Asset & Liability Management / Balance Sheet Management
As concepts go, ALM has been in existence for a long time, and matching has been seen as a key facet of balance sheet control. The approach was seen as a part of ‘voluntary’ risk management, well before the road to hell that is regulation was paved with good intentions. ALM was the first scientific approach promulgated to manage the balance sheet holistically, taking into consideration simple mathematical techniques.
The changing regulatory landscape, however, resulted in enormous confusion, and ALM went from a management technique to a regulatory report, and all the practicalities associated with ALM were replaced by complex questions around gap, duration, simulation, and stress testing.
The key objective of this course is to simplify ALM or BSM techniques
- Exposure by ‘choice’ not by ‘chance’.
- Assets and liabilities may be good when viewed in isolation but what is required is a proper match between them
- An integrated approach with a structured framework for ALM
- Examine not only what is on-Balance Sheet and off-balance sheet but also what is behind the balance sheet (quality of risk management infrastructure.
The participant will be well-grounded in ALM techniques, and will be exposure to a good understanding on the mechanics of ALM across all balance sheet asset classes.
The participant will gain insights into:
- The scope and objectives of ALM
- Relevance of ALM
- ALM framework
- Use ALM to meet regulatory/solvency/liquidity requirements
- Control and diversify risk
- Reduce mismatches
- Establish strategic directions
- Add value creation, Risk-adjusted Return on Capital (RAROC) and Capital Allocation
The course is aimed both at the student and the practitioner; it is provided in a structured format with exercises for each topic, and covering events from across the world, covering all crises including the current Covid-inspired shortfall.
Regulators, analysts, risk and banking professionals who need to better understand the balance sheet management dynamics, and who wish to gain background information on cashflow dynamics.
Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from this course.
The course is targeted at an intermediate level and assumes a basic understanding of banking products and services.
HEAD RISK GOVERNANCE
METRO BANK (UK)
With over 30 years of banking experience and career, Suresh Sankaran has been part of some of the world’s most reputed organizations in the financial system, including the World Bank Group, HSBC, ABN-AMRO, KPMG and Fiserv.
Suresh recently joined Metro Bank (UK) as head Risk Governance and prior to that he retired from Kamakura Corporation where he was the Chief Risk Officer. Suresh has extensive knowledge and a broad perspective on different aspects of risk and in his various roles has advised heads of government, wholesale, commercial and investment banks, corporate treasuries, insurers and fund managers. His specialty is liquidity risk, and he is the author of several papers on liquidity-adjusted risk. His work and contributions on liquidity and its impact on market and credit risks have been recognized by industry professionals and peers.
Suresh ran a very successful campaign called “Another One Bites the Dust”, in which he analyzed data from over 40 countries and attempted to predict the next major default crisis, in which he identified the default path of two organizations prior to the actual event in a series of well-documented posts on his blog. Suresh has distinguished himself as an internationally respected speaker on risk-related issues and has provided training workshops to regulators around the world, including with the Bank for International Settlements’ Financial Stability Institute, where he is a featured speaker.
He has given training workshops to most European and Asian regulators, the Federal Reserve, as well as several African governments. He has also served as a lecturer at several prestigious universities, including the London School of Business. He holds a degree in Finance with a specialization in Mathematics and Accounting and is a qualified Chartered Accountant.
Start: Monday, July 18, 2022
July: 18, 20, 25, 27
August: August 1, 3, 8 and 10
End: August 10th
Schedule: 17:00 to 19:30 Hours, Mexico City Time.
Duration: 8 days, 20 Hours.