Debt Obligations
A: SECURITIZATION & COLLATERALIZED DEBT OBLIGATIONS C. STRUCTURING AND VALUATION OF CDOs
► Securitization: The process of converting Loans into Securities ► Assets, Tranches, Purposes, and Credit Structures
► The main Asset classes behind CDOs ► CDO Design and Valuation
 Emerging Market Debt ► Default Risk Model
 US High Yield Debt  Obligor Default Intensity
 Loans  Multi-Issuer Default Model
 Securitized Debt  Sectoral, Regional, and Global Risk
► The Evolution and Growth of the CDO market  Recovery Risk
► Why Do Investors Buy CDOs  Collateral Credit Spreads
► Diagram of a Collateralized Debt Obligation  Diversity Scores
 Senior Tranches ► Valuation Models
 Mezzanine Tranches  Collateral Pools
 Equity Tranches  Sinking-Fund Tranches
► Leverage in the Equity tranches of CDOs  Prioritization Schemes
► Risk and Returns for different tranches of CDOs
► The Waterfall Structure and Rules Governing the Priority of Payments
 Full Flow D. CDOs and THE GREAT RECESSION
 Partial Flow ► Sub-prime Mortgages and the role of CDOs
 Severe Dehydration ► Citigroup and the role of Meredith Whitney in Unbundling the Complex
► Advantages and Problems with CDOs Citigroup Balance Sheet
 Reduction of Statistical Outliers ► Goldman Sachs and AIG Financial Products
 Diversification Benefits ► CDOs and the Lehman Brothers bankruptcy
 Creating Liquidity for Lenders ► Implosion of Bear Stearns triggered by two hedge funds investing in CDOs
 Complexity
► The Alchemy of CDOs
 How AAA rated securities were created out of sub-prime mortgages
E. THE BIG SHORT
 The Making of a Mortgage CDO

B. COLLATERALIZED DEBT OBLIGATIONS STRUCTURES F. FINANCIAL CHERNOBYL or MANAGEABLE RISK? The

► Arbitrage Cash Flow CDOs Brewing Storm in Sub Prime and CDO Markets
► Balance Sheet Cash Flow CDOs
► Market Value CDOs
► Synthetic Arbitrage CDOs G. The Return of CDOs and its critics
► Funded versus Unfunded CDOs ► CDOs Are Back: Will They Lead to Another Financial Crisis?
► Hybrid CDOs ► Investment Landfill: How professionals dump their toxic waste on you
► CDO-Squared
© NEURAL 2018 38
 E. INVESTMENT MANAGEMENT
# COURSE NAME SUGGESTED DURATION
23 Portfolio Management 2 days
24 Alternative Investments 2 days

© NEURAL 2018 39
 23. Portfolio Management

A. INTRODUCTION TO PORTFOLIO MANAGEMENT C. EVALUATING PORTFOLIO PERFORMANCES

► Goal of Portfolio Management ► Evaluating Investment Strategies
► Portfolio Managers – 3 Major activities ► Calculating Fund Returns
► Investment Managers ► Risk-Adjusted Performance
► Fundamental analysis ► Return per Unit of Risk
► Passive vs. active management ► Alpha
► Asset classes ► Comparison of Performance Measures
► Relationship between risk and return ► Stock Selection
► Market efficiency ► Market Timing
► Cash Management Analysis
Probability of Success
B. PORTFOLIO CONSTRUCTION ►
► Multifactor Adjustment
► Portfolio Construction Process
► Aggregating Return Components
► Markowitz Model
► Security & Portfolio Return
► Measuring Risk / Risk in a portfolio context D. EQUITY INVESTMENT STYLES
► Diversification ► Classification by size
► Security Correlation & portfolio Risk ► Combining Strategies
► Adding Securities to Eliminate Risk ► Growth & Value Stock Groupings
► Systematic & Diversifiable Risk ► Sustainable Growth-Dividend Yield Characteristics
► Risk-Return & Weighting Changes ► Growth / Value Performance Indexes
► Short Selling ► Grouping by Price Action
► Asset Allocation ► Cluster Analysis
► Portfolio Construction / Passive Strategy

© NEURAL 2018 40
 24. Alternative Investments

A. INTRODUCTION TO ALTERNATIVE INVESTMENTS D. MEASURING HEDGE FUND PERFORMANCE

► Hedge Funds ► Sources of monthly NAV Data
► Commodity Trading Advisors and Managed Futures ► Selection of Benchmark Index
► Asset Backed Securities – CBOs and CLOs ► Selection of Peer Group
► Private Equity and Venture Capital ► Annual Returns
► Insurance Linked Securities ► Annual Volatility
► Sharpe Ratio
B. THE HEDGE FUND INDUSTRY ► Sortino Ratio
► Inception and History ► Maximum Drawdown
► Size, Growth and Development ► Down-side Deviation
► Performance ► Percentage Positive Months
► Key Players ► Consistency of Returns
► Drivers of growth of the hedge fund industry ► Computing the “Alpha” of a Hedge Fund
Types of Hedge Funds
►
E. FUND OF HEDGE FUNDS
► Famous Hedge Funds
► Advantages
► Investing in Hedge Funds
► Disadvantages
► Mutual Funds versus Hedge Funds
► Major Fund of Hedge Funds
► Performance of Fund of Hedge Funds
C. HEDGE FUND STRATEGIES
► Long/Short Equity Market Neutral F. ASSET BACKED SECURITIES – CBOs / CLOs
► Convertible Arbitrage ► CBOs – Collateralized Bond Obligations
► Distressed Debt ► CLOs – Collateralized Loan Obligations
► Relative Value Fixed Income
► Global Macro G. PRIVATE EQUITY AND VENTURE CAPITAL
► Multi-Strategy Funds
► Emerging Markets and High Yield H. INSURANCE LINKED SECURITIES
► Short Sellers

© NEURAL 2018 41
 F. REGULATORY & COMPLIANCE
# COURSE NAME SUGGESTED DURATION
25 Basel III and III+ 2 days
26 International Financial Reporting Standards (IFRS) 9 2 days
27 Anti Money Laundering 2 days

