Asset Liability Management



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e-learning and reference solutions for the global finance professional Asset Liability Management A comprehensive e-learning product covering Global Best Practices, Strategic, Operational and Analytical aspects After completing this course, you will be able to: Use ALM to meet regulatory/solvency/liquidity requirements Control and diversify risk Reduce mismatches Establish strategic directions Add value creation, Risk-adjusted Return on Capital (RAROC) and Capital Allocation PO Box 910207, San Diego, CA 92191, U.S.A. Ph.: +1-858-558-8118, information@kesdee.com Fax: +1-858-558-8448, email:

Course Level & Number of Courses Intermediate & Advanced Level Instructional Method Dynamic, Interactive e-learning Recommended Background Familiarity with basic financial concepts Target Audience Overview Volatile global markets, proliferation of new financial products and changing regulatory environments have made Asset Liability Management (ALM) a critical function for banks and financial institutions today. It is therefore becoming increasingly important to define, measure, monitor and manage an institution's exposure to Foreign Exchange, Interest Rate and Liquidity Risks on a coordinated and consistent basis. Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from KESDEE s innovative solutions. Supervisory Agencies Central Banks Financial Institutions Commercial Banks Investment Banks Housing Societies/Thrifts Mutual Funds Brokerage Houses Stock Exchanges Derivatives Exchanges Insurance Companies Multinational Corporations Accountancy Firms Consultancy Firms Law Firms Rating Agencies Multi-lateral Financial Institutions Others The themes of this product are: Exposure by 'Choice' not by 'Chance' Assets and Liabilities may be good when viewed in isolation but what is required is a proper match between them An integrated approach with our proprietary 9-Part Framework for ALM Examine not only what is On-Balance Sheet and Off-Balance Sheet but also what is behind the Balance Sheet (Quality of Risk Management Infrastructure)

Time taken to complete each Course: Two - Three hours 1. Scope of ALM Interest Rate Risk Foreign Exchange Risk Commodity Risk Stock Market Risk Liquidity Risk Credit Risk 2. of ALM Rate Scenario Table Short Term and Long Term Risk 3. Growing Relevance of ALM Nature and Significance of ALM Financial Volatility Explosion of New Products Regulatory Initiatives Management Recognition 4. A Nine-part Framework for ALM Strategic Framework Organizational Framework Operational Framework Analytical Framework Technology Framework Information Reporting Framework Performance Measurement Framework Regulatory Compliance Framework Control Framework 6. Yield Curve Analysis to Yield Curve Analysis Types of Yield Curves Analyzing Yield Curve Bond Arbitrage Strategies Application of Yield Curve 7. Interest Rate Gap Analysis - I to Gap Gap Report Considerations in Slotting of Different Items 8. Interest Rate Gap Analysis II Income Impact Gap Limits Restructuring Strategies Strengths and Limitations 9. Interest Rate Gap Analysis III Asset Restructuring Strategy Liability Restructuring Strategy Growth Strategy Shrinkage Strategy Off-Balance Sheet Strategy 10. Simulation and Scenario Analysis - I to Simulation Measuring Risk Positions Scenarios and Results Simulation Modeling Backtesting 5. Strategies of ALM On Vs. Off-Balance Sheet Strategy 11. Simulation and Scenario Analysis II Non-specific Maturity Items Business Strategies Monte Carlo Simulation Software Packages Strengths and Limitations

12. Duration I Duration Vs. Yield Duration Vs. Maturity Duration Vs. Coupons 13. Duration II Duration of a Perpetual Bond Duration of a Bond with Embedded Options Duration of Portfolio Duration of Off-Balance Sheet Items Approximation in Duration Gap Vs. Duration Payment Frequency Strategies for Risk Management 14. Duration III Duration of Equity and Leverages Examples Duration of Complex Items Leveraged Inverse Floaters Zero Coupon Yield Curve Comparison 15. Duration IV Duration of Complex Items Zero Coupon Yields Curve Comparison 16. Strategies for Internal Risk Management Dedication Immunization Indexation Active Management Rate Anticipation 17. Basis Point Value Calculation of Basis Point Value for On-Balance Sheet Items Calculation of Basis Point Value for Off-Balance Sheet Items Basis Point Value of a Portfolio 18. Convexity Definition of Convexity Convexity Calculation Convexity and Yield Convexity, Maturity, Coupon and Price Change Convexity of Portfolio Positive and Negative Convexity 19. Review of Statistical Concepts Statistical Measures Normal Distribution Correlation Volatility and Standard Deviation 20. Value at Risk -I Measures of Risk Exposure Computation of VaR Strengths and Limitations of VaR 21. Value at Risk -II VaR for Foreign Currency Spot and Options VaR for Foreign Exchange Forward VaR for Common Shares VaR for Fixed Income Securities VaR of a Portfolio Applications of VaR

