Master advanced risk management strategies tailored for financial institutions and elevate your expertise in safeguarding against multifaceted financial risks. This course is designed for experienced finance professionals eager to create a robust risk management framework that enhances regulatory compliance and financial stability.

Risk Management Framework Course for Financial Experts

# Unlock the Secrets of Effective Risk Management!

Embark on a transformative journey where you will master advanced risk management strategies tailored for financial institutions. This course is designed for seasoned finance professionals eager to elevate their expertise in risk management and develop frameworks that can withstand the tests of an ever-evolving financial landscape. Prepare to challenge conventional wisdom and emerge as a pioneer in safeguarding your institution against multifaceted financial risks.


### Who is it for?

This course is crafted specifically for experienced finance professionals who possess a solid understanding of financial principles but are eager to specialize in risk management.

- Finance professionals looking to enhance their skills in risk management.
- Risk management teams seeking advanced techniques and frameworks.
- Regulatory bodies aiming for better compliance standards.
- Financial institution management focused on stability and risk mitigation.

**Recommended skill level: Advanced**


### Prerequisites

Before diving into this advanced course, ensure you meet the following prerequisites:

- 💡 Strong knowledge of financial principles
- 💼 Experience in finance or investment roles
- 📊 Familiarity with basic risk concepts
- 📜 Understanding of regulatory frameworks in finance
- 🔍 Analytical skills for risk assessment

### What's inside

This course is packed with engaging content designed to provide you with practical skills and knowledge:

- Decoding Financial Risks: Types and Impacts
- Risk Assessment Techniques: Tools of the Trade
- Navigating Regulatory Landscapes
- Crafting Effective Risk Mitigation Strategies
- Integrating Risk Management into Organizational Frameworks
- Finalizing Your Risk Management Framework

**Interactive Quizzes**

Quizzes will challenge your understanding and retention of key concepts, ensuring you are well-prepared for real-world applications.

**Homework**

Each module includes hands-on assignments that reinforce your learning and showcase your skills, such as developing risk assessments and compliance checklists.

**Practical Project**

Your capstone project involves creating a comprehensive risk management framework tailored to your institution's needs, demonstrating your mastery of course concepts.

**Before You Start**

Before you start, familiarize yourself with the course materials and set aside dedicated time for study and assignments to ensure your success.

**Books to Read**

Recommended readings will enhance your understanding of risk management theories and practices, providing a solid foundation for your coursework.

**Glossary**

A glossary of key terms will be provided to help you navigate the complex language of risk management.


### What will you learn

By the end of this course, you will:

- Understand various financial risks and their implications.
- Create actionable risk assessment strategies.
- Implement a robust risk management framework tailored to your institution's needs.
- Enhance regulatory compliance through a thorough understanding of relevant regulations.
- Improve overall financial stability by integrating effective risk mitigation strategies.

**Time to complete this course: 10 weeks, with a commitment of 15-20 hours per week for study, practical assignments, and self-assessment.**


### Enroll now to transform your career in risk management!

A solid grasp of financial concepts is crucial as it forms the foundation for understanding complex risk management strategies and their implications.

Strong Knowledge of Financial Principles

Hands-on experience in finance equips you with practical insights into market behaviors, making it easier to relate theoretical concepts to real-world applications.

Experience in Finance or Investment Roles

Understanding fundamental risk concepts is vital for diving deeper into advanced risk management techniques and frameworks you'll explore in this course.

Familiarity with Basic Risk Concepts

Knowledge of regulatory requirements helps ensure that your risk management framework aligns with compliance standards, which is essential for financial institutions.

Understanding of Regulatory Frameworks in Finance

## Unlock the Secrets of Effective Risk Management!

Embark on a transformative journey where you will master advanced risk management strategies tailored for financial institutions. This course is designed for seasoned finance professionals eager to elevate their expertise in risk management and develop frameworks that can withstand the tests of an ever-evolving financial landscape. Prepare to challenge conventional wisdom and emerge as a pioneer in safeguarding your institution against multifaceted financial risks.

### Who is it For:
This course is crafted specifically for experienced finance professionals who possess a solid understanding of financial principles but are eager to specialize in risk management.