© NEURAL 2018 42
 25. BASEL III and III+
A. BRIEF OVERVIEW OF EVENTS BEFORE AND DURING C. CHANGES TO THE REGULATION OF MARKET AND
THE BANKING CRISIS OF 2007-2008 CREDIT RISK
► Securitization and the mortgage markets ► Why has traded market risk been highlighted as requiring attention?
► CDO markets, super senior tranches, the chase for yield, and the role of − Reinforcement to the approval process for internal models
the rating agencies − Introduction of Stressed VaR
► Point of Sale accounting and mark-to-market valuation ► Introduction of the Incremental Risk Charge to replace Issuer Specific Risk
► Reliance on whole-sale funding and the creation of funding liquidity risk − What are the broad requirements?
► Use of structured investment vehicles and implicit support − Netting and other mitigation
► Impact on the interbank markets − Specifying and implementing the liquidity horizon
► Limitations in stress testing − Brief outline of credit portfolio modeling, including both default and
► Procyclicality migration, to estimate the IRC
− Criticisms of the IRC, and likely modifications
► Deficiencies in senior and risk management oversight
B. CHANGES TO CAPITAL ITSELF D. ESTIMATION OF A CAPITAL CHARGE FOR
► The major problems with the current definition
► An outline of the changes
COUNTERPARTY CREDIT RISK (CCR)
► What is the current state? Background to the existing formula
− Removal of hybrid securities
► Introduction of the Credit Valuation Adjustment
− Introduction of Common Equity Tier 1 and Additional Tier 1
− Regulatory adjustments ► How to model expected positive exposure
− Elimination of Tier 3 and harmonization of Tier 2 ► Proposed Bond Equivalent approach
− Treatment of minority interests and other investments
− Harmonization with IFRS E. CENTRALIZED CLEARING FOR OTC DERIVATIVES
− Bail-in bonds ► How is the credit default swap market operating?
► Conservation Capital Buffer ► Lessons to be learnt
► Counter-Cyclical Capital Buffers ► Incentives and disincentives to centrally clear
► SIFIs and SIBS ► What are the current Basel proposals?
© NEURAL 2018 43
 25. BASEL III and III+ …. continued
F. PROPOSALS UNDER THE FUNDAMENTAL REVIEW OF
2012
► Division between Trading and Banking revisited
► Models to be calibrated in times of stress
► Assumption of differing market liquidity assumptions
► Changes to internal model approval
► Replacement of VaR by Expected Shortfall
► Movement of non-traded market risk into Pillar 1
► Potential changes to credit risk within the Trading environment
G. MARKET RISK - MEASUREMENT FRAMEWORK
► Methods to measure market risk capital
► Market Risk - Standardized Measurement Approach
► Treatment of Interest rate risk, Equity position risk, Foreign Exchange
Risk, Commodity Price Risk
► Treatment of options
H. RATINGS FOR IRB SYSTEMS
► Supervisory guidance on ratings of IRB systems for corporate credit risk
► Quantification of IRB Systems – PD, LGD, EAD, Maturity
© NEURAL 2018
I. MARKET RISK - INTERNAL MODELS APPROACH
► 'General' and 'Qualitative' requirements banks need to fulfill to be
eligible to use the internal models approach
► Quantitative standards that banks have to keep in mind for calculating
their capital charge o Specification of market risk factor
► Back Testing
► Stress Testing
J. KEY PRINCIPLES OF SUPERVISORY REVIEW
PROCESS
► Key principles of Supervisory review process
► Supervisory Review Process for Securitization
► Significance of Risk Transfer
► Market innovations
► Provision of Implicit Support and the supervisory action
K. DISCLOSURE REQUIREMENTS
► General considerations with regard to disclosure requirements
► Scope and applications
► Disclosure requirements for various risk exposures
44
 26. International Financial Reporting Standards (IFRS) 9
A. Overview of IFRS 9
► Obligatory for European Union companies
► Paul Volcker on Global Accounting Standards and IFRS 9
► From IAS 39 to IFRS 9 – A Long Journey
► Timeline of International Financial Reporting Standards
► Main Changes Introduced Through IFRS 9
B. Reaction of Banks & Investors towards IFRS 9
► Extra provisioning for credit risk from IFRS 9
► Is IFRS 9 a drain on Capital resources and inconsistent with new Basel Rules
C. Classification and Measurement
►Differences in Classification & Measurement between IAS 39 and IFRS 9
► Classification & Measurement – Decision Tree
► Applying Fair Value Option to Eliminate Accounting Mismatch
► A Comparison of Basel III, IAS 39 and IFRS 9
► Classification of Financial Assets under IFRS 9
► Classification of Debt Instruments under IFRS 9
► Financial assets and liabilities scoped out of IFRS 9
► Example A: ‘Hold-to collect’ business model
► Example B: SPPI test for loan with zero interest and no fixed repayment
terms
► Example C: SPPI test for loan with zero interest repayable in five years
► Example D: SPPI test for a loan with interest rate cap
► Example E: SPPI test for loan with profit linked element
► Example F: SPPI test: Modified time value of money
► Case Study: “Bank Alpha”
© NEURAL 2018
D. Impairment and Three Stages of Expected Loss Model
► Impairment Expense is a Key Determinant of Bank Profits
► Impairment under IFRS 9
► Accounting for the Three Stage model
► IAS 39: A Two Stage Approach versus IFRS 9: A Three State Approach to Loans
► Factors Influencing Migration from Stage 1 ►2 ► 3
► Scope of the EL Model
► Overview of the Expected Loss (EL) Model
► Stage Assessment – Critical Aspects
► Stage Assessment – The General Model
► Case Study of Mortgage Bank Mu
► Delta Corp case to measure change in Fair Value of a Bond due to Credit Risk
E. Expected Credit Loss Estimation
► Components of IFRS 9 Expected Loss Model
► The Three Key Building Blocks of ECL Estimation
► Economic Scenario Model
► Economic Linkage Model
► Credit Loss Estimation Model
► Final Steps to Derive at Expected Credit Loss
► 12Month versus Lifetime ECL
F. Point In Time versis Cyclical Probabilities of Default
► Impact of IFRS 9 on Bank’s balance sheet
► Impact of IFRS 9 on Credit Portfolio provisions and Regulatory Capital
G. Greece Government Bond Case Study
H. Vega Bank Case Study 45
 27. Anti-Money Laundering

A. Understanding Money Laundering

B. Anti Money Laundering Laws

C. Identifying Money Laundering Activity

D. Handling the Risk of Tipping off

E. Terrorist Financing

F. Politically Exposed Person Risk (PEP Risk)

G. The UK Anti Money Laundering Regime

H. Trust and Corporate Service Providers (CSP)

I. Banking

J. Insurance and Investment

K. Betting and Gaming

L. Mobile Financial Services Management

© NEURAL 2018 46
 G. CORPORATE FINANCE and M&A

# COURSE NAME SUGGESTED DURATION

28 Advanced Financial Modeling & Corporate Valuation 2 days
29 Mergers & Acquisitions and Corporate Restructurings 2 days

