This interactive workshop course is apt for participants already engaged in or in support of liquidity risk management, either within a given enterprise or from the outside. It builds an invaluable case for addressing liquidity risk, something which was taken “for granted” especially in the financial marketplace for a long time until the arrival of the global financial crisis. Taking into account increasing business complexities, the advancement of technologies in fund flow measurement/payment processes, this is a timely workshop to keep abreast of latest market happenings and risk management techniques in addressing liquidity riskOverview
Overview
Liquidity Risk was taken as a non-event prior the crisis but since then, assumed front seat in the risk management space. The UK Turner Review (Mar 2009) sets the tone for the need to manage liquidity risk in the banking world. The crisis also brings forth the importance of liquidity (both market and cash flow) for the non financial institution. This one-day orientation workshop initiates and fortifies the finance and audit professional, from both financial and non financial institutions, in the fundamental issues and challenges in liquidity risk management. Set against the backdrop of the global financial crisis and continual liquidity squeezes/traps and taking into account the evolving demands from Basel III and other regulatory challenges and industry best practices, the interactive session serves a timely catch-up on the subject that plagues every corporation and enables the participant to pick up useful know-how in cash flow and market liquidity management. Intended to be edu-training, it addresses the liquidity risk management practice with less quan-toxication, more qualitative rationalization and uses a palatable lay and case-based approach to an otherwise heavily technical subject
Upon completion of course, participants will be able to:
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have a proper understanding of the different forms of liquidity risks
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appreciate the impact liquidity risks have on financial and non financial corporations
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develop sound principles in measuring and managing liquidity risk drawing guidance from, interalia, BIS, FSA and MAS
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recognize the challenges posed in the process of managing liquidity risks
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draw lessons from the Global Financial Crisis (GFC) including the Asset Backed Commercial Paper (ABCP) shutdown and the “buck-breaking” episode in the US funds world
Who should attend
All individuals who play a role in managing liquidity risk. These include
- those serving on the board of directors
- senior executive roles such as CEOs, CFOs, controllers, treasury managers and chief audit executives
- other corporate executives and officers supporting the liquidity risk management machinery in the organization
- technological and other external vendors supporting the liquidity risk management function
Methodology
Non-theoretical methodology which includes interactive discussions, case studies, interactive games and
assignments to understand the concepts and their applicability.
Trainer
All our trainers are carefully chosen by us and possess a rich and vast experience in the financial sector.
This course will be conducted by a renowned consultant having more than 35 years of experience in
financial markets and training. Until recently, he served for many years as the Regional Director
Singapore chapter and Global Board of the Professional Risk Managers International Association.
What is Risk Management?
Why Risk Management?
When is Risk Management required?
Where is Risk Management conducted?
Who are involved in Risk Management?
Exploring the Liquidity Word Cloud –
what liquidity risk management entails
Addressing the different forms of
Liquidity Risk
Why Liquidity = Lifeblood?
What drives Liquidity Risk?
What managing liquidity is NOT?
What’s in Corporate Liquidity Management?
The Treasury and Corporate Liquidity
The new Liquidity Landscape – challenges
and opportunities
Digital Transformation and Liquidity Risk
Management – Virtual Ledgers and
Artificial Intelligence
Forms of Liquidity and the optimal level
of Cash
Corporate Liquidity and Banks – forming
an interacted eco-system
Reflections from the GFC – whatever happened at Northern Rock, Lehman, Merrill, Bear Stearns, securitization, CP drought.
At Ground Zero of the GFC – the Silent Mover called Repo
Lessons for all – banks, supervisors and corporate
The Liquidity framework under Basel
- Bail-Ins and a Look of re-hypothecation
- Liquidity Management – science or art
- Ingredients of a sound Liquidity Risk Management Framework
- The Musts in Funding Risk Management
- The 7 sins – shortcomings in liquidity risk management
- Addressing intra-day liquidity risk management
- Risk appetite, early warning indicators and managing collateral
- From a Pillar to 2 Ratios – Basel instructs on liquidity risk measurement
- the workings of Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)
- Other liquidity risk measures
- How much liquidity is enough?
- Liquidity Adjusted Value at Risk
Beyond Business As Usual (BAU)
Addressing a bank’s worse nightmare
The importance and elements in Liquidity
stress testing
Inside the Contingency Funding Plan
