Implementing Basel III Framework to Mitigate Liquidity Risk
What are the Goals?
By the end of this training course, participants will be able to:
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
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 shortcomings 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
Certificate and Accreditation
Nexus Advisory Certificate of Completion for delegates who attend and complete the training course