© NEURAL 2018 47
 28. Advanced Financial Modeling & Corporate Valuation
A. FUNDAMENTAL FUNCTIONS USED IN VALUATION
► Present Value of a Finite Annuity
► Internal Rate of Return (IRR) including multiple IRRs
► Flat payment on a loan
► Multiple compounding periods
► NPV and IRR of Time Dated Cash Flows
B. KEY CONCEPTS OF VALUATION
► Understanding Enterprise Value
► Four Methods of computing Enterprise Value:
̶ Accounting Approach
̶ Efficient Market Approach
̶ Simplified Discounted Cash Flow (DCF)
̶ DCF via proforma simulation
► Free Cash Flow (FCF)
► Mid Year discounting
► Terminal Value Model
C. WEIGHTED AVERAGE COST OF CAPITAL
►How to compute WACC
► Five issues / problems in determining WACC
► Asset Beta approach to computing WACC
► Finding Market Value of Equity
► Finding Market Value of Debt
̶ Practical Applications
̶ Intel Corp and Whole Foods
© NEURAL 2018
C. WEIGHTED AVERAGE COST OF CAPITAL …
continued
► Finding Tax Rates
̶ Practical Application Whole Foods Inc and Merck Inc.
► Finding Cost of Debt
̶ Practical Application to Merck Inc and US Steel Inc
► Finding Cost of Equity using the Gordon Dividend Model
̶ Applying Gordon Dividend Model to Merck Inc
► Two stage Gordon Dividend Model
̶ Applying the Gordon Dividend Model to Wachovia Inc
► Capital Asset Pricing Model (CAPM)
̶ Practical Applications of the CAPM
D. CORPORATE VALUATION
► Basic Template for Corporate Valuation
► Practical Application to Valuation of Starbucks Corporation
► What if and Scenario Analysis using Data Tables to study the
impact of WACC or Growth on Valuation
E. PRO-FORMA MODELS
► Proforma Template for Corporate Valuation combining:
̶ Enterprise Value
̶ Free Cash Flows
̶ WACC
̶ Terminal Value and
̶ Mid Year Discounting
48
 28. Advanced Financial Modeling & Corporate Valuation … continued
E. CASE STUDY – CATERPILLAR CORPORATION
Applying the Proforma Template to Valuation of Caterpillar
Corporation
► Sales Growth
► Operating Costs versus Sales
► Net Property, Plant & Equipment (PPE) versus Sales
► Net Fixed Assets versus Sales
► Dividends
► Depreciation
► Free Cash Flows and Share Value
► What-If and Scenario Analysis
© NEURAL 2018
F. RELATIVE VALUATION USING MULTIPLES
► The key to Relative Valuation
► Pervasiveness of Relative Valuation in Corporate Finance and M&A
► Relative Valuation and Market Perception
► Applying multiples to Valuation – the key issues
► The Price-Earnings Ratio
► Enterprise Value to EBITDA Multiple
► The skew in distribution of Price-Earnings Ratios on Wall Street
► Distribution of Global Price-Earnings Ratios
► Price to Book Ratio
► Estimating Price Earnings Multiple for a High Growth Firm from
Fundamentals
► A comparison of Price Earnings Multiples across Emerging Markets
► Using Price Earnings Ratios to make Investment Decisions
► The Price-Earnings Ratio for S&P 500 over time
► Price-Earnings to Expected Growth Rate in EPS (The PEG Ratio)
► PEG Ratio and Fundamentals
► Price to Bok Ratio
► Enterprise Value to Book Ratio
► Enterprise Value to Sales Ratio
► Comparing PE ratios across firms in a sector
49
 29. Mergers & Acquisitions and Corporate Restructurings
A. THE GAMUT OF CORPORATE RESTRUCTURINGS B. MERGERS & ACQUISITIONS
Types of Mergers
► EXPANSIONS ►

 Horizontal
 Mergers
 Vertical
 Acquisitions
 Conglomerate
 Take Overs
 Concentric
 Tender Offers
 Joint ventures ► Legal structures & Documentation
► Business valuation
► CONTRACTIONS / DEMERGERS ► Financing Options
 Sell Offs  Cash, Stock and Combinations
 Spin Offs ► Motivations for Mergers & Acquisitions
 Split Offs ► Statistics on Mergers & Acquisition activity
► CORPORATE CONTROL ► History of Mergers & Acquisitions
 Takeover Defenses ► What to Analyze before a Merger or Acquisition
 Share Repurchases ► The Logic behind M&A
 Exchange Offers ► Value Creation
 Proxy Contests ► Causes of Failure in M&A Transactions
► Friendly versus Hostile Takeovers
► CHANGES IN OWNERSHIP
► Defense tactics in Hostile Takeovers
 Leveraged Buy Outs (LBOs)
► Regulatory Approvals
 Going Private

C. MERGERS AND INSIDER TRADING

D. MERGER ARBITRAGE AS A HEDGE FUND STRATEGY

© NEURAL 2018 50
 29. Mergers & Acquisitions and Corporate Restructurings … continued

E. LEVERAGED BUY OUTS F. CASE STUDY ANALYSIS AND PRESENTATIONS

► How an LBO works – Deal Structure ► Participants will form teams and each team will be given a case study
 Using OPM (Other People’s Money) ► Participants are required to discuss & analyze the case study in their
 Role of JUNK Bonds in LBO financing teams and present their analysis to everyone
 What is a Tender Offer ► This will provide participants with a hands-on experience of working on
 From public to private via LBO and then public again Corporate Restructurings
 How LBOs Create Value ► As a result, participants will be equipped to apply their learning to real
► Characteristics of a Strong LBO candidate life situations in the financial world
► LBO funding structures
► LBO Monetization Strategies
► The Classic LBOs of the 1970s
► The Break up LBO model of the 1980s
► The Strategic LBOs of the 1990s
► LBOs of the 21st Century
► Factors affecting LBO Returns
 Pre Buyout Returns

 Post Buyout Returns

► How to Value an LBO

 Cost of Capital Methodology

 Adjusted Present Value Method

© NEURAL 2018 51
 H. H. BUSINESS ANALYTICS and BIG DATA

# COURSE NAME SUGGESTED DURATION

30 Certificate program in Business Analytics 40 days or 320 hours
31 Certificate program in Big Data Analytics 55 days or 440 hours

© NEURAL 2018 52
 30. Business Analytics - The Four Modules
Module 1: FOUNDATIONS of
BUSINESS ANALYTICS
1.A. Introduction to Business Analytics
1.B. Analytics on Spreadsheets
Module 3. PREDICTIVE ANALYTICS
3.A. Trend Lines and Regression Analysis
3.B. Forecasting Techniques
3.C. Introduction to Data Mining
3.D. Spreadsheet Modeling and Analysis
3.E. Monte Carlo Simulation and Risk
Analysis
© NEURAL 2018
Module 2. DESCRIPTIVE ANALYTICS
2.A. Visualizing and Exploring Data
2.B. Descriptive Statistical Measures
2.C. Probability Distributions & Data
Modeling
2.D. Sampling and Estimation
2.E. Statistical Inference
Module 4. PRESCRIPTIVE ANALYTICS
4.A. Linear Optimization
4.B. Applications of Linear Optimization
4.C. Integer Optimization
4.D. Decision Analysis
53
 30. Business Analytics – Module 1
Module 1. Part A. Module 1. Part B.
Introduction to Business Analytics Analytics on Spreadsheets
I. What Is Business Analytics? I. Fundamental Excel Skills
II. Evolution of Business Analytics II. Excel Formulas
III. Impacts, Challenges and Scope III. Copying Formulas
IV. Software Support IV. Other Useful Excel Tips
V. Data Sets and Databases V. Excel Functions
VI. Big Data VI. Basic Excel Functions
VII. Metrics and Data Classification VII. Functions for Specific Applications
VIII. Data Reliability and Validity VIII. Insert Function
IX. Models in Business Analytics IX. Logical Functions
X. Decision Models X. Using Excel Lookup Functions for Database Queries
XI. Model Assumptions XI. Spreadsheet Add-Ins for Business Analytics
XII. Uncertainty and Risk XII. Problems and Exercises
XIII. Prescriptive Decision Models XIII. Case: Performance Lawn Equipment
XIV. Problem Solving with Analytics
XV. Recognizing, Defining and Structuring the Problem
XVI. Analyzing the Problem
XVII. Interpreting Results and Making Decisions
XVIII. Implementing the Solution
XIX. Fun with Analytics
XX. Problems and Exercises
XXI. Case: Drout Advertising Research Project
XXII. Case: Performance Lawn Equipment

