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Liquidity Risk

18 Sep 2017 08:30 - 19 Sep 2017 17:00
Radisson Blu Edwardian Grafton
130 Tottenham Court Road, London W1T 5AY.
Training & Workshops, Compliance, Risk, Regulation
Audit, Tax & Accountancy, Securities & Investment, Banking, Clearing Houses, Outsourcing, Energy Market Participants, Consumer Credit, Gaming, General Insurance, Investor Relations, Legal, Life Assurance, Mortgage & Home Finance, Pensions, Wealth Management

10% discount. Quote IEOIFF to claim (not available on any Distance Learning course)


Liquidity Risk is all pervasive in financial markets, from simple treasury funding risks, to asset and liability (ALM) liquidity through to derivatives pricing and hedging, all are critically dependent on liquidity and its risks. From the bank run on Northern Rock, to the collapse of Lehman, liquidity risk played a key role. The understanding of liquidity and its risks in its various guises is key to anyone with a role in running a financial institution. This course is specifically designed to guide delegates through the identification, measurement and control of liquidity risk.

The course first examines the sources of liquidity risk in typical balance sheets, notably banks and insurance companies, allowing the delegate to fully understand how it arises and how it can manifest itself most brutally in default or bank run. The course then analyses quantitative methods for measuring liquidity risk in difference contexts such as treasury, balance sheet and derivatives valuation and hedging. Quantitative models and adaptations to common approaches such as VaR and expected short fall, are discussed to incorporate Liquidity Risk. Practical management techniques and strategies are also covered, along with the Basel III regulatory requirements in respect of LCR and NSFR. Market oriented examples are given throughout – to give participants insight into practical liquidity risk management techniques in the current environment.

Benefit from being fully competent with:
- The effects of liquidity risk on securities pricing and funding
- The relationship to Funds Transfer Pricing (FTP)
- The impact on derivative pricing and hedging
- The challenges of building a successful framework for liquidity risk management
- The regulatory requirements for liquidity including Basel stress tests
- Effective liquidity stress testing and contingency planning
- The techniques for modelling liquidity risk within a treasury framework
- The impact of liquidity in the failure of LTCM hedge fund
- The role of liquidity risk in the downfall of a major Wall Street firm

15 Hours
IFF Training
KNect House, 30-32 Mortimer St, London, W1W 7RE.

Tel: +44 (0)20 7017 7190
Contact: Wendy Bell