Effective Liquidiy Risk Management CourseThis 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.
- have a proper understanding of the different forms of liquidity risks
- appreciate the impact liquidity risks have on financial and non financial corporations
- develop sound principles in measuring and managing liquidity risk drawing guidance from, interalia, BIS, FSA and MAS
- recognize the challenges posed in the process of managing liquidity risks
- 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
- 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
MethodologyNon-theoretical methodology which includes interactive discussions, case studies, interactive games and assignments to understand the concepts and their applicability.
TrainerAll 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.
Module – 1: The 5 Ws of Risk Management
- 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?
Module – 2: Corporate Liquidity Management and the inter-connectivity with those in financial institutions and Digital Disruption
- 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
Module – 3: Liquidity – the GFC Awakening
- 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
Module –4: Sound Practices of Liquidity Risk Management – Guidance from the regulators and industry bodies
- 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
Module – 5: Liquidity Metrics – Numbers that tell and don’t-tell
- 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
Module – 6: Contingency Funding Plan and Challenges in Liquidity Stress Testing
- Beyond Business As Usual (BAU)
- Addressing a bank’s worse nightmare
- The importance and elements in Liquidity stress testing
- Inside the Contingency Funding Plan
Effective Liquidity FAQ
Optimize liquidity risks with online risk management courses.
Liquidity risk, a key in risk management, entails financial obligations.
Key elements of liquidity risk management include cash reserves and risk courses.
Good liquidity risk management means maintaining adequate cash reserves.
Evaluate liquidity risk with stress tests and thorough cash flow analysis.
Analyze liquidity risk by scrutinizing cash flows and market conditions.
Liquidity risk management is vital for financial stability; explore risk training courses.
Identify liquidity risk through rigorous analysis of cash flows and market dynamics.
Financial institutions manage liquidity risk by maintaining prudent cash reserves.
Principles of liquidity management include maintaining cash, monitoring flows, and having contingency plans in risk learning.