Coming Soon

Experience the highly-interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risktech & Advisory Limited.

All our 2022 Virtual Classroom events feature shared (or discrete) live chat between delegates and the expert, participate in topical surveys, polling questions, group exercises, and case studies for a tried-and-true engaging and gratifying learning experience.

Session 1: Liquidity Risk and How it Impacts the Region

Session 2: Regulatory Liquidity Stress Testing Requirements

Session 3: Building a Practical Stress Testing Framework- Governance

Session 4: Understanding the Interest Rate Risk in the Banking  Book (IRRBB) Framework

Session 5: Implementation for Contingency Planning and  Funding

Session 6: Stress-Testing Scenario Development

Session 7: Liquidity Stress Testing and Balance Sheet Optimisation

Session 8: Embedding Stress Testing and Liquidity Risk into Your Organisation

There are two main areas of liquidity risk – asset liquidity and the liquidity that needs to be maintained within a firm. This course considers both of these key areas which have become of increasing importance due to the current economic conditions of low-interest rates and high borrowing.

Liquidity risk within the banking industry has been a key focus of attention for regulators due to the innate issue of a structural liquidity mismatch caused by illiquid loan assets being funded by much shorter term and volatile funding sources. This course considers the application of stress testing processes and procedures to the important area of liquidity risk, identifying potential courses of action and other responses available.

This course is designed for: 

• Risk managers 
• Liquidity management staff 
• Teams involved with stress testing 
• Internal auditors  

Liquidity Risk and How it Impacts the Region 

• Liquidity risk main concepts and sources 
• Introduction to understanding the expectations of the regulators 
• Examining the current regulations beyond the Global Crisis and its impact in Asia 
• Trends within liquidity management and their impact on the global markets 

Regulatory Liquidity Stress Testing Requirements 

• Regulatory authorities stress-testing methods and models explained 
• Understanding Liquidity Coverage Ratio (LCR) and calculations 
• In-depth examining Net Stable Funding Ratio (NSFR) for banks and NSFR calculations examples 
• The implications of LCR and NSFR- funds transfer pricing, funding mix, liquid assets buffer management, and business model choices 

Building a Practical Stress Testing Framework- Governance 

• Establishing a strong stress testing framework and understanding the principles that underpin the approach 
• Implementing and optimising the stress testing processes 
• Key components of an effective stress testing programme 
• Case studies 

Understanding the Interest Rate Risk in the Banking Book (IRRBB) Framework 

• IRRBB introduction 
• Regulatory requirements 

Implementation for Contingency Planning and Funding 

• Stress scenarios 
• Planning for the stress scenarios 
• Creating the Contingency Funding Plan 
• Testing the plan 

Stress-Testing Scenario Development 

• Liquidity stress events – real-life examples 
• Lessons to be learned 
• Develop stress scenarios 
• Test of the scenarios 

Liquidity Stress Testing and Balance Sheet Optimisation 

• Liquidity risk pricing and funds transfer pricing. Examples of FTP calculation and implementation 
• Liquidity/credit facilities, derivatives collateral posting 
• Case studies to demonstrate the practical application of liquidity and stress testing processes for financial organisations 
• Balance sheet management and optimization techniques 

Embedding Stress Testing and Liquidity Risk into Your Organisation 

• Metrics needed to manage Liquidity Risk 
• Understanding roles and responsibilities 
• How to communicate the stress testing results effectively within the organisation 

By the conclusion of this course delegates will have gained a thorough appreciation of:

• The role that liquidity risk plays and how it impacts an organisation
• Key trends within liquidity risk management
• The sound practices that apply to stress testing and their application to liquidity risk
• The issues relating to IRRBB
• The role of contingency funding plans and their relationship to stress testing
• Embedding liquidity risk management into an organisation and balance sheet optimization.

Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted Cisco WebEx to optimize live face-to-face visual interaction, discrete chat, for polling and quizzes. (An invitation via email with access link is included for all participants.)