Introduction
The past market crisis has presented companies with various challenges in the management of interest rate and balance sheet risk. The role of asset and liability management (ALM)in many organizations is evolving rapidly to improve the monitoring and management of these wide arrays of new risk.
Getting the right balance is always the challenge when banks and financial institutions look at the issue of ALM. This highly intensive programmed provides the perfect balance between theory and practice, focusing on all the key methodologies employed within ALM as a discipline. It will provide you with a practical insight into industry standard techniques and topical regulatory issues.
Regulators and rating agencies are focusing more attention to the ALM disciplines in a company as liquidity and solvency still remain the number one focus of their reviews. This two day seminar provides participants with a broad overview of asset/liability management issues: including strategies, tools, and risk metrics utilized by institutions of all sizes and complexity. Current case example will focus on recent developments such as the illiquidity of many traditional markets and the lack of alternative sources of funding.
Knowledge Development Objectives
By attending this intensive practical program, you will:
- Identify strengths and weaknesses in your current asset and liability management process.
- Obtain practical hands on experience of current best practice risk analysis techniques
- Better understand strategic balance sheet management issues such as the impacts of Basel III and international accounting standards requirements on ALM decision making
- Understand the conflicts at the ALCO level in the application of both earnings and valuation methodologies to bank balance sheet management
- Review symmetric and asymmetric hedging techniques and develop effective balance sheet hedging strategies
- Understand the dynamics of your balance sheet and how to use KPIs
- Identify the key risk factors acting on your balance sheet and how they can be minimized
- Adopt effectives cash flow management and value at risk (VAR) techniques
- Up-to-Date techniques strategies
- Regulatory capital rules
Course Content
- Successfully implementing A/LM
- The role of asset and liability management
- Measuring and managing interest rate risk
- Techniques to measure financial risk
- The role of derivatives
- Strategic balance sheet management overview
- Static risk measurement methodologies reviewed
- Symmetric hedging techniques
- Hedging simulation exercise
- Assessing strategic hedge effectiveness
- Asymmetric risk evaluation
- Advanced Methodologies
Who Should Attend
Treasury Officers, Balance Sheet And Capital Managers, Asset And Liability Managers And Analyst, Risk Managers And Portfolio Managers, Treasury Auditors, Financial Controllers, Accountants And Analysts, Compliance Personnel.