Summary
In 2008, the Sublime Crisis served to highlight how poor liquidity management exposed banking partners to higher risks. In order to mitigate risks and save money, the BASEL lll framework was introduced to manage liquidity within financial institutions.
The Basel lll framework employs specific standards, strategies and methods of statement generation in order to reduce liquidity risk and create specific reporting and risk indicators in order to flag issues at the earliest possible opportunity for change.
This course is designed for candidates who are specifically focusing on Basel lll in order to assist in liquidity risk management and loss mitigation. It will help to identify the root cause of issues, will make it easier for employees to flag risks much earlier in the process and allow them to create an effective action plan based on accurate analysis to resolve issues before they grow.
- To understand the different types of financial risk within the market, operation, and credit and where liquidity could be affected.
- To identify the root cause of risk factors and employ mitigation techniques and tools to maintain wealth.
- To develop a key understanding of all factors surrounding Basel lll.
- Recognise steps to move forward with risk management and business continuity.
- To define appropriate auditing strategies for effective reporting and record keeping.
- To create a strategic process map to aim for liquidity risk management success.
- To implement reporting strategies and Basel lll procedures.
- To produce Basel lll standard statements.
This course is designed for anyone who is responsible for maintaining the finances within a company or auditing to identify risks to profits. It would be particularly beneficial for:
- Members of the Board
- Managing Directors
- Business Owners
- Financial Executives
- Internal Auditors
- Compliance Officials
- Risk Assessors
- Accounting Personnel
- Corporate Governance Directors
This course uses a variety of learning techniques and tools to aid maximum understanding and comprehension. The course includes presentations with interactive group discussions to determine the most effective ways of identifying risk.
Participants will have access to real-world scenarios to create plans based on Basel lll techniques and learn about international tools for change and development in the financial world.
Course Content & Outline
- Success vs. financial risk.
- Identifying the different types of risk, including market, credit, and operational, and how they feed into liquidity risk.
- How to discover risk areas in your organisation.
- Measuring risk using accurate reporting metrics.
- How to mitigate different types of risk in your organisation.
- Implementing risk management strategies effectively.
- Sources of liquidity risk and how to stem them.
- Financial statements based on Basel lll.
- Understanding your cash flow against project plans.
- Financial analysis and management.
- How to monitor your financial position effectively.
- Your capital structure.
- Discovering your net worth and value.
- Optimising working capital based on future prospects.
- Working out your optimum reporting strategy to make the most of your funds.
- Days sales outstanding (DSO).
- Days payable outstanding (DPO).
- Days inventory outstanding (DIO).
- Your cash conversion - developing a cycle.
- Existing credit facilities and selecting your best option.
- The differences between Basel ll and Basel lll.
- The requirement for Basel lll.
- Capital components included in Basel lll.
- The effects of Basel lll on your company’s future.
- Basel lll implications for the whole of the financial market.
- The impact of economic capital on the whole of market changes.
- Risk assessments and their weight on financial decision-making.
- Discovering your Liquidity Coverage Ratio (LCR).
- Your structural net and reach.
- Sound liquidity risk principles and management.
- Management of long-term processes and change.
- Training and implementation of new process models.
- Performance management based on effective reporting.
- Common challenges of liquidity risk management.
- Overcoming hurdles when managing risk.
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