Liquidity risk management is an often overlooked and misunderstood aspect of risk management, despite being fundamental to a company’s day-to-day survival. For banks, liquidity risk management is all the more critical, as the bank’s main business lies within asset and liability management, which inevitably links to liquidity risk management. The program will begin by establishing the definitions and practical applications of what we mean by “liquidity.” This includes managing liquidity for survival, liquidity for growth, trading liquidity as well as structural liquidity.

The program will then cover managing balance sheet liquidity, which involves developing the conceptual framework and skill sets needed to identify, measure, control and monitor liquidity risk. As the regulator plays an indispensable role in the functioning of any country’s banking system, we will also review liquidity risk management with specific reference to current regulatory requirements as well as the tools availed by the central bank to manage liquidity in the market.

As liquidity risk management is a highly specialized field, the program will include specific real-life examples to illustrate concepts shared including episodes and case studies gleaned from both local and foreign banks. The session will be interactive, with ample opportunities for participant engagement and discussion.