The treasury function manages a firm's liquidity, funding and interest rate risk, and often its foreign exchange and capital risk as well. This 60-minute treasury risk management webinar focuses on the bank treasury, though nonbank corporations face many of the same risks and processes.

You'll see how liquidity risk comes from a firm's ability to create assets and fund them, how interest rate (interest maturity) risk arises from mismatched asset and liability maturities, and when FX exposure appears. The session covers the nature of funding, liquidity and gap analysis, derivatives, stress testing, hedging, transfer pricing, capital ratios and the ALCO's oversight role.

It includes model reports treasury uses to manage liquidity and interest maturity risk.

WHY SHOULD YOU ATTEND?

Treasury is one of the most important and demanding areas of a bank or corporation, and senior management needs to understand the balance sheet, its risks and how they are managed. This session explains each area of treasury risk, how to think about it, and the tools and management information used to control it.

It suits treasury managers, senior executives and board members with oversight duties, treasury risk, compliance and audit staff, regulators and university educators.

AREA COVERED

Managing the balance sheet

• Funding
• Asset/liability management structure
• Loan pricing
• Transfer pricing
• Foreign exchange exposures

Nature of funding

• Composition
• Dependency
• Ratio evaluation

Non-wholesale funds relative to wholesale funds

• Makeup
• Characteristics
• Stability

Liquidity risk management

• Key elements to consider
• Wholesale funds dependency
• Market share evaluation
• Fund provider analysis
• Maturity structure
• Investment liquidity

Interest maturity risk management

• Gap analysis
• Asset/liability pricing
• Asset/liability maturity mapping
• Use of derivatives
• Stress testing
• Guidelines

Foreign exchange risk management

• Identification and evaluation
• Hedging analysis

Transfer pricing

• Conceptual framework
• Methodology

Capital management

• Requirements and key ratios

Asset/Liability Management Committee

• Oversight responsibilities
• Interaction with the treasury function

LEARNING OBJECTIVES

• Explain the treasury function's role in managing the balance sheet
• Evaluate funding composition, dependency and the stability of wholesale and non-wholesale funds
• Assess liquidity risk using maturity structure, fund provider and investment liquidity analysis
• Measure interest maturity risk with gap analysis, maturity mapping and stress testing, and the role of derivatives
• Identify FX exposures and analyze hedging options
• Apply transfer pricing and capital management concepts and describe ALCO oversight

WHO WILL BENEFIT?

• Treasury Management
• Senior and executive corporate management oversight
• Corporate Board members oversight
• Risk management within the Treasury function
• Compliance management within the Treasury function
• Auditing of a Treasury Management function
• Regulatory oversight of the Treasury function
• Educational programs at the university level