Managing Liquidity Risk

The Subprime Crisis of 2008 has often been described as a “liquidity crisis”. Since 2008, liquidity risk has become a major area of focus in risk management. The challenge for banks is how to manage their liquidity and protect themselves against liquidity risk. The purpose of this course is to provide participants with a good understanding of liquidity risk and how to manage it.

Course content

  • Introduction
  • Asset liquidity risk:
    Collateral management
  • Funding liquidity risk
  • Liquidity risk measurement:
    Ratio approach
    Monitoring tools
    Stress testing
  • Liquidity gaps
  • Contingency funding plan
  • Fund transfer pricing (FTP)
  • Future trends

Target audience

Risk managers and other financial service professionals with at least 1 year experience in financial services who want to understand liquidity risk

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