- **Skill Level:** Advanced
- **Audience:** 
  - Finance professionals looking to enhance their skills in risk management.
  - Risk management teams seeking advanced techniques and frameworks.
  - Regulatory bodies aiming for better compliance standards.
  - Financial institution management focused on stability and risk mitigation.

### Prerequisites:
Before diving into this advanced course, ensure you meet the following prerequisites:
- Strong knowledge of financial principles
- Experience in finance or investment roles
- Familiarity with basic risk concepts
- Understanding of regulatory frameworks in finance
- Analytical skills for risk assessment

### What's Inside:
This course is packed with engaging content designed to provide you with practical skills and knowledge:
- **Modules:**
  - Decoding Financial Risks: Types and Impacts
  - Risk Assessment Techniques: Tools of the Trade
  - Navigating Regulatory Landscapes
  - Crafting Effective Risk Mitigation Strategies
  - Integrating Risk Management into Organizational Frameworks
  - Finalizing Your Risk Management Framework

- **Quizzes:** Quizzes will challenge your understanding and retention of key concepts, ensuring you are well-prepared for real-world applications.
- **Assignments:** Each module includes hands-on assignments that reinforce your learning and showcase your skills, such as developing risk assessments and compliance checklists.
- **Practical Project:** Your capstone project involves creating a comprehensive risk management framework tailored to your institution's needs, demonstrating your mastery of course concepts.
- **Before You Start:** Familiarize yourself with the course materials and set aside dedicated time for study and assignments to ensure your success.
- **Books to Read:** Recommended readings will enhance your understanding of risk management theories and practices, providing a solid foundation for your coursework.
- **Glossary:** A glossary of key terms will be provided to help you navigate the complex language of risk management.

### What Will You Learn:
By the end of this course, you will:
- Understand various financial risks and their implications.
- Create actionable risk assessment strategies.
- Implement a robust risk management framework tailored to your institution's needs.
- Enhance regulatory compliance through a thorough understanding of relevant regulations.
- Improve overall financial stability by integrating effective risk mitigation strategies.

### Time to Complete:
10 weeks, with a commitment of 15-20 hours per week for study, practical assignments, and self-assessment.

### Enroll now to transform your career in risk management!

The process of identifying, assessing, and controlling financial risks to minimize their impact on an organization.

Potential losses that can arise from various factors, including market fluctuations, credit defaults, or operational failures.

Adhering to laws, regulations, and guidelines governing financial practices to ensure legal and ethical operations.

A systematic process of evaluating potential risks and their impact to prioritize risk management efforts.

A condition where the financial system operates efficiently and can withstand economic shocks without major disruptions.

The risk of losses due to changes in market prices, such as stock prices, interest rates, or currency values.

The potential for loss due to a borrower’s failure to repay a loan or meet contractual obligations.

The risk of loss resulting from inadequate or failed internal processes, people, and systems.

Strategies and actions taken to reduce the likelihood or impact of identified risks.

An evaluation method that relies on subjective judgment to assess risks based on experience and intuition.

An evaluation method that uses numerical data and statistical techniques to measure risks.

A tool used to prioritize risks by assessing their likelihood and impact, often visualized in a grid format.

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats related to risk strategies.

A detailed list of regulatory requirements and best practices to ensure adherence to compliance standards.

The process of engaging and informing stakeholders about risk management initiatives and their implications.

A strategy outlining how to incorporate risk management frameworks into existing organizational structures.

A concise overview of a report or proposal, highlighting key points for quick understanding by decision-makers.

An in-depth analysis of a specific instance or example of risk management practices in real-world scenarios.

A practical exercise that replicates potential risk scenarios to evaluate responses and strategies.

A process where colleagues evaluate each other's work to provide constructive feedback and improve quality.

A comprehensive display of a completed project or framework, showcasing insights and strategies developed throughout the course.

Practical and implementable plans designed to address identified risks effectively.

A structured document that outlines the components and processes of a risk management framework.

An organization that provides financial services, such as banks, investment firms, and insurance companies.

Market risks refer to the potential losses that financial institutions may face due to fluctuations in market prices. These risks can arise from various sources, including changes in interest rates, currency exchange rates, and commodity prices. Understanding the dynamics of these risks is essential for effective risk management.

