LIQUIDITY RISK MANAGEMENT - BASEL III LIQUIDITY CRITERIA

TRAINING OVERVIEW

The aftermath of the 2008 subprime crisis underscored the challenges related to liquidity risk and the perceived inadequacies of existing banking regulations, notably the Basel Accords. In response to these shortcomings, Basel III was introduced as a revamped framework for more effective liquidity risk management.

As a leading training provider, DixonTech offers a specialized course designed to empower delegates with a thorough grasp of Basel III's liquidity requirements and the associated framework for managing liquidity risk. Participants will delve into the intricacies of preparing financial statements and disclosures under BASEL III, with a specific focus on Liquidity standards.

Furthermore, the training program incorporates innovative approaches and practical exercises to enhance participants' comprehension and application of liquidity risk management principles. The course also explores emerging trends and best practices in the field, ensuring that professionals stay abreast of the dynamic landscape of financial regulations and risk management.

TRAINING OBJECTIVES

• 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

UPON COMPLETING THIS TRAINING COURSE, PARTICIPANTS WILL HAVE ACQUIRED THE FOLLOWING SKILLS AND CAPABILITIES:

• 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

TRAINING IS TAILORED TO

• 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

TRAINING METHODOLOGY

As a prominent training provider, DixonTech ensures an effective learning experience through a diverse range of proven adult learning techniques in this course. Our approach prioritizes maximum understanding, comprehension, and retention of the presented information. Participants will engage in interactive case studies drawn from real-world scenarios or their respective companies, fostering practical application. The course promotes dynamic learning through discussions and evaluations of the latest international tools and techniques relevant to the subject. Additionally, role-playing exercises are integrated, providing a hands-on and immersive learning environment for participants to enhance their skills and grasp the intricacies of the course content.

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