Certificate in Market and Liquidity Risk Management

Liquidity risk was cited as one of the main drivers of the 2008 credit crisis. Since the financial crisis, regulators have identified significant pitfalls in how financial institutions managed risk. As a result, new regulations have been introduced which require Banks to limit leverage, maintain increased levels of liquidity through the Liquidity Coverage Ratio and Net Stable Funding Ratio.

Financial crisis consequences forced players in the financial Services industry continually to address the formulation, implementation, review and subsequent revision (if needed) of liquidity management strategies to ensure that sensitivity to interest rate changes and currency fluctuations are within acceptable risk tolerance levels.

Within this course the participants will be able to comprehend how the Yield, the Liquidity as a concept and the Risk related to that interrelate, comply with reporting requirements of the liquidity from different business lines, learn how to risk adjust these cash flows and how to optimise the capital structure within the organisation but in a regulatory compliant manner.

This course will give an overview of the challenges of managing liquidity risk as well as recommendations to address this important risk. All these topics will be covered from practical and industry relevant aspects.

5 Key Takeaways

• Review liquidity management lessons learned from the crisis
• Assess liquidity risk management, asset and liability management and funding strategy in a structured manner
• Forecast, control and stress-test liquidity sources and uses (on and off balance sheet)
• Build a contingency funding plan to address stress cash outflows
• Evaluate changing regulations and supervisory guidance on the management of bank liquidity

Learning Outcomes

• Understand the complex structure of the Basel II and Basel III Accords, as well as the Liquidity Coverage Ratio and Net Stable Funding Ratio.
• Review the definitions of Liquidity Risk including the alternative methodologies which can be used to calculate them.
• Explore how liquidity risk is captured by the Liquidity Coverage Ratio and Net Stable Funding Ratio.

Who Should Attend?

All Bank branch managers, supervisors, and employees working in treasury, back office, middle office, audit, retail, credit, corporate risk management and compliance departments.

Liquidity Risk Management Specialist Certification

The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional associations with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria.

The IABFM is acredited by the American National Standards Institute (ANSI), which is the International Standards setting authority