Market risks are influenced by a multitude of factors, including economic indicators, geopolitical events, and market sentiment. For instance, a sudden increase in interest rates can lead to a decline in bond prices, impacting the portfolios of financial institutions. Similarly, economic downturns can result in increased volatility in equity markets.

Tip: Keep an eye on economic indicators such as GDP growth rates, inflation rates, and employment statistics, as these can provide valuable insights into potential market risks.

Interest rates play a pivotal role in market risk dynamics. A rise in interest rates can lead to higher borrowing costs, affecting consumer spending and business investments. This, in turn, can cause stock prices to fall, leading to increased market volatility. Understanding the relationship between interest rates and market performance is crucial for risk assessment.

To effectively assess market risks, finance professionals must analyze market trends using various analytical techniques. This includes:
- **Technical Analysis:** Examining historical price movements to predict future trends.
- **Fundamental Analysis:** Evaluating economic indicators and financial statements to gauge market health.
- **Sentiment Analysis:** Understanding market psychology through surveys and social media trends.

Creating Assessments Based on Simulated Data

Simulated data can be an invaluable tool for assessing market risks. By creating hypothetical scenarios, finance professionals can evaluate how their institutions might respond to various market conditions. This approach allows for the identification of potential vulnerabilities and the development of targeted risk mitigation strategies.

Common Pitfall: Relying solely on historical data without considering current market conditions can lead to inaccurate assessments. Always incorporate real-time data and trends into your analyses.

Hands-On Exercise: Market Risk Assessment Simulation

1. Choose a financial instrument (e.g., stocks, bonds, commodities) and gather historical data for the past year.
2. Use the techniques discussed (technical, fundamental, sentiment analysis) to assess the current market risk.
3. Create a report detailing your findings and proposed strategies for mitigating identified risks.

Understanding market risks and their implications is vital for developing effective risk management strategies. By analyzing market trends and employing various assessment techniques, finance professionals can better prepare their institutions for potential market disruptions.

Homework: Market Risk Analysis

Unraveling Market Risks: Dynamics and Implications

Market Risks Assessment Quiz

Credit risk is the possibility that a borrower will default on their obligations, leading to financial losses for lenders. Understanding the factors that contribute to credit risk is essential for financial professionals aiming to mitigate potential defaults.

Defaults can occur for various reasons, including economic downturns, poor management decisions, or unexpected events (like natural disasters). Here are some common factors that lead to defaults:

Economic conditions, such as recession or inflation.

Borrower characteristics, including credit history and financial stability.

Industry-specific risks that may impact the borrower's ability to repay.

Changes in regulatory environments that affect borrower operations.

🔍 **Tip:** Always analyze the broader economic indicators before assessing a borrower's risk profile. This will provide a more comprehensive view of potential defaults.

Methodologies for Assessing Creditworthiness

Evaluating a borrower's creditworthiness involves several methodologies. Here are key techniques used in the industry:

**Credit Scoring Models:** Utilizes statistical methods to predict the likelihood of default based on historical data.

**Qualitative Assessment:** Involves subjective evaluation of the borrower's management quality, market position, and operational efficiency.

**Financial Ratios Analysis:** Key ratios such as Debt-to-Income (DTI) and Current Ratio help assess financial health.

const borrowerRisk = (debt, income) => {
  return debt / income;
};

Implications for Lending and Financial Stability

Understanding credit risk is crucial for lenders as it directly impacts lending decisions and financial stability. Here are some implications:

Higher defaults can lead to increased provisions for bad debts, affecting profitability.

Poor credit assessments can result in lending to high-risk borrowers, increasing exposure.

Effective credit risk management enhances the overall financial stability of institutions.

📊 **Common Pitfall:** Relying solely on credit scores without considering qualitative factors can lead to poor lending decisions.

Practical Exercise: Evaluating Credit Risk

To apply what you've learned, engage in the following practical exercise:

Select a hypothetical borrower and gather financial statements.

Calculate the Debt-to-Income ratio and analyze its implications.

Perform a qualitative assessment based on management quality and market position.

Write a brief report summarizing your findings and recommendations.

"Risk management is not about avoiding risks, but about understanding and managing them effectively." - Unknown

Real-World Example: The 2008 Financial Crisis

The 2008 financial crisis was a stark reminder of the consequences of inadequate credit risk assessment. Financial institutions heavily invested in subprime mortgages without thoroughly evaluating borrowers' creditworthiness, leading to widespread defaults and economic turmoil. This case underscores the importance of robust credit risk evaluation.

