Liquidity & ALM Fundamentals Training Course

This course equips participants with essential knowledge and practical tools in liquidity management and Asset-Liability Management (ALM). It explores the frameworks, techniques, and regulatory requirements for managing liquidity risk, interest rate risk, and balance sheet mismatches. Participants will learn how to strengthen organizational resilience by applying ALM strategies, liquidity planning, and stress testing to ensure financial stability in both normal and crisis conditions.

Target Groups

• Treasury and finance professionals
• Risk management officers
• Bankers and financial services staff
• Corporate finance managers
• Internal auditors and compliance officers
• Consultants in financial risk and treasury
• Students pursuing careers in finance and risk management

Course Objectives

By the end of this course, participants will be able to:

• Understand the fundamentals of liquidity management and ALM.
• Identify sources and risks related to liquidity and funding gaps.
• Apply liquidity measurement techniques such as LCR and NSFR.
• Develop effective ALM strategies to balance risk and return.
• Manage interest rate and currency mismatches in the balance sheet.
• Implement stress testing and scenario analysis for liquidity risk.
• Align liquidity management with regulatory requirements.
• Use ALM to support business growth and capital planning.
• Design governance structures for effective liquidity oversight.
• Apply best practices in liquidity planning and contingency funding.

Course Modules

Module 1: Introduction to Liquidity & ALM

• Definition, scope, and importance
• Relationship between liquidity and solvency

Module 2: Liquidity Risk Management

• Types and sources of liquidity risk
• Tools for monitoring and control

Module 3: Liquidity Measurement Techniques

• Liquidity Coverage Ratio (LCR)
• Net Stable Funding Ratio (NSFR)

Module 4: Asset-Liability Management Fundamentals

• ALM objectives and frameworks
• Role in financial institutions and corporates

Module 5: Interest Rate & Currency Risk in ALM

• Measuring interest rate sensitivity
• Managing FX exposures

Module 6: Balance Sheet Gap Analysis

• Identifying mismatches in assets and liabilities
• Duration and repricing analysis

Module 7: Stress Testing & Scenario Analysis

• Liquidity stress scenarios
• Impact assessment and contingency planning

Module 8: Regulatory & Compliance Requirements

• Basel III liquidity standards
• Central bank and local regulations

Module 9: Governance & ALM Committees

• Role of ALCO (Asset-Liability Committee)
• Governance structures and policies

Module 10: Best Practices & Case Studies

• Lessons from financial crises
• Successful liquidity and ALM frameworks