The subprime crisis of 2008 is often associated with the issue of liquidity risk and the how a series of banking regulations (Basel Accords) have failed to ensure that financial institutions mitigate liquidity risk. Basel III came as a response to implement a new liquidity risk management framework.
This Coventry Academy training course is intended to enable the delegates to understand the liquidity requirements of Basel III and the framework liquidity risk management. Delegates will be provided an overview of the most important requirements for preparing financial statements and disclosures under BASEL III, with specific insight on Liquidity standards
This Coventry Academy training course will feature:
Understanding Basel III standards regarding liquidity measures
liquidity risk measurement tools and techniques
Developing liquidity management Strategies
Implementing Basel III standards
Producing liquidity indicators and reporting statements
What are the goals?
By the end of this training course, participants will be able to:
Explain the key differences among Financial Risks: Market, Credit, Liquidity and Operational
Identify the root and cause analysis of Liquidity risk
Comprehend the standards of Basel III relative to liquidity Risk
Recognize the necessary steps toward Risk Management
Set clear steps towards Liquidity Risk Management implementation
Adopt the Basel III requirements, including reporting policies
Who is this training course for?
This Coventry Academy training course is suitable to a wide range of professionals but will greatly benefit:
Board level members who wish to develop their understanding of Basel III
Auditing Professionals working with public sector organizations
Corporate governance directors
Internal auditors
Corporate compliance officials
Professionals seeking to develop their understanding of Liquidity Risk Management
Finance and accounting personnel
How will this training course be presented?
This Coventry Academy training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes interactive case studies from the real world/delegates’ company, discussion and evaluation of the latest international tools & techniques and doing role plays.
Course Outline
Day One: Introduction to Risk Management
Defining business versus Financial Risk
Types of Financial Risk: Market, Credit, Liquidity and Operational Risk
Identifying Risk
Measuring Risk
Mitigating Risk
Implementation and control
Day Two: Analysis of Liquidity Risk
Sources of Liquidity Risk
Financial Statements versus Cash Position
Measuring Liquidity Risk through Financial Analysis
Cash Flow Forecasting
Capital Structure
Day Three: Liquidity Risk Management
Forecasting Cash Flow
Monitoring and Optimizing Net Working Capital
Days Sales Outstanding (DSO)
Days Payable Outstanding (DPO)
Days Inventory Outstanding (DIO)
Cash Conversion Cycle (CCC)
Managing Existing Credit Facilities
Day Four: Basel III Framework
Understand the shortcoming of Basel II
Define Basel III Framework and origins
Discuss new components of capital in Basel III
Evaluate potential effect of Basel III on banks and financial Institutions
Define economic capital: understand the potential impact
Risk Weighted Assessment: optimization strategies
Day Five: Liquidity Risk Management Through Basel III
The Liquidity Coverage Ratio (LCR)
The longer-term, structural Net
Principles for Sound Liquidity Risk
Management and Supervision
Supervisory monitoring
IT challenges of Basel III & Case studies
The certificate
Coventry Academy Certificate of Attendance will be provided to delegates who attend and complete the course