ALM - Asset Liability Management
In-house Programme
To effectively manage your balance sheet, you need to be able to manage your financial exposure due to currency, interest rate and liquidity risks. This practical 2 day course is designed to prepare participants to analyse all those risks and set up and manage effective ALM function.
By the end of this workshop, you will be able to:
- Implement an effective asset and liability management (ALM) policy
- Manage the ALM function
- Understand the analytical framework of interest rate risk management
- Confidently apply ALM in derivative products
- Understand the principles of Value at Risk (VaR), the key concepts and their application
- Understand important regulatory developments relevant to ALM
Run by a former City banker this interactive programme includes many case studies and exercises. Delegates are required to bring calculators.
Who Should Attend
- Treasury professionals
- Investment professionals
- Balance sheet and capital managers
- Asset and liability managers and analysts
- Risk managers and portfolio managers
- Treasury middle office and operations personnel
- Liquidity funding managers
- Treasury auditors
- Financial controllers, accountants and analysts
- Investment bankers
- Regulatory and compliance personnel
Teaching Method
This is a very interactive course which incorporates workshop and case studies.
Tutor will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect. You will receive comprehensive course notes and materials for future reference.
In order to help us establish your individual and business concerns, you will be asked to fill pre-course questionnaire.
Because of the nature of the course the number of places is limited and will be filled on first come, first accepted basis. We advise to book in advance in order to avoid disappointment.
ALM - Asset Liability Management - A 2 Day Programme
Part I - Foundations of Asset and Liability Management
Setting asset and liability (ALM) policy and procedure
- ALM definition
- ALM process and management recognition
- Asset and Liability Committee (ALCO)
Contemporary Asset and Liability Management Context
- Financial markets volatility
- Financial instruments: many and varied
- The regulatory environment
ALM risk management
- Interest rate risk management
- Foreign exchange risk management
- Liquidity risk management
- Credit risk management
- Trading/operational risks
- Techniques of Interest Rate Risk Management
Interest Rate Analysis Techniques
- Gap management
- Free funds
- Variance analysis
- Duration and convexity
- Matching
Financial derivatives: their role in interest rate risk management
- Financial futures
- Forward rate agreements (FRAs)
- Options
- Swaps
Interest Rate Risk Strategies
- Active management
- Passive management
- Rate anticipation
Part II - Capital Allocation and Performance Measurement
Liquidity Management
- Liquidity management models
- Liquidity and volatility
Integrating ALM and strategy
- Role of derivatives
- Portfolio rebalancing
- Reducing portfolio riskiness
Transfer Pricing and Performance Measurement
- Transfer pricing as a bank management tool
- ALM implications
Value At Risk (VaR)
- Rationale
- Application
- Credit Metrics
Capital Allocation
- Risk-based capital standards
- Risk Adjusted Return on Capital (RAROC)
- Product and pricing implications
Our trainer is an investment and private banker with over 30 years experience in the UK corporate and private banking sector. He qualified as an associate of the Chartered Institute of Bankers in 1981 finishing as the top candidate for the year with distinctions and winning the Whitehead Prize for Monetary Theory. Mark has qualifications from Ecole Superieur des Affaires and the Chartered Institute of Securities as well as Investment for the Islamic Finance Qualification (IFQ).
He has been training for over 10 years and has lectured extensively throughout many parts of the world on a range on banking topics. He is a specialist in investment banking, Islamic finance, corporate governance and trade finance.
IN-HOUSE TRAINING
If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 993 8597