22. Application of Analytical Techniques Concepts and Assumptions Application Practices Case Study I Case Study II 23. AL Organization Composition of ALCO Scope of ALCO PropertiesI 24. ALCO Meetings ALCO Meetings ALCO Data Requirements 25. ALM Policies and Procedures Policy Statement Procedure Manual ALCO Reports 26. Funds Transfer Pricing Concepts Review of Risks Practices 27. Funds Transfer Pricing - Practices Analysis of Techniques 28. Audit of ALM Overall Approach Audit JOB AIDS Measurement Tools Disclosures Regulations Global Best Practices Benchmarking Data Policy Templates Calculators in Asset Liability Management 1. Standard Deviation for a given Confidence Level 2. Confidence Level for a given Standard Deviation 3. Duration 4. Duration of a Portfolio 5. Duration using Zero Coupon Yield Curve 6. Duration of Amortizing Assets 7. Duration of uneven cash flows 8. Duration of Equity 9. Convexity 10. Convexity of uneven cash flow 11. BPV of a Bond 12. BPV of a Forward Rate Agreement (FRA) 13. BPV of a Portfolio 14. BPV of a Coupon Paying Bond 15. Value at Risk - Variance Covariance Method 16. Value at Risk for Different Weights 17. Gap Income Impact 18. Forward Rate Calculator 19. Zero Coupon Yield Calculator 20. VaR for required period and confidence level

Available Products Product Name KESDEE s Off-the-Shelf e-learning Course Libraries No. of Courses 1. Asset Liability Management 2. Liquidity Management and Contingency Funding Plan Library of 14 Courses 3. Financial Institution Analysis - CAMELS Approach Library of 08 Courses 4. Financial Mathematics Library of 07 Courses 5. Global Banking Supervision Library of 15 Courses 6. Capital Adequacy Planning (Basel I) Library of 07 Courses 7. Basel-II-University Library of 63 Courses 8. Operational Risk Management Basel II Library of 09 Courses 9. Futures and Forwards Library of 07 Courses 10. Swaps Library of 07 Courses 11. Options Library of 10 Courses 12. Market Risk - Basic Library of 08 Courses 13. Market Risk - Intermediate Library of 08 Courses 14. Market Risk - Advanced Library of 04 Courses 15. Value at Risk Library of 16 Courses 16. Credit Analysis Library of 13 Courses 17. Credit Ratings Library of 03 Courses 18. Counter party Credit Risk Library of 09 Courses 19. Credit Risk Modeling Library of 06 Courses 20. Credit Derivatives Library of 23 Courses 21. Operational Risk Management Library of 21 Courses 22. Asset Securitization 23. Asset Liability Management for Insurance Companies Library of 29 Courses 24. Anti-Money Laundering Library of 06 Courses 25. Financial Privacy Library of 06 Courses 26. Corporate Governance Library of 09 Courses 27. Sarbanes-Oxley Act Library of 12 Courses 28. Governance, Risk and Compliance Library of 07 Courses 29. Money Markets Library of 09 Courses 30. Fixed Income Markets Library of 17 Courses 31. Equity Markets Library of 10 Courses 32. Foreign Exchange Markets Library of 09 Courses 33. Commodity and Energy Markets Library of 03 Courses 34. CTM - Foreign Exchange Management Library of 07 Courses 35. CTM - Treasury Analytics Library of 05 Courses 36. CTM - Interest Rate Risk Management Library of 04 Courses 37. CTM - Funding and Investments Library of 05 Courses 38. CTM - Implementation Library of 04 Courses 39. CTM - Case Studies Library of 05 Courses 40. Understanding Financial Statements Library of 02 Courses 41. Budgeting Library of 05 Courses 42. Management Accounting Library of 07 Courses 43. Financial Accounting Library of 09 Courses 44. Mutual Funds Library of 10 Courses 45. Financial Planning Library of 09 Courses 46. UCP600 Library of 07 Courses 47. International Trade Services Library of 09 Courses 48. BBM - Deposits Library of 04 Courses 49. BBM - Advances Library of 07 Courses 50. BBM - Marketing Library of 03 Courses

Available Products KESDEE s Off-the-Shelf e-learning Course Libraries Product Name No. of Courses 51. BBM - Payment and Settlement System Library of 02 Courses 52. BBM - Foreign Exchange Operations Library of 03 Courses 53. BBM - Trade Finance Library of 02 Courses 54. BBM - Book Keeping and accounting Library of 03 Courses 55. BBM - Ancillary Services Library of 02 Courses 56. BBM - Risk Management Library of 03 Courses 57. BBM - Technology and Security Library of 02 Courses 58. BBM - HRM and CSR Library of 02 Courses 59. BBM - Retail Banking Library of 03 Courses 60. to Bank Lending Environment Library of 07 Courses 61. Basics of Banking Library of 10 Courses 62. Flotation Library of 04 Courses 63. Project Valuation Library of 03 Courses 64. Trading Operation Controls Library of 04 Courses 65. Economics Library of 16 Courses 66. Estate Planning Library of 04 Courses 67. Global Economic Crisis - Liquidity Management Library of 07 Courses 68. Brokerage Operations Library of 01 Course 69. Risk Analysis Library of 05 Courses * CTM: Corporate Treasury Management * BBM: Bank Branch Management Upcoming Products KESDEE has the required technology platform to respond to clients training requirements in the banking and financial services industry. We offer several solutions, each developed with the guidance of creditable experts.given below are few of the forthcoming products: Agricultural Finance Certification Tutorials 1. eprm Coach Library of 68 Courses 2. Associate eprm Coach Library of 36 Courses 3. efrm Coach for FRM Part I Exam Library of 37 Courses 4. ecoach for the CFA Level I Program Library of 76 Courses GFTT Global Financial Training and Technology 5280 Carroll Canyon Road, Suite 220, San Diego; CA 92121, U.S.A +1 858-558-8118 +1 858-558-8448 information@kesdee.com, gfttinfo@kesdee.com, www.gftt.com