© NEURAL 2018 54
 30. Business Analytics – Module 2 – Parts A & B
Module 2. Part A. Module 2. Part B.
Visualizing and Exploring Data Descriptive Statistical Measures
I. Data Visualization and Dashboards I. Populations and Samples
II. Tools and Software for Data Visualization II. Understanding Statistical Notation
III. Excel Charts: Column and Bar Charts • Data Labels and Data Tables Chart Options • III. Measures of Location
Line Charts • Pie Charts • Area Charts • Scatter Chart • Bubble Charts IV. Arithmetic Mean • Median • Mode • Midrange
IV. Geographic Data V. Using Measures of Location in Business Decisions
V. Data Bars, Color Scales, and Icon Sets VI. Measures of Dispersion
VI. Spark lines VII. Range • Inter Quartile Range • Variance • Standard
VII. Excel Camera Tool VIII. Deviation
VIII. Data Queries: Tables • Sorting • Filtering IX. Chebyshev’s Theorem and the Empirical Rules
IX. Sorting Data in Excel X. Standardized Values
X. Pareto Analysis XI. Coefficient of Variation
XI. Filtering Data XII. Measures of Shape
XII. Statistical Methods for Summarizing Data XIII. Excel Descriptive Statistics Tool
XIII. Frequency and Relative Frequency Distributions XIV. Descriptive Statistics for Grouped Data
XIV. Frequency Distributions for Numerical Data XV. Descriptive Statistics for Categorical Data: The Proportion
XV. Excel Histogram Tool XVI. Statistics in PivotTables
XVI. Cumulative Relative Frequency Distributions XVII. Measures of Association
XVII. Percentiles and Quartiles XVIII. Covariance • Correlation • Excel Correlation Tool
XVIII. Cross-Tabulations XIX. Outliers
XIX. Exploring Data Using PivotTables XX. Statistical Thinking in Business Decisions
XX. Pivot Charts XXI. Variability in Samples
XXI. Slicers and PivotTable Dashboards XXII. Problems and Exercises
XXII. Problems and Exercises XXIII. Case: Drout Advertising Research
XXIII. Case: Drout Advertising Research Project XXIV. Case: Performance Lawn Equipment
XXIV. Case: Performance Lawn Equipment

© NEURAL 2018 55
 30. Business Analytics – Module 2 – Parts C & D
Module 2. Part C. Module 2. Part D.
Probability Distributions & Data Modeling Sampling and Estimation
I. Basic Concepts of Probability I. Populations and Samples
II. Probability Rules and Formulas II. Statistical Sampling
III. Joint and Marginal Probability III. Sampling Methods
IV. Conditional Probability IV. Estimating Population Parameters
V. Random Variables and Probability Distributions
V. Unbiased Estimators
VI. Discrete Probability Distributions
VI. Errors in Point Estimation
VII. Expected Value of a Discrete Random Variable
VIII. Using Expected Value in Making Decisions VII. Sampling Error
IX. Variance of a Discrete Random Variable VIII. Understanding Sampling Error
X. Bernoulli Distribution IX. Sampling Distributions
XI. Binomial Distribution X. Sampling Distribution of the Mean
XII. Poisson Distribution XI. Applying the Sampling Distribution of the Mean
XIII. Continuous Probability Distributions XII. Interval Estimates
XIV. Properties of Probability Density Functions XIII. Confidence Intervals
XV. Uniform Distribution XIV. Confidence Interval for the Mean with Known Population Standard Deviation
XVI. Normal Distribution XV. The t-Distribution
XVII. The NORM.INV Function
XVI. Confidence Interval for the Mean with Unknown Population Standard Deviation
XVIII. Standard Normal Distribution
XVII. Confidence Interval for a Proportion
XIX. Using Standard Normal Distribution Tables
XX. Exponential Distribution XVIII. Additional Types of Confidence Intervals
XXI. Continuous Distributions XIX. Using Confidence Intervals for Decision Making
XXII. Random Sampling from Probability Distributions XX. Prediction Intervals
XXIII. Sampling Probability Distributions XXI. Confidence Intervals and Sample Size
XXIV. Probability Distribution Functions in Analytic Solver Platform XXII. Problems and Exercises
XXV. Data Modeling and Distribution Fitting XXIII. Case: Drout Advertising Research Project
XXVI. Goodness of Fit XXIV. Case: Performance Lawn Equipment
XXVII. Distribution Fitting with Analytic Solver Platform
XXVIII. Case: Drout Advertising Research Project
XXIX. Case: Performance Lawn Equipment

© NEURAL 2018 56
 30. Business Analytics – Module 2 – Part E

Module 2. Part E.
Statistical Inference
I. Data Visualization and Dashboards
II. Hypothesis Testing
III. Hypothesis-Testing Procedure
IV. One-Sample Hypothesis Tests
V. Potential Errors in Hypothesis Testing
VI. Selecting the Test Statistic
VII. Drawing a Conclusion
VIII. Two-Tailed Test of Hypothesis for the Mean
IX. p-Values
X. One-Sample Tests for Proportions
XI. Confidence Intervals and Hypothesis Tests
XII. Two-Sample Hypothesis Tests
XIII. Two-Sample Tests for Differences in Means
XIV. Two-Sample Test for Means with Paired Samples
XV. Test for Equality of Variances
XVI. Analysis of Variance (ANOVA)
XVII. Assumptions of ANOVA
XVIII. Chi-Square Test for Independence
XIX. Cautions in Using the Chi-Square Test
XX. Problems and Exercises
XXI. Case: Drout Advertising Research Project
XXII. Case: Performance Lawn Equipment

© NEURAL 2018 57
 30. Business Analytics – Module 3 – Parts A & B
Module 3. Part A. Module 3. Part B.
Trend Lines and Regression Analysis Forecasting Techniques
I. Modeling Relationships and Trends in Data I. Modeling Relationships and Trends in Data
II. Simple Linear Regression II. Qualitative and Judgmental Forecasting
III. Historical Analogy
III. Finding the Best-Fitting Regression Line
IV. The Delphi Method
IV. Least-Squares Regression V. Indicators and Indexes
V. Simple Linear Regression with Excel VI. Statistical Forecasting Models
VI. Regression as Analysis of Variance VII. Forecasting Models for Stationary Time Series
VII. Testing Hypotheses for Regression Coefficients VIII. Moving Average Models
VIII. Confidence Intervals for Regression Coefficients IX. Error Metrics and Forecast Accuracy
X. Exponential Smoothing Models
IX. Residual Analysis and Regression Assumptions
XI. Forecasting Time Series with a Linear Trend
X. Checking Assumptions XII. Double Exponential Smoothing
XI. Multiple Linear Regression XIII. Regression-Based Forecasting for Time Series with a Linear Trend
XII. Building Good Regression Models XIV. Forecasting Time Series with Seasonality
XIII. Correlation and Multicollinearity XV. Regression-Based Seasonal Forecasting Models
XIV. Practical Issues in Regression Modeling XVI. Holt-Winters Forecasting for Seasonal Time Series
XVII. Holt-Winters Models for Forecasting Time Series with Seasonality and Trend 318
XV. Regression with Categorical Independent Variables
XVIII. Selecting Appropriate Time-Series-Based Forecasting Models
XVI. Categorical Variables with More Than Two Levels XIX. Regression Forecasting with Causal Variables
XVII. Regression Models with Nonlinear Terms XX. The Practice of Forecasting
XVIII. Advanced Techniques for Regression Modeling using XLMiner XXI. Problems and Exercises
XIX. Problems and Exercises XXII. Case: Drout Advertising Research Project
XX. Case: Drout Advertising Research Project XXIII. Case: Performance Lawn Equipment
XXI. Case: Performance Lawn Equipment

