• 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
  

Instructional Method
Dynamic, Interactive e-learning

Recommended Background
Familiarity with basic financial concepts

For purchase,contact us at
PO Box 910207. CA 92191, USA
Phone: +1-858-755-8527 Fax: +1-858-755-6973, +1-858-756-8587, E-mail: information@kesdee.com, Website: www.kesdee.com

1. Scope of ALM

• Objectives
  
• Introduction
  
• Interest Rate Risk
  
• Foreign Exchange Risk
  
• Commodity Risk
  
• Stock Market Risk
  
• Liquidity Risk
  
• Credit Risk

2. Objectives of ALM

• Objectives
  
• Introduction
  
• Rate Scenario Table
  
• Short Term and Long Term Risk

3. Growing Relevance of ALM

• Objectives
  
• Nature and Significance of ALM
  
• Financial Volatility
  
• Explosion of New Products
  
• Regulatory Initiatives
  
• Management Recognition

4. A Nine-part Framework for ALM

• Objectives
  
• Introduction
  
• Strategic Framework
  
• Organizational Framework
  
• Operational Framework
  
• Analytical Framework
  
• Technology Framework
  
• Information Reporting Framework
  
• Performance Measurement Framework
  
• Regulatory Compliance Framework
  
• Control Framework

5. Strategies of ALM

• Objectives
  
• Introduction
  
• On Vs. Off-Balance Sheet Strategy

6. Yield Curve Analysis

• Objectives
  
• Introduction to Yield Curve Analysis
  
• Types of Yield Curves
  
• Analyzing Yield Curve
  
• Bond Arbitrage Strategies
  
• Application of Yield Curve

7. Interest Rate Gap Analysis - I

• Objectives
  
• Introduction to Gap
  
• Gap Report
  
• Considerations in Slotting of Different Items

8. Interest Rate Gap Analysis – II

• Objectives
  
• Income Impact
  
• Gap Limits
  
• Restructuring Strategies
  
• Strengths and Limitations

9. Interest Rate Gap Analysis – III

• Objectives
  
• Asset Restructuring Strategy
  
• Liability Restructuring Strategy
  
• Growth Strategy
  
• Shrinkage Strategy
  
• Off-Balance Sheet Strategy

10. Simulation and Scenario Analysis - I

• Objectives
  
• Introduction to Simulation
  
• Measuring Risk Positions
  
• Scenarios and Results
  
• Simulation Modeling
  
• Backtesting

11. Simulation and Scenario Analysis – II

• Objectives
• Non-specific Maturity Items
• Business Strategies
• Monte Carlo Simulation
• Software Packages
• Strengths and Limitations

