Liquidity Risk and How it Impacts the Region

• Liquidity risk main concepts and sources
• Introduction to understanding the expectations of the regulators
• Examining the current regulations beyond the Global Crisis and its impact in Asia

Trends within liquidity management and their impact on the global markets

Regulatory Liquidity Stress Testing Requirements

• Regulatory authorities stress-testing methods and models explained
• Understanding Liquidity Coverage Ratio (LCR) and calculations
• In-depth examining Net Stable Funding Ratio (NSFR) for banks and NSFR calculations examples

The implications of LCR and NSFR- funds transfer pricing, funding mix, liquid assets buffer management and business model choices

Building a Practical Stress Testing Framework- Governance

• Establishing a strong stress testing framework and understanding the principles that underpin the approach
• Implementing and optimising the stress testing processes
• Key components of an effective stress testing programme

Case studies

Understanding the Interest Rate Risk in the Banking Book (IRRBB) Framework

• IRRBB introduction

Regulatory requirements

Implementation for Contingency Planning and Funding

• Stress scenarios
• Planning for the stress scenarios
• Creating the Contingency Funding Plan

Testing the plan

Stress-Testing Scenario Development

• Liquidity stress events – real life examples
• Lessons to be learned
• Develop stress scenarios

Test of the scenarios

Liquidity Stress Testing and Balance Sheet Optimisation

• Liquidity risk pricing and funds transfer Examples of FTP calculation and implementation
• Liquidity/credit facilities, derivatives collateral posting
• Case studies to demonstrate the practical application of liquidity and stress testing processes for financial organisations

Balance sheet management and optimization techniques

Embedding Stress Testing and Liquidity Risk into Your Organisation

• Metrics needed to manage Liquidity Risk
• Understanding roles and responsibilities

How to communicate the stress testing results effectively within the organisation

By the conclusion of this course delegates will have gained a thorough appreciation of:

• The role that liquidity risk plays and how it impacts an organisation
• Key trends within liquidity risk management
• The sound practices that apply to stress testing and their application to liquidity risk
• The issues relating to IRRBB
• The role of contingency funding plans and their relationship to stress testing
• Embedding liquidity risk management into an organisation and balance sheet optimization.

All delegates who complete the course will receive a Certificate in Stress Testing against Liquidity Risk and for those who require a demonstration of competency via an assessment a 20-question and multiple choice answer quiz, remotely invigilated, with 1 resit and results report is available at no additional charge when requested at time of booking.

Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted live face-to-face visual interaction, discrete chat, for polling and quizzes.

(An invitation via email with access link is included for all participants.)