Asset Liability Management (ALM) Masterclass

Workshop Overview

Asset Liability Management (ALM) is defined as the practice of managing the risks that arise from the interdependencies between assets and liabilities of financial institution due to liquidity or changes in interest rates. Banks face several risks such as liquidity risk, interest rate risk, operational risk and credit risk. ALM is a strategic management mechanism to manage liquidity risks and interest rate risks faced by the banks, and other financial institutions. Liquidity is known as an institution’s ability to meet its liabilities either by borrowing or converting assets. Apart from liquidity, a bank may also have a mismatch due to changes in interest rates as banks typically tend to borrow short term (fixed or floating) and lend long term (fixed or floating).

The concept of asset liability management focuses on the timing of cash flows, because company managers need to know when liabilities must be paid. It is also concerned with the availability of assets to pay the liabilities, and when the assets or earnings can be converted into cash. This process can be applied to different categories of assets on the balance sheet.

This two days in-depth course provides an insight on what are the ALM framework, ALM modeling and how to manage interest rates and liquidity risks by showing real case studies. Furthermore, this course will be having group discussion sessions and case studies. Additionally, a case study with role game will be included during the course. This advanced course mainly targeted on professional people within the banks, financial institutions and corporates and is presented in an interactive format with ample time for question and answer sessions and discussions.

Key benefits of attending this workshop

By end of the course, you will be able to:

  • Have a deep and clear UNDERSTANDING on the ALM concepts which imposes distinctive managerial challenges in today’s fast changing financial markets
  • IDENTIFY the signifi cant risk elements acting on the balance sheet and know how to reduced it
  • DEFINE, MEASURE and MANAGE various risks exposure in modern financial institutions
  • DETECT the complex ALM issue within banks and financial institutions
  • APPLY the appropriate hedging methods into ALM practices
  • CONTRIBUTE to the shaping and implementation of an institution’s ALM policy

Who Should Attend?

This course is specifically designed for:

  • CEOs
  • Presidents
  • Chief Financial Officers (CFOs)
  • Market and Credit risk Professionals
  • Bank Directors
  • Risk Managers in Investing and Commercial Banking
  • Asset & Liability Managers
  • Treasury Managers
  • Portfolio Managers
  • Consumer Product Managers
  • Liquidity Managers
  • Quantitative Analysts
  • Risk Controllers
  • Insurers
  • Financial Consultants
  • Investment Officers
  • Controllers and Finance
  • Auditors & Accountants
  • Bank Regulators
  • Investment Professionals
  • Securities Analysts
  • Pension Fund Managers and Trustees

Why You Should Attend?

Do you have an in-depth knowledge about Asset Liability Management (ALM)? Are you aware of the key risk factors that affect ALM practices? Are you having issues in using the appropriate methods in managing your risks?

If you are facing any issues on ALM or often losing track on managing your risks, this is the course designed for you to attend. This two days course will be presenting you an advanced level of learning ALM. It will be first covering ALM regulatory framework, Gap Analysis, Basel III liquidity ratios and IV, other metrics and non metrics.

On the second day, it will be explaining on ALM modeling, managing interest risk and liquidity risk, ALM risk governance and sensitivity and stress-testing. Group discussions and case studies will be performed each day. A case study with a role game will be performed.