Understand financial risks from banking: an introduction to Asset & Liability Management

Understand Financial Risk from Banking will grow your understanding of the business model of banks to support your career in the banking industry.

Course completion can also benefit professionals that work in other financial institutions, such as pension funds, insurance companies and investment firms.

Since risk management is also the essential expertise of the Asset & Liability committee (ALCO), this course also is an introduction to Asset & Liability Management (ALM).

What you can expect

Banks are risk factories making profits by taking and managing risk.
After an introductions to the possible bank core activities, this course focuses how banks manage the main financial risks: liquidity risk, interest rate risk and credit risk.

Topic basket examples:

• An overview of bank core activities and risk exposures
• Interest rate risk:
  - How to calculate net interest income
  - The possible Interest rate risk transformation mismatches: neutral, net asset & net liability mismatch
  - To interpreted a yield curve (forward rates)
• Liquidity Risk:
  - How to mitigate liquidity risk using buffers, repurchase agreements, securities and money market programs
  - Supervisor intervention to money market crisis
  - Mitigation of liquidity risk by minimum supervisor standards:
   Liquidity Coverage Ratio (LCR) anD Net Stable Funding      Ratio (NSFR)
• Credit Risk:

- How to calculate the expected loss from debtor risk (credit spreads)
- How to mitigate credit risk, such as netting and collateral

• The organization of risk management
• The buffers to absorp losses (capital; provisions)
• 43 multiple choice questions to test your knowledge

You don’t need financial knowledge or experience: everybody can understand finance, it’s not rocket science.