Farm Credit Canada
Program and Participants:
In-house Training Program on Asset Liability Management, Farm Credit Canada Asset Liability Management Committee
Presented by:
Sam L. Srinivasulu, Ph.D., President of GFTT
Program Objective:
The Treasury division of FCC approached KESDEE to develop and present training material on the following topics and to address the following questions:

1. Oversight: the role of ALCO (Asset Liability Committee)

  • What should ALCO members be looking for?
  • What kind of questions should they ask?
  • Are there any other areas of FCC that should be monitored by ALCO?
  • What do other ALCO's look like and do?
  • What other education should ALCO members have?
  • What are their responsibilities from a governance perspective as well as a business operating perspective etc.?

2. Interest rate risk management policies and limits

3. Interest rate risk measurement tools and what they mean. Tools covered should include, but not necessarily be
limited to:

  • NII simulation
  • MVPE (aka EVE)
  • Duration of equity
  • Interest rate gaps

4. Understanding and interpreting the yield curve

5. Managing interest rate risk

6. Best practices/future direction of interest rate risk practices
Day One: 1. ALM: Integrated Approach
2. Interest rate risk measurement tools and what they mean. Tools covered should include, but not necessarily be limited to:
  • NII simulation
  • MVPE (aka EVE)
  • Duration of equity
  • Interest rate gaps
3. Interest rate risk management policies and limits
4. Oversight: the role of ALCO (Asset Liability Committee)
  • What should ALCO members be looking for?
  • What kind of questions should they ask?
  • Are there any other areas of FCC that should be monitored by ALCO?
  • What do other ALCO's look like and do?
  • What other education should ALCO members have?
  • What are their responsibilities from a governance perspective as well as a business operating perspective etc.?
5. Understanding and interpreting the yield curve
6. Managing interest rate risk
7. Best practices/future direction of interest rate risk practices
Day Two: 1. A Nine-Part Framework for Asset Liability Management
2. Strategies of Asset Liability Management
3. Yield Curve Analysis
4. Interest Rate Gap Analysis - I
5. Interest Rate Gap Analysis - II
6. Interest Rate Gap Analysis - III
7. Simulation and Scenario Analysis - I
8. Simulation and Scenario Analysis - II
9. Duration I
Day Three:
10. Duration II
11. Duration III
12. Duration IV
13. Strategies for Interest Rate Risk Management
14. Basis Point Value
15. Value at Risk - I
16. Economic Capital
17. Funds Transfer Pricing
18. Global Best Practices in Asset Liability Management
All delegates along with KESDEE moderator Dr. S. L. (Sam) Srinivasulu were logged into KESDEE's e-Learning & Reference Solutions on Internet. The group discussed concepts, analyzed actual case studies, used Learn By Doing simulations, and took quizzes, and actively participated in the discussion.

The power and potential of KESDEE's e-learning was put to full use to the delight and benefit of all delegates.

The evaluations were exceptional.