OVERVIEW:
Liquidity means being able to get the cash you need when you
need it, but it also means that others must perceive you can
do this so that cash remains available to you. In many
banks, liquidity is taken for granted until some crisis
makes it a focal point for bankers, regulators, and the
public. Too often liquidity plans and policies are put in
place in response to such events with little consideration
of the real questions bankers need to address.
Liquidity risk is the current and prospective risk to
earnings or capital arising from a bank’s inability to meet
its obligations when they come due without incurring
unacceptable losses. Liquidity risk includes the inability
to manage unplanned decreases or changes in funding sources.
Liquidity risk also arises from the failure to recognize or
address changes in market conditions that affect the ability
to liquidate assets quickly and with minimal loss in value.
Liquidity Risk covers a wide range of topics, including
Identifying, defining, quantifying and managing the risk
By the end of this course participants will have a detailed
understanding of the nature of liquidity risk. They will be
able to assess its impact upon the trading and non-trading
operations of financial institutions and will possess
knowledge of the range of activities and actions that are
available to measure, manage and control liquidity risk
within financial institutions.
These topics need to be placed into the context of an
organization framework for the Management of Liquidity Risk.
We provide a range of public scheduled courses on a monthly
basis. We also offer all of our courses on-site world-wide.
On-site courses can significantly reduce your costs and
works well because people won’t need to travel away from the
office and home.
Who Should Attend?
The individuals that will benefit more from this course are
junior to middle management staff within Treasury
departments of financial institutions. Middle office and
back office supervisors and management supporting trading
operations. The course would also be useful for junior and
middle ranking internal audit and compliance officers and
executives
COURSE CONTENT:
Liquidity Risk Management
Types of liquidity risk: funding and transactional
Contingency liquidity
Metrics and measures of liquidity risk
Liquidity gap analysis and the bank's liquidity profile
Expected and unexpected loss analysis in the presence of
illiquidity
