Liquidity and Funding Risk Management

Discover best practice in liquidity and funding risk management and learn how analyse early warning signals of heightened liquidity risk.

Liquidity risk was one of the principal causes of the Global, Eurozone and Asian Financial Crises in 2008, 2011 and 1997 respectively. Banks and regulators have made substantial changes to risk management and regulation, but challenges remain as business models and market conditions evolve.

In this workshop, participants will work on case studies of both liquidity stress and best practice management. Examples are drawn from both mature and emerging markets and address current market conditions as well as earlier crises. The course will equip participants to:

• Distinguish sources of liquidity risk and how they impact different types of financial institution, product and market
• Identify the key liquidity and funding sources and needs of a bank in both on-going and stressed environments
• Use lessons learned from market and idiosyncratic liquidity risk management failures to benchmark best practice
• Recognise the key challenges and potential solutions to intra-day, intra-group and cross currency liquidity management
• Review and anticipate the impact of regulatory change, specifically Basel III LCR and NSFR and derivative clearing and margining rules
• Evaluate liquidity risk management processes and governance in the context of business model and regulatory change