12. Duration I

• Objectives
  
• Introduction
  
• Duration Vs. Yield
  
• Duration Vs. Maturity
  
• Duration Vs. Coupon

13. Duration II

• Objectives
  
• 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

• Objectives
  
• Duration of Equity and Leverages
  
• Examples
  
• Duration of Complex Items
  
• Leveraged Inverse Floaters
  
• Zero Coupon Yield Curve
  
• Comparison

15. Duration IV

• Objectives
  
• Duration of Complex Items
  
• Zero Coupon Yields Curve
  
• Comparison

16. Strategies for Internal Risk Management

• Objectives
  
• Dedication
  
• Immunization
  
• Indexation
  
• Active Management
  
• Rate Anticipation

17. Basis Point Value

• Objectives
  
• Introduction
  
• 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

• Objectives
  
• Introduction
  
• 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

• Objectives
  
• Statistical Measures
  
• Normal Distribution
  
• Correlation
  
• Volatility and Standard Deviation

20. Value at Risk -I

• Objectives
  
• Introduction
  
• Measures of Risk Exposure
  
• Computation of VaR
  
• Strengths and Limitations of VaR

21. Value at Risk -II

• Objectives
  
• 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

• Objectives
  
• Introduction
  
• Concepts and Assumptions
  
• Application
  
• Practices
  
• Case Study I
  
• Case Study II

23. AL Organization

• Objectives
  
• Introduction
  
• Composition of ALCO
  
• Scope of ALCO
  
• Properties

24. ALCO Meetings

• Objectives
  
• Introduction
  
• ALCO Meetings
  
• ALCO Data Requirements

25. ALM Policies and Procedures

• Objectives
  
• Introduction
  
• Policy Statement
  
• Procedure Manual
  
• ALCO Reports

26. Funds Transfer Pricing

• Objectives
  
• Introduction
  
• Concepts
  
• Review of Risks
  
• Practices

27. Funds Transfer Pricing - Practices

• Objectives
  
• Introduction
  
• Analysis of Techniques

28. Audit of ALM

• Objectives
  
• Introduction
  
• 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

• Asset Liability Management Library of 28 Courses
  
• Liquidity Management and Contingency Funding Plan Library of 14 Courses
  
• Financial Institution Analysis - CAMELS Approach Library of 8 Courses
  
• Financial Mathematics Library of 7 Courses
  
• Global Banking Supervision Library of 15 Courses
  
• Capital Adequacy Planning (Basel I) Library of 7 Courses
  
• Basel-II: University Library of 63 Courses
• Sarbanes-Oxley Act Library of 12 courses
  
• Futures & Forwards Library of 7 Courses
  
• Swaps Library of 7 Courses
  
• Options Library of 10 Courses
  
• Market Risk (Basic Level) Library of 8 Courses
  
• Market Risk (Intermediate Level) Library of 8 Courses
  
• Market Risk (Advanced Level) Library of 4 Courses
  
• Value at Risk Library of 16 Courses
  
• Credit Analysis Library of 13 Courses
  
• Credit Ratings Library of 3 Courses
  
• Counterparty Credit Risk Library of 9 Courses
  
• Credit Risk Modeling Library of 6 Courses
  
• Credit Derivatives Library of 23 Courses
  
• Operational Risk Management Library of 21 Courses
  
• Asset Securitization Library of 28 Courses
  
• Asset Liability Management for Insurance Companies Library of 29 Courses
  
• Anti-Money Laundering Library of 6 Courses
  
• Financial Privacy Library of 6 Courses
  
• Corporate Governance Library of 9 Courses
  
• Money Markets Library of 9 Courses
  
• Fixed Income Markets Library of 17 Courses
  
• Equity Markets Library of 10 Courses
  
• Foreign Exchange Markets Library of 9 Courses
  
• Foreign Exchange Management Library of 7 Courses
  
• Treasury Analytics Library of 5 Courses
  
• Interest Rate Risk Management Library of 4 Courses
  
• Funding and Investments Library of 5 Courses
  
• Implementation - Treasury Management Library of 4 Courses
  
• Case Studies - Treasury Management Library of 5 Courses
  
• Understanding Financial Statements Library of 2 Courses
  
• Budgeting Library of 5 Courses
  
• Management Accounting Library of 7 Courses
  
• Financial Accounting Library of 9 Courses
• Mutual Funds Library of 11 Courses
  
• ePRM Coach Library of 68 Courses
  
• eFRM Coach Library of 61 Courses

KESDEE has the required technology platform to respond to clients training requirements in the financial industry. We offer several solutions, each developed with the guidance of creditable experts. Given below are few of the forthcoming products:

• Financial Planning
  
• International Trade Services
  
• Bank Branch Management
  
• Mortgage Finance

Name: ......................................................................................................................................

Company: ..................................................................................................................................

Phone: ..........................................................Fax: .....................................................................

E-mail (Corporate IDs Only): ..........................................................................................................

Address: ....................................................................................................................................

I wish to learn more about your products. Please contact me.

Please send me a brochure and keep me updated on:

    E-Learning and Reference Solutions
    In-house seminars
    Worldwide seminar calendar for 2006
    Asset Securitization
    Asset Liability Management for Insurance Companies
    Top Management Forum
    Global Best Practices in ALM
    Trading Risk Management including VaR

I wish to refer my friend who might be interested in your product.

First name:   ..............................................................................................................................

Last name:   ..............................................................................................................................

Position: ...................................................................................................................................

Organization: .............................................................................................................................

Full Address: .............................................................................................................................

Phone: .....................................................................................................................................

Fax :  ......................................................................................................................................

E-mail: .....................................................................................................................................

I wish to unsubscribe from your mailing list