Effective Asset & Liability Management for regulatory compliance
INTRODUCTION
This course teaches you how to effectively manage your ALM function, balance sheet and profitability for your organisation.
Ongoing validation of the asset/liability management (ALM) model and modeling process continues to be more challenging given the complexity of bank balance sheets, the uncertainty of the economy and consumer behavior and the increased reliance on more sophisticated modeling systems used to measure and manage risk. Given the significance accurate risk measurement plays in support of an effective ALCO (asset/liability management committee) decision-making process, and the related regulatory, accounting and compliance implications, managing model risk has never been more important. This course addresses the recent trends in balance-sheet management, the evolution of the tools used to measure and manage risk, regulatory insights and what processes and controls institutions are implementing to ensure that model risk is adequately quantified, understood and managed.
Course Objectives
- Understand the dynamics of your balance sheet and how to use Key Performance Indicators (KPIs)
- Identify the key risk factors acting on your balance sheet and how they can be minimized
- How all forms of financial exposure can be defined, measured, monitored and managed
- Benchmark your current ALM practices and develop an action plan to bring your practices to the highest standard
- Adopt effective cash flow management and Value at Risk (VAR) techniques
- How to manage and hedge interest rate and liquidity exposures