Asset & Liability Management in Banking: Strategies for Risk & Profitability

Name: Asset & Liability Management in Banking: Strategies for Risk & Profitability
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Comprehensive Asset and Liability Management: Risk, Liquidity, and Profitability Strategies in Modern Banking

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Asset & Liability Management in Banking: Strategies for Risk & Profitability

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Course Overview

The Asset & Liability Management in Banking: Strategies for Risk & Profitability course equips banking professionals with the knowledge and tools to manage balance sheets, mitigate financial risks, and enhance profitability. Participants will gain expertise in liquidity management, capital adequacy, interest rate risk, and balance sheet optimization.

Through case studies, simulations, and interactive sessions, this training will explore asset liability management strategies, balance sheet management, and risk-return optimization techniques. Attendees will also learn how to implement Funds Transfer Pricing (FTP), strengthen treasury operations, and comply with regulatory frameworks such as the Basel and IFRS standards.

By the end of the program, participants will be able to design and execute effective ALM frameworks that ensure financial stability, optimize returns, and position their institutions for long-term success.

Target Audience

Bank Treasury Managers
Risk Management Professionals
ALM Analysts & Specialists
CFOs & Financial Controllers
Banking Operations Managers
Members of Asset and Liability Committees (ALCOs)

Targeted Organizational Departments

Treasury and ALM Units
Risk Management & Compliance Divisions
Corporate Finance & Strategy Teams
Liquidity and Capital Management Departments
Internal Audit & Financial Control Units

Targeted Industries

Commercial and Retail Banking
Investment Banking
Central Banks and Regulators
Insurance and Financial Services
Microfinance and Development Finance Institutions

Course Offerings

By the end of this course, participants will be able to:

Apply advanced asset liability management strategies to optimize balance sheet performance
Identify and mitigate liquidity, interest rate, and capital risks
Implement Funds Transfer Pricing (FTP) to improve profitability and transparency
Manage mismatches between assets and liabilities with effective risk-return optimization
Strengthen governance, compliance, and treasury practices in line with global standards
Develop sustainable ALM strategies to enhance resilience and profitability

Training Methodology

The course uses a blended approach that combines lectures, group discussions, case studies, and scenario-based simulations. Participants will analyze real-world banking challenges and explore how asset liability management frameworks can be applied in practice.

Interactive workshops will allow learners to simulate treasury operations, conduct stress testing, and evaluate profitability strategies. Group work and peer-to-peer exercises foster collaboration, while reflection sessions reinforce daily lessons.

This dynamic approach ensures participants not only understand theoretical ALM principles but also acquire the practical skills needed to implement them effectively in their organizations.

Course Toolbox

Course Material
Risk & Liquidity Management Templates
Balance Sheet Stress Testing Models
Funds Transfer Pricing (FTP) Framework Samples
Basel and IFRS Compliance Checklists
Practical ALM Planning Worksheets

Course Agenda

Day 1: Fundamentals of Asset & Liability Management

Topic 1: History and Evolution of Asset & Liability Management
Topic 2: Traditional vs. Modern ALM Practices in Banking
Topic 3: Structure of Banking Balance Sheets and Intermediation
Topic 4: Core Principles of ALM and Risk Mitigation
Topic 5: Introduction to Basel Regulatory Frameworks and ALM Implications
Topic 6: Case Studies on Early ALM Failures and Lessons Learned
Reflection & Review: Identifying the foundations of effective ALM

Day 2: Liquidity & Capital Management Strategies

Topic 1: Principles of Liquidity Management in Banks
Topic 2: Capital Adequacy, Basel Compliance, and Risk-Based Capital
Topic 3: Funding Liquidity vs. Market Liquidity Risk
Topic 4: Contingency Funding Planning and Stress Testing
Topic 5: Role of Treasury in Liquidity & Capital Optimization
Topic 6: Case Study – Savings & Loan Crisis and Liquidity Collapse
Reflection & Review: Building resilient liquidity and capital frameworks

Day 3: Risk Management & Return Optimization

Topic 1: ALM Risk and Return Optimization Models
Topic 2: Interest Rate Risk in the Banking Book (IRRBB)
Topic 3: Credit, Prepayment, and Mismatch Risk in ALM
Topic 4: Funds Transfer Pricing (FTP) Frameworks and Applications
Topic 5: Hedging Strategies with Derivatives, Bonds, and Swaps
Topic 6: Stress Testing Balance Sheets for Risk-Return Tradeoffs
Reflection & Review: Balancing profitability with sound risk management

Day 4: Treasury, Profitability & ALM Governance

Topic 1: Treasury Operations and Bank Profitability Strategies
Topic 2: ALM as a Profit Centre and Value Creator
Topic 3: Role of the ALCO (Asset and Liability Committee) in Governance
Topic 4: ALM Reporting, IFRS/IAS Standards, and Compliance Practices
Topic 5: Scenario Planning and Simulation Tools in ALM
Topic 6: Case Study – Treasury and ALM Governance in Practice
Reflection & Review: Strengthening governance and profitability through ALM

Day 5: Advanced ALM Applications & Future Outlook

Topic 1: Advanced Modelling Tools (Stochastic Models, VaR, EVE)
Topic 2: Economic Value Management and Capital Allocation Strategies
Topic 3: ALM and Emerging Regulatory Trends (IFRS 9, Solvency II, Basel IV)
Topic 4: Digital Transformation in ALM – AI, Analytics, and Automation
Topic 5: Integrating ESG and Sustainability into ALM Frameworks
Topic 6: Future Trends in Global Asset & Liability Management
Reflection & Review: Designing forward-looking ALM strategies for resilience

FAQ

What specific qualifications or prerequisites are needed for participants before enrolling in the course?

No strict prerequisites are required. A background in banking, finance, or treasury is recommended to maximize the learning experience.

How long is each day's session, and is there a total number of hours required for the entire course?

Each session lasts approximately 4–5 hours, including breaks and interactive activities. The full program spans five days, totaling around 22–25 hours of instruction.

Is Funds Transfer Pricing (FTP) practical for smaller banks, or only for large institutions?

FTP can be adapted to the scale of any institution. Smaller banks can adopt simplified models that still enhance transparency, accountability, and profitability.

How This Course is Different from Other ALM Courses

This program goes beyond theory by combining balance sheet management, risk-return optimization, liquidity and capital planning, and profitability strategies into one comprehensive curriculum. Unlike standard courses that focus mainly on compliance, this training empowers participants to build practical, forward-looking ALM frameworks that strengthen both stability and performance.

It emphasizes real-world applications, interactive exercises, and governance practices that prepare participants to adapt to regulatory shifts, market volatility, and the digital transformation of banking.

credits: 5 credit per day

Course Mode: full-time

Provider: Agile Leaders Training Center