Risk Management - Liquidity Risk for Banks

Since the Financial Crisis of 2008, which has often been described as a “liquidity crisis”, liquidity risk has become a major area of focus in risk management. Many of the changes in Basel III target liquidity risk and how banks can protect themselves against it. The purpose of this course is to provide participants with a good understanding of liquidity risk and how to manage it.

• Understand the various forms of liquidity risk and their sources
• Analyse funding and asset liquidity risk
• Judge the impact of governance and organisational structure on liquidity risk
• Apply the most common methods for measuring liquidity risk
• Develop a contingency funding plan
• Evaluate the regulatory environment for liquidity risk in banks

• Introduction
• Asset liquidity risk
• • Collateral management
  • Tightness
  • Depth
  • Resilience
  • Immediacy
• Funding liquidity risk
• • Diversification
  • Cliff effects
  • Deposits
• Intraday Liquidity Risk Management
• Liquidity Risk measurement
• • LVaR
  • Balance sheet analysis
  • Ratio approach
  • Monitoring tools
  • Stress testing
  • Liquidity gaps
• Contingency funding plan
• Fund Transfer Pricing (FTP) Systems
• Future trends 

This training course has been designed for a broad audience, i.e. for anyone wishing to acquire fundamental knowledge in Risk Management.

For this training course, an optional exam is available. In case of interest, candidates can choose a date from the list of proposed examination sessions. Registration for the exam must be made at least five days before the chosen exam date. The exam is subject to a registration fee.

The examination consists of true/false and multiple-choice questions. To pass the exam, a candidate must achieve a score of at least 50% of the total points on the exam.

This module is part of the Risk Management Certification. To obtain their certificate, candidates must complete 12 days of training in Risk Management and pass the exam for each course. 

More details here: Professional Risk Management Certification