CPEs: 16
Instructor: Howard Haughton PhD
Level: Intermediate
Tuition: £1,995.00
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NEW Stress Testing Liquidity Risk RM0300

Location: UK EU MENA WAT GCC Time Zones

First Date: May 7 - 8 2024

Duration: 2 days

Programme Director: Dr Howard Haughton PhD Oxon

All Dates & Locations
Venue Details

Experience the highly-interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risk Reward.

All our 2024 Live and Virtual Classroom events feature shared (or discrete) live chat between delegates and the expert, participate in topical surveys, polling questions, group exercises and case studies for a tried -and- true engaging and gratifying learning experience.

Need to bring this course in house or face-to-face? Simply contact us for significant cost savings and dates to best suit your needs.

"Excellent. Never expected the level of the lecturer provided. Well done!"
Risk analyst, Commercial Bank, Caribbean
Agenda Highlights

Session 1: Liquidity Risk and How it Impacts the Region·

Session 2: Regulatory Liquidity Stress Testing Requirements

Session 3: Building a Practical Stress Testing Framework- Governance

Session 4: Understanding the Interest Rate Risk in the Banking Book (IRRBB) Framework

Session 5: Implementation for Contingency Planning and Funding

Session 6: Stress-Testing Scenario Development

Session 7: Liquidity Stress Testing and Balance Sheet Optimisation

Session 8: Embedding Stress Testing and Liquidity Risk into Your Organisation


"Very well presented seminar! Have already recommended this course to others as he presented the material in a clear and accessible way with a pleasant manner and was able to easily keep participants' attention."
Risk Manager, Commercial Bank, Singapore

This course builds a strong foundation in liquidity risk and stress testing by examining its theory, technical approaches and solutions. The sessions will explore stress testing scenarios, liquidity and stress testing practical application, implementation for contingency planning and funding, as well as early warning signals, buffers and balance sheet optimisation.

The content will provide delegates with the best capabilities and depth of knowledge that will allow them to grasp the latest regulatory requirements, fundamental principles, and understand the direction of leading organisations in this field.

"Very interactive. Models and exercises were excellent."
Credit Risk manager, Brunei Investment Authority
Who Should Attend

Designed primarily for those whose roles may include

  • Risk managers
  • Liquidity management staff
  • Teams involved with stress testing
  • Internal auditors

Additional Course Information

What Does It Cover?

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



Learning Objectives

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.

Social Learning & Methods

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.)


NEW Stress Testing Liquidity Risk

Course Fee

Apply 10% discount code RISK10 by December 15, 2023 at check-out

Course Fee (per person):
GBP £1,995.00 (+ UK VAT when applicable)

Number of delegates:

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