Credit Risk Evaluation Assignment

Understanding Credit Risks: Defaults and Losses

Credit Risk Assessment Quiz

Operational risks arise from inadequate or failed internal processes, people, systems, or external events. These can include everything from fraud and system failures to natural disasters and regulatory breaches. Understanding the categories of operational risks is crucial for developing effective mitigation strategies.

Fraud Risk: Risks arising from intentional deception to secure unfair or unlawful gain.

System Risk: Risks associated with technology failures or cyberattacks.

Process Risk: Risks related to inadequate processes or human errors.

External Risk: Risks from external events such as natural disasters or regulatory changes.

🔍 **Tip:** Always categorize risks to develop tailored mitigation strategies that address each specific type.

Assessment Techniques for Operational Risks

Effective assessment techniques are essential for accurately identifying operational risks. These techniques can be qualitative, quantitative, or a combination of both.

"What gets measured gets managed." - Peter Drucker

Mitigation Strategies for Operational Risks

Mitigation strategies are essential for reducing the impact of operational risks. These can include process improvements, training programs, and technology upgrades.

Implementing robust internal controls to prevent fraud.

Regular training for employees to minimize human error.

Investing in technology to enhance system security.

⚠️ **Common Pitfall:** Neglecting to update mitigation strategies can leave institutions vulnerable to evolving risks.

Conducting a SWOT Analysis on Operational Risk Scenarios

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a powerful tool for evaluating operational risks. It helps in identifying internal strengths and weaknesses and external opportunities and threats related to operational risks.

Identify the operational risk scenario you want to analyze.

List the strengths related to your current risk management practices.

Identify weaknesses that could hinder effective risk management.

Explore opportunities for improving risk management.

Identify potential threats that could impact your operational risk management.

📝 **Exercise:** Conduct a SWOT analysis on a recent operational risk event in your institution, documenting your findings and proposed strategies.

Homework: Operational Risks Analysis

Operational Risks: Identification and Mitigation Strategies

Operational Risks Quiz

Financial risks can be broadly categorized into three primary types: market, credit, and operational risks. Each of these risks presents unique challenges and implications for financial institutions, and understanding their interrelations is key to developing a robust risk management framework.

Market risks arise from fluctuations in market prices, including interest rates, foreign exchange rates, and commodity prices. These risks can significantly impact an institution's financial performance. For instance, a sudden increase in interest rates can lead to decreased asset values and increased liabilities.

🔑 **Key Insight:** Market risks are not isolated; they often influence and are influenced by credit and operational risks. For example, a downturn in the market can lead to higher default rates in credit risk.

Credit risks pertain to the potential for loss due to a borrower's failure to repay a loan or meet contractual obligations. Factors such as economic downturns, industry-specific challenges, and borrower creditworthiness play a crucial role in assessing credit risk.

// Example of a simple credit risk assessment function in Python:
def assess_credit_risk(credit_score, income, debt):
    if credit_score < 600:
        return 'High Risk'
    elif income < debt:
        return 'Medium Risk'
    else:
        return 'Low Risk'

Operational risks stem from failures in internal processes, systems, or external events that disrupt business operations. This includes risks related to technology failures, fraud, and human error. Understanding these risks is critical for maintaining operational integrity.

⚠️ **Common Pitfall:** Neglecting operational risks can lead to significant financial losses. For example, a cyber-attack can not only result in immediate financial loss but also damage an institution's reputation.

The interplay between market, credit, and operational risks is complex. For instance, a decline in market conditions can lead to increased credit defaults, which in turn may strain operational capabilities. Understanding these interconnections allows for a more comprehensive risk management approach.

Practical Applications of Comparative Analysis

Homework: Comparative Risk Analysis Project

Comparative Analysis of Financial Risks

Comparative Risk Analysis Quiz

Financial risk terminology encompasses a wide range of terms that are crucial for effective communication in risk management. Familiarity with these terms allows professionals to articulate risks, strategies, and compliance requirements clearly.

Market Risk: The risk of losses in financial markets due to factors like interest rate changes or economic shifts.

Credit Risk: The risk of default on a debt that may arise from a borrower failing to make required payments.

Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems.

Regulatory Risk: The risk of changes in laws and regulations that may affect the financial institution.

Understanding these terms is essential for effective risk management and communication within financial institutions.

The terminology used in risk management discussions can significantly influence decision-making processes. Misunderstandings or misuse of terms can lead to poor risk assessments and ineffective strategies. For instance, not distinguishing between market risk and credit risk can result in inappropriate risk mitigation measures.

🔍 **Tip:** Always clarify terms during discussions to ensure everyone is on the same page. Miscommunication can lead to costly mistakes.

Creating a glossary tailored to your institution's needs can enhance communication and training. It serves as a reference for both new and experienced staff, ensuring that everyone understands the critical terms related to risk management.

Compile a list of essential financial risk terms relevant to your institution.

Define each term clearly, providing examples where applicable.

Organize the glossary alphabetically or thematically for easy reference.

Distribute the glossary among team members and encourage feedback.

Practical Exercises to Enhance Vocabulary

To reinforce your understanding of financial risk terminology, engage in the following practical exercises:

Create flashcards for each term, including its definition and an example.

Engage in role-playing scenarios where you must use these terms in context.

Participate in group discussions where you apply the terminology to real-world scenarios.

These exercises will not only enhance your vocabulary but also help you apply these terms in practical situations.

"The limits of my language mean the limits of my world." - Ludwig Wittgenstein

Misunderstanding or misapplying financial terminology can lead to significant issues in risk management. Here are some common pitfalls to avoid:

Using jargon without ensuring that all team members understand it.

Failing to update the glossary as new terms emerge in the industry.

Assuming that everyone has the same level of understanding of terms.

By being aware of these pitfalls, you can foster a more effective communication environment within your institution.

Mastering financial risk terminology is a vital step in enhancing your risk management capabilities. By creating a tailored glossary, you not only improve your own understanding but also contribute to a culture of clarity and precision within your institution. In the next lesson, we will explore risk assessment techniques that utilize this terminology effectively.

Glossary Development Homework

Glossary of Financial Risk Terminology

Financial Risk Terminology Quiz

In the world of finance, understanding the consequences of risk mismanagement is crucial. Case studies serve as powerful learning tools that allow us to analyze real-world scenarios where institutions faced significant challenges due to inadequate risk management practices.

One of the most illustrative examples is the 2008 financial crisis, which was primarily driven by failures in risk management across various institutions. For instance, Lehman Brothers' collapse highlighted the dangers of excessive leverage and poor risk assessment models. By dissecting this case, we can identify key failures, such as inadequate understanding of market risks and a lack of robust stress testing.

🔍 **Key Insight:** The failure to adequately assess and manage risk can lead to catastrophic outcomes, not just for the institution involved but for the entire financial system.

In contrast, examining institutions that successfully navigated financial crises can provide valuable insights. For example, JPMorgan Chase's proactive approach during the 2008 crisis included rigorous risk assessments and swift adjustments to their portfolios. This case illustrates how effective risk management practices can enhance resilience and adaptability.

Conduct thorough risk assessments regularly.

Implement dynamic risk management strategies that can adapt to changing market conditions.

Foster a culture of risk awareness throughout the organization.

Importance of Learning from Past Mistakes

The financial sector is in a constant state of evolution, and the risks it faces are becoming increasingly complex. By analyzing past mistakes, finance professionals can develop a more nuanced understanding of how to implement effective risk management strategies.

"The only real mistake is the one from which we learn nothing." – Henry Ford

In this context, it is essential to create a feedback loop within institutions that allows for continual learning and adaptation based on past experiences.

Practical Exercise: Analyzing Case Studies

To reinforce your understanding, engage in a practical exercise where you will analyze a specific case study of a financial institution that faced significant risks. Here’s how to approach it:

Select a financial institution that has faced a significant financial risk or crisis.

Research the background of the case, focusing on the risk management practices in place.

Identify the key failures and successes in their risk management approach.

Prepare a report summarizing your findings and recommendations for improvement.

After completing your analysis, engage with your peers to discuss your findings. This collaborative approach will not only enhance your learning but also provide diverse perspectives on risk management.

By learning from the successes and failures of others, you can develop a more robust risk management framework that is tailored to the needs of your financial institution.