© NEURAL 2018 58
 30. Business Analytics – Module 3 – Parts C & D
Module 3. Part C. Module 3. Part D.
Data Mining Spreadsheet Modeling & Analysis
I. Modeling Relationships and Trends in Data I. Strategies for Predictive Decision Modeling
II. The Scope of Data Mining II. Building Models Using Simple Mathematics
III. Building Models Using Influence Diagrams
III. Data Exploration and Reduction
IV. Implementing Models on Spreadsheets
IV. Sampling V. Spreadsheet Design • Spreadsheet Quality
V. Data Visualization VI. Spreadsheet Applications in Business Analytics
VI. Dirty Data VII. Models Involving Multiple Time Periods
VII. Cluster Analysis VIII. Single-Period Purchase Decisions
VIII. Classification IX. Overbooking Decisions
X. Model Assumptions, Complexity, and Realism
IX. An Intuitive Explanation of Classification
XI. Data and Models
X. Measuring Classification Performance XII. Developing User-Friendly Excel Applications
XI. Using Training and Validation Data XIII. Data Validation • Range Names
XII. Classifying New Data XIV. Form Controls
XIII. Classification Techniques XV. Analyzing Uncertainty and Model Assumptions
XIV. k-Nearest Neighbors (k-NN) XVI. What-If Analysis
XVII. Data Tables
XV. Discriminant Analysis
XVIII. Scenario Manager
XVI. Logistic Regression XIX. Goal Seek
XVII. Association Rule Mining XX. Model Analysis Using Analytic Solver Platform
XVIII. Cause-and-Effect Modeling XXI. Parametric Sensitivity Analysis
XIX. Problems and Exercises XXII. Tornado Charts
XX. Case: Drout Advertising Research Project XXIII. Problems and Exercises
XXIV. Case: Drout Advertising Research Project
XXI. Case: Performance Lawn Equipment
XXV. Case: Performance Lawn Equipment

© NEURAL 2018 59
 30. Business Analytics – Module 3 – Part E

Module 3. Part E.
Monte Carlo Simulation
I. Modeling Relationships and Trends in Data
II. Spreadsheet Models with Random Variables
III. Monte Carlo Simulation
IV. Monte Carlo Simulation Using Analytic Solver
V. Defining Model Inputs and Output Cells
VI. Running a Simulation
VII. Viewing and Analyzing Results
VIII. New-Product Development Model
IX. Confidence Interval for the Mean
X. Sensitivity Chart
XI. Overlay Charts
XII. Trend Charts
XIII. Box-Whisker Charts
XIV. Simulation Reports
XV. Newsvendor Model
XVI. The Flaw of Averages
XVII. Monte Carlo Simulation using Historical Data
XVIII. Monte Carlo Simulation Using a Fitted Distribution
XIX. Overbooking Model
XX. The Custom Distribution in Analytic Solver Platform
XXI. Cash Budget Model
XXII. Correlating Uncertain Variables
XXIII. Problems and Exercises
XXIV. Case: Drout Advertising Research Project
XXV. Case: Performance Lawn Equipment

© NEURAL 2018 60
 30. Business Analytics – Module 4 – Parts A & B
Module 4: Part A. Module 4. Part B.
Linear Optimization Applications of Linear Optimization
I. Building Linear Optimization Models I. Types of Constraints in Optimization Models
II. Identifying Elements for an Optimization Model II. Process Selection Models
III. Translating Model Information into Mathematical Expressions III. Spreadsheet Design and Solver Reports
IV. More about Constraints IV. Solver Output and Data Visualization
V. Characteristics of Linear Optimization Models V. Blending Models
VI. Linear Optimization Models on Spreadsheets VI. Dealing with Infeasibility
VII. Excel Functions to Avoid in Linear Optimization VII. Portfolio Investment Models
VIII. Solving Linear Optimization Models VIII. Evaluating Risk versus Reward
IX. Using the Standard Solver IX. Scaling Issues in Using Solver
X. Using Premium Solver X. Transportation Models
XI. Solver Answer Report XI. Formatting the Sensitivity Report
XII. Graphical Interpretation of Linear Optimization XII. Degeneracy
XIII. How Solver Works XIII. Multiperiod Production Planning Models
XIV. How Solver Creates Names in Reports XIV. Building Alternative Models
XV. Solver Outcomes and Solution Messages XV. Multiperiod Financial Planning Models
XVI. Unique Optimal Solution XVI. Models with Bounded Variables
XVII. Alternative (Multiple) Optimal Solutions XVII. Auxiliary Variables for Bound Constraints
XVIII. Unbounded Solution XVIII. A Production/Marketing Allocation Model
XIX. Infeasibility XIX. Using Sensitivity Information Correctly
XX. Using Optimization Models for Prediction and Insight XX. Problems and Exercises
XXI. Solver Sensitivity Report XXI. Case: Performance Lawn Equipment
XXII. Using the Sensitivity Report
XXIII. Parameter Analysis in Analytic Solver Platform
XXIV. Problems and Exercises
XXV. Case: Performance Lawn Equipment

© NEURAL 2018 61
 30. Business Analytics – Module 4 – Parts C & D
Module 4: Part C. Module 4. Part D.
Integer Optimization Decision Analysis
I. Solving Models with General Integer Variables I. Formulating Decision Problems
II. Workforce-Scheduling Models II. Decision Strategies without Outcome Probabilities
III. Alternative Optimal Solutions III. Decision Strategies for a Minimize Objective
IV. Integer Optimization Models with Binary Variables IV. Decision Strategies for a Maximize Objective
V. Project-Selection Models V. Decisions with Conflicting Objectives
VI. Using Binary Variables to Model Logical Constraints VI. Decision Strategies with Outcome Probabilities
VII. Location Models VII. Average Payoff Strategy
VIII. Parameter Analysis VIII. Expected Value Strategy
IX. A Customer-Assignment Model for Supply Chain Optimization IX. Evaluating Risk
X. Mixed-Integer Optimization Models X. Decision Trees
XI. Plant Location and Distribution Models XI. Decision Trees and Monte Carlo Simulation
XII. Binary Variables, IF Functions, and Nonlinearities in Model Formulation XII. Decision Trees and Risk
XIII. Fixed-Cost Models XIII. Sensitivity Analysis in Decision Trees
XIV. Problems and Exercises XIV. The Value of Information
XV. Case: Performance Lawn Equipment XV. Decisions with Sample Information
XVI. Bayes’s Rule
XVII. Utility and Decision Making
XVIII. Constructing a Utility Function
XIX. Exponential Utility Functions
XX. Problems and Exercises
XXI. Case: Performance Lawn Equipment

© NEURAL 2018 62
 31. Big Data Analytics - The Twenty-Two Modules

# COURSE MODULE # of Days # COURSE MODULE # of Days

1 Introduction to Big Data Analytics 1 12 Business Metrics 1
2 Excel for Analytics 2
13 Machine Learning – 101 5
3 Introduction to Analytics in “R” 2 (Supervised Learning)
4 Advanced Analytics in “R” 3 14 Machine Learning – 102 3
5 Relational Databases and SQL 3 (Unsupervised Learning)
6 Design Patterns in Statistical Computing 1 15 Machine Learning – 103 3
7 Mastering PYTHON 4 (Advanced Topics)
8 DATA WAREHOUSING 101 2 16 Data Visualization – 101 3
9 DATA WAREHOUSING 102 2 17 Data Visualization - 102 3
10 Mastering HADOOP 3 18 Data Security 2
11 Mastering NoSQL 2 19 Stream Processing 2
20 Natural Language Processing – 101 3
21 Natural Language Processing – 102 3
22 Recommender System 2

