Liquidity Risk Management & Contingency Funding Training Course: Ensuring Financial Stability

Introduction:

Liquidity, the ability to meet short-term obligations, is crucial for the survival of any financial institution or business. This comprehensive training course on Liquidity Risk Management & Contingency Funding equips participants with the knowledge and practical skills to proactively manage this critical risk. Participants will learn how to identify and assess liquidity risks, develop robust stress testing programs, establish appropriate liquidity buffers, and create effective contingency funding plans. This course empowers individuals to ensure financial stability, navigate liquidity crises, and contribute to a more resilient organization.

Target Audience:

This course is designed for professionals in the financial industry and those whose work involves financial management and planning, including:

• Treasury Professionals
• Finance Managers
• Risk Management Professionals
• Investment Managers
• Bankers
• Anyone seeking to enhance their understanding of liquidity risk

Course Objectives:

Upon completion of this Liquidity Risk Management & Contingency Funding training course, participants will be able to:

• Explain the core principles of liquidity risk management.
• Describe the different types of liquidity risk and their potential impact.
• Identify and assess potential liquidity vulnerabilities.
• Develop and implement a comprehensive liquidity risk management framework.
• Design and conduct effective stress testing programs.
• Establish appropriate liquidity buffers to withstand adverse scenarios.
• Create robust contingency funding plans to address liquidity shortfalls.
• Manage liquidity during crisis situations.
• Contribute to a more financially stable organization.
• Enhance the organization's ability to meet its financial obligations.

DURATION

5 Days

COURSE CONTENT

Module 1: Introduction to Liquidity Risk Management

• Defining liquidity risk and its importance.
• Distinguishing between funding liquidity risk and market liquidity risk.
• The role of liquidity risk management in financial institutions and businesses.
• The consequences of liquidity crises.
• Key principles and best practices in liquidity risk management.

Module 2: Identifying and Assessing Liquidity Risks

• Internal and external factors affecting liquidity.
• Cash flow forecasting and liquidity gap analysis.
• Identifying potential liquidity vulnerabilities.
• Analyzing funding sources and their stability.
• Assessing the liquidity of assets.

Module 3: Liquidity Stress Testing

• Designing and implementing stress testing programs.
• Developing scenarios for various stress events (e.g., market downturns, credit crunches).
• Assessing the impact of stress scenarios on liquidity.
• Reverse stress testing to identify vulnerabilities.
• Using stress testing to inform liquidity management decisions.

Module 4: Establishing Liquidity Buffers

• The purpose and importance of liquidity buffers.
• Types of liquid assets: cash, marketable securities, committed credit lines.
• Determining the appropriate size of liquidity buffers.
• Managing the composition and diversification of liquidity buffers.
• Regulatory requirements for liquidity buffers.

Module 5: Contingency Funding Plans

• Developing contingency funding plans to address liquidity shortfalls.
• Identifying potential funding sources: lines of credit, asset sales, secured borrowing.
• Establishing access to emergency funding mechanisms.
• Testing and updating contingency funding plans.
• Integrating contingency funding plans with crisis management plans.

Module 6: Managing Liquidity During a Crisis

• Activating contingency funding plans.
• Prioritizing payments and managing cash outflows.
• Communicating with stakeholders during a liquidity crisis.
• Working with regulators and other counterparties.
• Managing reputational risk during a liquidity crisis.

Module 7: Liquidity Risk Reporting and Monitoring

• Developing liquidity risk reports for management and regulators.
• Monitoring key liquidity metrics and indicators.
• Using dashboards and other visualization tools to track liquidity.
• Communicating liquidity risk information effectively.
• Regularly reviewing and updating liquidity risk management practices.

Module 8: Funding and Liquidity Management Strategies

• Diversifying funding sources and maturities.
• Managing short-term funding needs.
• Optimizing cash management practices.
• Securing access to stable funding sources.
• Developing strategies to enhance liquidity.

Module 9: Emerging Trends in Liquidity Risk Management

• The impact of technology on liquidity risk management.
• The role of data analytics in liquidity forecasting.
• The evolving regulatory landscape for liquidity.
• The challenges of managing liquidity in a globalized financial system.
• The future of liquidity risk management.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.