Certificate in
Liquidity Risk Management:
Basel III Liquidity Standards

The 2008 subprime crisis is frequently linked to liquidity risk concerns and the perceived inadequacy of banking regulations, notably the Basel Accords, in addressing this issue. Basel III emerged as a direct response, aiming to establish a more robust liquidity risk management framework.

This training program is designed to equip delegates with a comprehensive understanding of Basel III's liquidity requirements and the associated risk management framework. Participants will receive an in-depth overview of the essential elements for crafting financial statements and disclosures under Basel III, with a specific focus on liquidity standards.

This training course will feature:

• Understanding Basel III standards regarding liquidity measures
• liquidity risk measurement tools and techniques
• Developing liquidity management Strategies
• Implementing Basel III standards
• Producing liquidity indicators and reporting statements

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

This training course is suitable to a wide range of professionals but will greatly benefit:

• Board level members who wish to develop their understanding of Basel III
• Auditing Professionals working with public sector organizations
• Corporate governance directors
• Internal auditors
• Corporate compliance officials
• Professionals seeking to develop their understanding of Liquidity Risk Management
• Finance and accounting personnel

This training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes interactive case studies from the real world/delegates’ company, discussion and evaluation of the latest international tools & techniques and doing role plays.

• Defining business versus Financial Risk
• Types of Financial Risk: Market, Credit, Liquidity and Operational Risk
• Identifying Risk
• Measuring Risk
• Mitigating Risk
• Implementation and control

• Sources of Liquidity Risk
• Financial Statements versus Cash Position
• Measuring Liquidity Risk through Financial Analysis
• Cash Flow Forecasting
• Capital Structure

• 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

• Understand the shortcoming 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

• 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

Anderson Certificate of Completion will be provided to delegates who attend and complete the course