Risk Management (advanced) - Asset and Liability Management
Every company must manage the delicate balance between its assets and its liabilities. For banks, asset and liability management is crucial for managing risk and ensuring an optimal level of liquidity. This course provides participants with a good understanding of how banks use asset and liability management (ALM) to reduce and manage a variety of risks.
- Understand the components of ALM
- Appreciate the importance of the assets and liabilities committee (ALCO) and other organisational aspects of ALM
- Distinguish between strategic ALM and operational ALM
- Evaluate interest rate risk in the context of ALM
- Conduct different types of analyses, such as a gap analysis, a duration and basis point value (BPV) analysis, liquidity gap analysis
- Analyse the impact of foreign exchange risk
- Understand non-maturing liabilities
- Describe how to implement an ALM system
- Apply value at risk (VaR) calculations in the context of ALM
- Understand fund transfer pricing systems
The knowledge acquired from this course can be validated by means of a written examination. 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 training course has been designed for anyone who already has good knowledge of risk management and who wishes to acquire a solid understanding of ALM.