© NEURAL 2018 63
 31. Big Data Analytics – Modules 1 and 2

1. Introduction to Big Data Analytics 1 Day 2. Excel for Analytics 2 Days

What is Big Data Analytics ?  Range Names
Global Need for Big Data Analytics  LOOKUP functions
Big Data applications in various industries  INDEX functions
The components of Big Data Analytics  MATCH functions
 Data Science  Text functions
 Advanced Analytics  Dates Function
 Data Warehousing  Circular reference
 Data Visualization and Dashboards  IF statement
 MIS Reporting  Time Functions
How leading companies are harnessing the power of Big Data  Paste Special
Analytics ?  Goal Seek Functions
 COUNTIF, COUNTIFS
 SUMIF, AVERAGEIF
 Sorting
 Tables
 Importing data
 Pivot Tables
 Filtering data and Removing Duplicates
 Consolidating Data
 Graphs and Charts

© NEURAL 2018 64
 31. Big Data Analytics – Modules 3 and 4

3. Introduction to Analytics in “R” 2 Days 4. Advanced Analytics in “R” 3 Days

Section 1: BASICS  Frequency Distributions
 Introduction & Preliminaries  The Mean, Median and Mode, and Other Measures of Central
 Basic Syntax Tendency
 Data types & data Structures  The Standard Deviation and Other Measures of Dispersion
 Simple manipulations of numbers and vectors  Moments, Skewness and Kurtosis
Section 2: DATA MANIPULATION  Elementary Probability Theory
 Importing Data  Binomial, Normal and Poisson Distributions
 Exporting Data  Random Variables
 Manipulation of Data Structures  Multiple Random Variables
 Saving output in external files  Random Processes
 Elementary Sampling Theory
Section 3: GRAPHICS with R
 Curve Fitting and Method of Least Squares
 Overview of Graphics in R
 Correlation Theory
 Dot plot, line plot, bar plot
 Estimation Theory
Section 4: WRITING YOUR OWN FUNCTIONS
 Loops and conditional execution
 Named arguments and defaults
 Simple examples
Section 5: STATISTICS with R
 Basic statistics functions

© NEURAL 2018 65
 31. Big Data Analytics – Modules 5 and 6

5. Relational Databases and SQL 3 Days 6. Design Patterns in Statistical Computing 1 Day
 RDBMS concepts  Brief history of Statistical Programming, Comparison between
 Data types statistical programming languages
 Acid test  How focusing on statistical programming paradigms can result in
 DDL / DML
improved code and faster learning of new languages
 Simple DDL statements
 Simple Query and aggregate functions  Fundamental paradigms
 Inner Join  Vectors as the fundamental DS
 Outer Join  Vectorization and Vectorized code
 Class room exercises  Data Frames
 Other DML statements (Insert, Update, Delete)  Relational Operator patterns across languages
 Sub query and cursors  Hands-on with R
 QoS Requirements
 Comparison of Python examples with R
 High Volume
 Scalability
 Overall conceptual architecture of server
 Physical implementations
 Various Indexes,
 Partitions
 High Availability
 Transactional integrity.
 Security
 Access control
 Audit logs
 Classroom exercises

© NEURAL 2018 66
 31. Big Data Analytics – Modules 7 and 8
7. Mastering PYTHON 4 Days 8. DATA WAREHOUSING - 101 2 Days
 Introduction and Motivation Data Warehouse Architecture
Operations System vs. DW Systems
 Hello World To Variable Data Quality
 List And Tuple Discussion ETL
 List Comprehension DW Vs. Data Mart
 Conditional Statement Status of DW Systems
Basics of Data Warehouse Design
 Loops Discussion ER Modelling Vs. Dimension Modelling
 Functions Dimension Modelling – Facts and Dimensions
 Dictionary Designing Star Schema
DW Keys
 Error handling Discussion OLAP using Pivot table of Excel
 Solving Practice of some Project in Python Advanced Data Warehouse Design
 Object Oriented Programming using Python Multiple Hierarchies
 Error Handling DW BUS Matrix Architecture
Rapidly Changing Monster Dimension
 Module Programming Fact less fact tables
 NumPy , SciPy Dimension Tables in Multiple Roles
 Pandas , MatplotLib Degenerate Dimension
Junk Dimension
 Solving Practice of some Project in Python for data Snow flaking
analysis Different type of Facts
Fine Tuning Design
Aggregates Building
Partitioning, Indexing
© NEURAL 2018 67
 31. Big Data Analytics – Modules 9 and 10
9. DATA WAREHOUSING - 102 2 Days 10. Mastering HADOOP 3 Days
ISSUES INVOLVED IN DATA WAREHOUSE PROJECT  Introduction to Hadoop
 Assess Readiness  Hadoopable Problems - Uses of Big Data analytics in various
 Business Requirements industries like Telecom, E- commerce, Finance and Insurance etc
 Data Track, Analysis Track  Problems with Traditional Large-Scale Systems & Existing Data
 Deployment & Maintenance analytics Architecture
DATA WAREHOUSE DESIGN UNDER VARIOUS SCENARIOS  Key technology foundations required for Big Data
(EXERCISES)  Comparison of traditional data management systems with Big Data
management systems
ADVANCED DATA WAREHOUSE DESIGN CASE STUDY I
 Evaluate key framework requirements for Big Data analytics
 Designing Data Model
Apache projects in the Hadoop Ecosystem
 Designing & Creating DW structure
 Hadoop Ecosystem & Hadoop 2.x core components
 Designing & Creating Staging Area Structure
 Explain the relevance of real-time data
 Designing & Creating E-T-L Audit Tables
 Explain how to use Big Data and real-time data as a Business planning
 Populating default data and static dimension
tool
 Designing E-T-L Workflow & Loading DW
 HDFS
 Creating and Querying Cubes
 YARN and MapReduce
NEW TRENDS  Pig
 Operations Data Store  Hive
 Real Time Data Warehouse  Hbase
 DW from Semi-structured Data  Sqoop
BIG DATA CASE STUDY II – BUILDING DATA WAREHOUSE  Flume
 Oozie
© NEURAL 2018 68
 31. Big Data Analytics – Modules 11 and 12
11. Mastering NoSQL 2 Days 12. Business Metrics 1 Day
 Data Science and NoSQL  Why metrics matter?
 Various types of NoSQL dbs  Defining good business metrics for data driven decisions
 Consistency and the CAP theorem  Segments, cohorts and financial analysis
 A quick survey of NoSQL database systems  Designing the metric architecture of a business
 Deep dive into 2 NoSQL dbs  E-commerce
 Using DB1 with Python and R  SaaS
 Using DB2 with Python and R
 Case study: Building a real world NoSQL application
 Hands-on with mongodb operations
 Interacting with Twitter REST API to collect tweets and
perform text classification (sentiment analysis) on them