Homework: Case Study Analysis

Case Studies: Learning from Financial Institutions

Evaluating Risk Management Lessons

Dive deep into the world of financial risks, exploring market, credit, and operational risks. This module will equip you with the knowledge to identify and analyze these risks, laying the groundwork for effective management strategies.

Decoding Financial Risks: Types and Impacts

Qualitative and quantitative assessment techniques serve distinct purposes in risk management. While qualitative techniques rely on subjective judgment and descriptive data, quantitative techniques utilize numerical data and statistical methods. Both are essential for a comprehensive risk assessment framework.

Qualitative assessment techniques involve subjective evaluations based on expert judgment, interviews, and surveys. They are particularly useful for understanding complex scenarios where numerical data may be scarce or insufficient. Examples include risk interviews and focus groups.

Quantitative assessment techniques, on the other hand, rely on numerical data and statistical analysis. These techniques provide measurable insights that can be analyzed to reveal patterns and trends. Common methods include Value at Risk (VaR), stress testing, and scenario analysis.

💡 Tip: Use qualitative techniques to gain insights into stakeholder perceptions, while quantitative techniques can help you validate these insights with data-driven evidence.

Qualitative techniques are advantageous for capturing nuanced insights and understanding contextual factors. However, they can be subjective and may lack reliability without rigorous validation.

Quantitative techniques offer precision and the ability to analyze large datasets, but they can oversimplify complex risks and may not account for contextual factors that qualitative assessments capture.

Practical Applications in Risk Assessment Frameworks

Consider a financial institution assessing credit risk. They might use qualitative techniques to gather insights from relationship managers about borrower behavior, while employing quantitative techniques to analyze historical default rates and credit scores. This integrated approach allows for a more robust assessment of credit risk.

Conduct a mini-assessment of a hypothetical financial risk using both qualitative and quantitative methods. Start by interviewing a peer to gather qualitative insights, then analyze a dataset related to the same risk to draw quantitative conclusions. Document your findings and reflect on how both techniques contributed to your understanding of the risk.

Homework: Applying Assessment Techniques

Qualitative vs. Quantitative Assessment Techniques

Assessing Your Understanding of Assessment Techniques

Simulation methodologies are essential tools in risk assessment, allowing professionals to model potential outcomes based on varying inputs. By simulating different financial scenarios, you can analyze how various factors affect risk levels and decision-making.

Key methodologies include Monte Carlo simulations, stress testing, and scenario analysis. Each of these techniques provides a distinct approach to understanding risks and their implications.

💡 **Tip:** Always ensure your simulation parameters reflect realistic market conditions to obtain valid results.

Collaboration is a cornerstone of effective risk assessment. By working with peers, you can gather diverse perspectives and insights, leading to more comprehensive analyses.

In this section, you will engage in group simulations where each member will take on different roles—such as risk analyst, compliance officer, and financial manager—to assess risks from various angles.

Form groups of 3-5 participants to conduct a collaborative risk assessment simulation.

Real-Time Analysis of Simulated Risk Scenarios

Once your simulations are underway, real-time analysis becomes crucial. This involves monitoring the outcomes of your simulations and making adjustments based on observed results.

Utilize dashboards and analytical tools to visualize risk levels during simulations. This will help you identify trends and make informed decisions quickly.

Hands-On Exercise: Conducting a Risk Assessment Simulation

Now, it's time to put your skills to the test. Conduct a risk assessment simulation using a hypothetical scenario. Follow these steps:

Select a financial scenario to simulate (e.g., market downturn, credit default).

Define the parameters and variables for your simulation.

Run the simulation and document the outcomes.

Analyze the results, noting any unexpected trends or insights.

Conducting Risk Assessment Simulations

Master various risk assessment techniques essential for quantifying and qualifying risks. This module combines theoretical knowledge with practical exercises to enhance your analytical skills.

Strong Knowledge of Financial Principles

Experience in Finance or Investment Roles

Familiarity with Basic Risk Concepts

Understanding of Regulatory Frameworks in Finance

Types of Financial Risks

Why This Matters:

Recommended Resource:

Risk Assessment Techniques

Why This Matters:

Recommended Resource:

Regulatory Compliance in Finance

Why This Matters:

Recommended Resource:

Preparation Tips

What to Expect

Words of Encouragement