© NEURAL 2018 69
 31. Big Data Analytics – Modules 13 and 14
13. Machine Learning – 101 5 Days 14. Machine Learning – 102 3 Days
(Supervised Learning) (Un-supervised Learning)
Introduction to Machine Learning Unsupervised Learning – I
 What is Machine Leaning (Cluster Analysis)
 What is Data mining Basic Concepts
 Some practical examples Partitioning Methods
 Steps in KDD K-means
Supervised Learning- I (Regression) K-medoids
 Basic concepts Hierarchical Methods
 Linear Regression Diana
 Multiple Linear Regression Density based Methods
 Logistic Regression DBSCAN
Supervised Learning- II (Classification) Evaluation of Clustering
 Basic Concepts
 Decision Tree, Random Forest Unsupervised Learning- II
 Bayes Classification (Associations & Correlations)
 Rule-Based Classification Basic Concepts
 Classification with ANN Frequent Itemset Mining Methods
 SVM classification Apriori
 Model Evaluation and Selection Improving the Efficiency of Apriori
 Techniques to Improve Classification Accuracy: Ensemble FPGrowth
Methods ECLAT: Frequent Pattern Mining with Vertical Data Format
 Bagging, Boosting Pattern Evaluation Methods
© NEURAL 2018 70
 31. Big Data Analytics – Modules 15 and 16
15. Machine Learning – 103
(Advanced Topics)
Introduction to Machine Learning Workflow
 Introduction to Machine Learning with Python
 Setting up a Machine Learning Pipeline with Python
Advanced topics in machine learning
 Hyperparameter tuning (grid and random search)
 Cross-validation
Hands-on Projects
 Predicting mortality in Titanic dataset
 Benchmarking ML algorithms on the MNIST dataset.
 Exploring Hyper parameter tuning
 Cross-validation
© NEURAL 2018
3 Days 16. Data Visualization – 101 3 Days
 Visual Cognition
 Perception, Orientation
 Creation of Different Chart types and Interpretation
 Commonly used features in Tableau
 Principles of Analytical Design
 Elimination of Visual Clutter
 How to use filters extensively
 Creation of Groups
 Create and modify Hierarchy of data for Drill ups & Drill downs
 How to create a Basic Dashboard with interactivity
 How to create a Basic Story book
 Effective display of quantitative information
 Visualization of Time Series
 How to incrementally enhance visualization using calculated fields
 Variations in Geo Spatial Analysis
 Math, Text, Logical & Date calculations
71
 31. Big Data Analytics – Modules 17 and 18
17. Data Visualization – 102 3 Days 18. Data Security 2 Days
 Using Parameter controls to perform the following-  Managing affairs of security: conventional efforts and their limitation
- Dynamic Multi Dimensions for various scenarios  Imperatives of Big Data Analytics to security
- Create What if Scenarios  Four dimensions of security analytics
- KPI Controls  External Intelligence or Situational Awareness feeds
 Quick Table Calculations  Behavior analytics of systems and users
 Create special chart types  Consumer analytics for threat management
 Bollinger, Pareto, Funnel, Waterfall, Control charts, Word  Analytics for security life cycle governance
clouds  National Security imperatives of Big Data Analytics
 Generate Visual Insights  Future of security analytics
 Separate out noise from facts. Rapid analysis of large data  Ethical, privacy and governance issues of security analytics
sets
 Power of Sets
 Work Sheet & Dashboard Actions
 Guided Analytics
 Formatting
 Putting it all together – In class hands on exercise: Industry
example of visual
 Putting it all together – In class hands on exercise: Industry
example of visual
 storytelling and visual analytics

© NEURAL 2018 72
 31. Big Data Analytics – Modules 19 and 20
19. Stream Processing 2 Days 20. Natural Language Processing – 101 3 Days
 Introduction to Stream Processing; Why is it necessary Lexical Module
 Example of problems and contexts for stream processing  Fundamental Concepts - Regular Expressions - Tokenization and
 Architecture of stream processing systems Sentence
 Introduction to Spark streaming library with pySpark  Segmentation - Normalization - Minimum Edit Distance -
 Streaming Context and D Streams Morphology
 Input D Streams and Receivers  N-Grams
 Transformations on Dstreams  Probability - Language Modeling (Evaluation & Smoothing)
 Output Operations on Dstreams
 Caching / Persistence Syntactic Module
 Hands-on with Spark streaming with pySpark  Part-of-Speech and Named Entity Tagging
 Word Classes - Rule based and Stochastic - Hidden Markov Model -
Maximum Entropy
 Parsing Techniques
 Top-Down and Bottom-Up – Ambiguity

Semantic Module
 Lexical and Computational Semantics
 WordNet - Relations - Word Sense Disambiguation
 Information Retrieval
 Vector Space Model - TF-IDF – Evaluation Measures

© NEURAL 2018 73
 31. Big Data Analytics – Modules 21 and 22
21. Natural Language Processing – 102 3 Days 22. Recommender Systems 2 Days
Application Module – I  Introduction to Recommender System
 Text Classification and Sentiment Analysis  Types of Recommender Systems
 Naïve Bayes – PMI - Sentiment Components - Co-reference  Related algorithms
Resolution – Social Media
1. Collaborative Filtering
 Data – Tracking
2. Content-based
Application Module – II 3. Hybrid models
 Machine Translation  Evaluation of Recommender System
 Language Similarities and Differences  Hands-on case study
 Lexical and Syntactic Transfer – RBMT– EBMT - SMT
 Question Answering and Summarization
 Question Classes and Processing – Answer Extraction –
Textual Entailment - Key-phrase
 Extraction – Single and Multi-Document Summarization
 Future of NLP

© NEURAL 2018 74
 Our Partners

Dr. MAHENDRA MEHTA Mr. RAJ MITTAL Dr. RANJAN CHAKRAVARTY Mr. RAJAT BHATIA
PhD Managing Partner PhD

© NEURAL 2018 75
 Work Experience of our Partners & Principals
Our Partners & Instructors have a combined work experience of more than 100 years gained at top tier
investment and commercial banks, hedge funds and strategy consulting firms in global financial centers such as
New York, London, Mumbai, Hong Kong, Singapore, Sydney and Zurich.

© NEURAL 2018 76
 Educational Backgrounds of our Partners & Principals
All our Partners & Principals have a PhD or a Post Doctoral Fellowship or a dual Masters degree from
the following top tier universities

© NEURAL 2018 77
 RAJ MITTAL, Managing Partner
Mr. Raj Mittal, is the Managing Partner of Neural International Partners, located at 110 Wall Street, New York.
Raj retired after a 29 year global career with Citigroup where he was a Managing Director and Worldwide
Head of Operations Risk Analytics in his last assignment, based in New York.
Ex Managing Director & Global Head of Operational Risk Analytics, Citigroup, New York
► Senior Banking Executive with 29 years of global career with Citigroup
► Over 10 years of Operational Risk Management experience
► Deep domain expertise and implementation experience across Risk Management and Quantitative frameworks for
Operation Risk.
► Extensive interface with Regulators in the US and UK on Operational Risk including Economic / Regulatory Capital
and Stress Testing methodologies.

Operational Risk thought leadership - Invited speaker at various forums including:

► American Bankers Association
► International Institute of Finance
► The Clearing House discussions on Basel’s new proposed Standardized Measurement Approach for Operational Risk
Regulatory Capital
► Society of Actuaries Annual meeting, New York
► Global Association of Risk Professionals, New York
► IBBM Basel II Conference, Kuala Lumpur
► NYU Stern Graduate School of Business, New York

Education:
► MBA, Stern Graduate School of Business, New York University
► M.A . Economics, Delhi School of Economics, Delhi University

© NEURAL 2018 78
 Dr. MAHENDRA MEHTA, PhD
Dr. Mahendra Mehta, is the Chairman & Managing Director of Neural Technologies & Software Ltd, as well as one of the
Founding Partners of Neural International Partners.

He was also the Director of the BIG DATA ANALYTICS program at the SP Jain School of Global Management.

Dr. Mehta is a recognized international expert on Derivatives and Risk Management and has taught more than one
thousand courses on Market, Credit and Operational Risk Management, Derivative Products, Treasury Management,
Artificial Intelligence and Mathematical Finance.

His expertise covers Risk Management (Market, Credit, Operational and CVA), Quantitative Trading Systems, Basel II / III
implementation, Kalman Filters, Machine Learning, Big Data Analytics and Artificial Intelligence.
► Dr. Mehta was the Head of Analytics, India and a Vice President in Citibank’s Asia Pacific Analytics group from 1988 to 1995.
 At Citibank, he developed fully automated quantitative trading strategies in collaboration with Dr. Pratap Sondhi, the Global Head of Analytics for Citibank
 These trading strategies were deployed in Citibank London and Tokyo to trade major currency pairs
► Subsequently, he served as the Head of RISK Management and the Head of Derivatives at the Saudi American Bank (a Citibank subsidiary), from 1995 to 2002
► Prior to his career in Banking & Finance, Dr. Mehta was the Chief Design Engineer (Radar Systems) of the Light Combat Aircraft project for Hindustan
Aeronautics Limited, Bangalore and the Indian Air Force
► He has regularly conducted finance courses in Turkey, Poland, South Africa, Saudi Arabia, India, Hungary and UAE. He has lectured widely on application of
Artificial Intelligence techniques in trading
► In particular, he has presented papers on hedging and risk management at the London Business School, The Indian Institute of Management and the Swiss Federal
Institute of Technology (ETH), Zurich
► He has published more than 20 articles on engineering and financial sciences in a variety of journals and co-authored Neural Networks in Capital Markets, 1995
► Dr. Mehta earned a PhD from the Indian Institute of Technology, Bombay and a Bachelors of Technology from the Indian Institute of Technology, Kharagpur
► His PhD thesis was in the area of adaptive Kalman filters and Neural Networks

© NEURAL 2018 79
 Dr. RANJAN CHAKRAVARTY, PhD
Dr. Ranjan Chakravarty, is the former Chief Risk Officer of the Singapore Mercantile Exchange. Prior to that, Dr.
Chakravarty served as the Managing Director and Head of Global Capital Markets Valuation and Product Control at the
DBS Bank’s worldwide headquarters in Singapore. He also served as a Managing Director and Head of Risk Management at
Hypovereins Bank for the Asia Pacific Region. As a member of the bank’s Executive Committee, he was responsible for the
risks of a US$ 18 billion balance sheet.
Currently, Dr. Chakravarty is a Senior Professor of Finance at a well known business school in India and also one of the
Founding Partners of Neural International Partners.

In the USA, Dr. Chakravarty worked as a Senior Vice President with GE Capital, Stamford, CT with responsibility for managing a US$ One Billion US high yield bond
portfolio and a US$ 700 million US preferred stock portfolio. Other roles included Vice President of Risk Management with Bank Boston in Boston, Associate, Bankers
Trust, New York and Proprietary Trader at Millennium Partners, New York.
His product knowledge and experience covers: Fixed Income Relative Value, Proprietary FX Trading, Credit Derivatives, US High Yield Bonds, Emerging Market
Bonds (Latin America and Asia Pacific), Interest Rate Derivatives, Equity Derivatives, Hybrid Derivatives, Convertible Bonds, Asset Swaps, Market Microstructure and
Program Trading Strategies.
He published a highly quoted research paper in the Journal of Banking and Finance (1995). This paper is a pioneering work on intra-day trading, bringing together
management science, econometrics and high frequency data analysis. It identifies and rigorously explains the unseen but powerful factors that drive intra-day patterns in
the bid-offer spread. He also published a paper on Applied Econometrics in Ciencia Ergo Sum (1995).
Dr. Chakravarty earned a PhD in Finance from the University of Texas at Arlington. His thesis was in the area of Market Microstructure: Intra-day Pricing and
Volatility Patterns.
He is a member of Omicron Delta Epsilon, International Honor Society in Economics. He was also a Post Doctoral Fellow at the Graduate School of Business in
Columbia University, New York City.

© NEURAL 2018 80
 RAJAT BHATIA
Rajat Bhatia is the Founder & CEO of Neural Capital and a Partner in Neural International Partners. He also serves as the Dean of the Indian Institute of Quantitative Finance and the Chairman
of the Board of Advisors of Invenzo Labs. After working with many top tier investment banks in a wide range of areas in the global markets, he became an entrepreneur in 2003.
During his professional career, Rajat worked with the following His areas of expertise include:
international banks and consulting firms: ► Alternative Investments
► Citibank Global Asset Management, Alternative Investment Strategies, London  Hedge Funds and Fund of Hedge Funds
► Lehman Brothers International, Global Derivative Products Group, London  Private Equity
► Merrill Lynch Capital Markets, Hong Kong ► Collateralized Loan and Bond Obligations
► Industrial Bank of Japan, London ► Debt Capital Markets
► Citicorp Investment Bank, Proprietary FX Trading Group, Mumbai, India ► Proprietary Trading and Quantitative Trading Strategies
► Financial Engineering LLC, Delray Beach, Florida  Foreign Exchange
► Williams Energy, Tulsa, Oklahoma  Equity Indices
► Booz.Allen & Hamilton, Sydney, Australia  Commodities
► Andersen Consulting, London  Fixed Income
► Quantitative Financial Modeling
As an entrepreneur, Rajat has been associated with several start ups: ► Derivatives Structuring & Marketing
► Neural Capital, Delaware and India  Credit
► Neural Trading Strategies, India  Foreign Exchange
► Artificial Intelligence Capital LLC, Florida  Equity
► Financial Engineering LLC, Florida  Fixed Income and
► India FX, London and India  Commodities
► GREENTECH, India ► Corporate Finance, M&A
► Advanced Solar Devices, California
► Rajat was educated at Columbia University, New York City where he was a Dean’s Fellow at the School of International Affairs from 1991 to 1992. He also earned an MBA with a major in Finance &
Information Systems from the Indian Institute of Management, Ahmedabad (1985-87) and a first class degree with Honors in Economics from St Stephen’s College, Delhi (1982-85). He was the recipient of the
Founder’s Gold Medal at La Martiniere for Boys, Calcutta and the Cambridge Essay Prize at St. Stephen’s College, Delhi.
► In September 2007, he published a very prescient paper in the Hedge Fund Journal, London which was titled “Financial Chernobyl or Manageable Risk – The brewing Storm in ub-prime and CDO Markets”.
This paper predicted the onset of the 2007-2008 global financial crisis at a time when Ben Bernanke and Hank Paulson were telling the world that all is well with the global financial system.
► He is also the principal author of a 181 page white paper titled the “Cutting Edge of Operational Risk Management” which is now being developed into a book of the same name.
► As a student at the Indian Institute of Management, Ahmedabad, he published papers on “Currency & Interest Rate Swaps”, “Offshore Banking” and “Interest Rate Caps, Collars and Floors” in the Financial
Express and the Economic Times. In 2005, he published an extensive two part paper on “Neural Networks in the Financial Markets”.
► He has taught programs on Fixed Income Markets, Swaps Markets, Commodity Markets, Equity Markets, Mortgage Backed Securities, Credit Derivatives, Structured Products & Financial Engineering, Portfolio
Management, Alternative Investments, Derivative Products, Quantitative Trading, Market Risk, Credit Risk and Operational Risk at Lehman Brothers, London, BlackRock, New York, Deutsche Bank, India
Barclays Technology Center, India and Macquarie Bank Global Financial Control, India, Credit Suisse, the Saudi American Bank and at a School of Global Management in Singapore.
► In 2016 and in 2017, he was an invited Speaker and Moderator of a panel of experts at the Asia Pacific Fixed Income Leaders’ Summit in Singapore.
© NEURAL 2018 81
 THANK YOU

NEURAL INTERNATIONAL PARTNERS

© NEURAL 2018
110 Wall Street, New York City, NY 10005 82