Liquidity Risk Management for Bank Treasury Managers Training Course

Course overview

Bank treasury managers must maintain sufficient liquidity through normal conditions, market stress, rating pressure, deposit outflows and funding-market disruption—while still meeting profitability, balance-sheet and regulatory objectives. This requires more than monitoring a daily cash position. Treasury teams need defensible liquidity risk appetite measures, reliable cash-flow assumptions, credible contingency funding options and management information that explains exposures to ALCO, senior management and supervisors. Weak assumptions, fragmented data or untested contingency plans can turn a manageable funding event into a costly liquidity shortfall.

This five-day course develops the practical treasury methods used to measure, monitor and control bank liquidity risk. Participants work through contractual and behavioural cash-flow mapping, liquidity gap analysis, survival horizon calculation, LCR and NSFR interpretation, high-quality liquid asset eligibility, funding concentration analysis, stress testing and contingency funding planning. They learn how to construct a liquidity risk dashboard, challenge key modelling assumptions, assess deposit stability, identify early-warning indicators and present liquidity decisions through an ALCO-ready reporting pack.

Delivery combines instructor-led technical sessions with bank treasury case work, spreadsheet-based modelling exercises and structured peer review. Participants apply methods to a simulated bank facing deposit attrition, wholesale funding rollover pressure and collateral demands. By the end of the programme, each participant leaves with a practical liquidity risk management pack: a cash-flow maturity ladder, stress-testing template, early-warning indicator set, funding concentration analysis, contingency funding plan outline and a 90-day implementation plan for their own treasury environment.

Course objectives

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

• Construct contractual and behavioural cash-flow maturity ladders for treasury liquidity monitoring
• Calculate and interpret Liquidity Coverage Ratio components, including HQLA eligibility and net cash outflows
• Assess Net Stable Funding Ratio drivers across asset, liability and off-balance-sheet portfolios
• Build liquidity stress scenarios using idiosyncratic, market-wide and combined shock assumptions
• Estimate survival horizons and cumulative liquidity gaps under stressed cash-flow conditions
• Analyse funding concentration by counterparty, product, tenor, currency and maturity date
• Design early-warning indicators, escalation thresholds and ALCO liquidity reporting packs
• Draft a testable contingency funding plan with trigger events, funding actions and governance responsibilities

Benefits of attending

Target competencies

Who should attend

• Bank Treasury Managers — who own funding, liquidity positions and treasury control decisions
• Liquidity Risk Managers — who design metrics, limits, stress tests and liquidity risk reporting
• ALM Managers — who need to connect balance-sheet structure, behavioural assumptions and funding risk
• Treasury Dealers and Funding Managers — who manage wholesale funding, collateral and daily liquidity execution
• Bank Risk Managers — who challenge liquidity models, risk appetite measures and contingency plans
• ALCO Secretariat and Finance Managers — who prepare decision papers and liquidity information for senior governance

Requirements and prerequisites

Participants should have working experience in bank treasury, liquidity risk, asset-liability management, risk management or financial control. They should understand bank balance sheets, deposits, loans, wholesale funding, secured versus unsecured borrowing, basic interest-rate concepts and the purpose of ALCO. Familiarity with Excel formulas, filters and charts is assumed because exercises use spreadsheet-based liquidity schedules. Prior knowledge of LCR, NSFR or regulatory reporting is helpful but not essential; the course explains these measures from a treasury-management perspective. Programming, advanced quantitative modelling and prior use of a specialist treasury management system are not required.

Training methodology

The course uses short instructor-led briefings followed by treasury-focused application. Participants construct cash-flow ladders in Microsoft Excel, classify liquid assets, calculate selected LCR and NSFR drivers, and test assumptions against changing deposit and wholesale-funding conditions. A running bank case links daily liquidity management, ALCO governance, regulatory ratios and contingency actions. Small groups review one another’s stress scenarios and funding plans before completing an individual application plan that identifies the reports, limits, data owners and governance actions to improve on return to work.

Course outline

Day 1: Treasury Liquidity Risk Foundations and Governance

• Bank treasury liquidity risk sources across assets, liabilities and contingent commitments
• Liquidity risk appetite statements, limits and escalation structures
• Roles of Treasury, ALM, Risk, Finance, ALCO and the board
• Contractual versus behavioural cash-flow assumptions
• Time-bucket design for operational, tactical and strategic liquidity monitoring
• Liquidity buffer purpose, composition and encumbrance considerations
• Daily liquidity reporting architecture and management information requirements

Workshop: Participants map a simulated bank’s liquidity governance structure and produce a first-pass cash-flow maturity ladder with assigned data owners.

Day 2: Regulatory Liquidity Metrics and Balance-Sheet Drivers

• Basel III Liquidity Coverage Ratio calculation structure
• High-quality liquid asset classification, haircuts and operational requirements
• LCR outflow and inflow assumptions for deposits, facilities and wholesale funding
• Net Stable Funding Ratio available stable funding factors
• NSFR required stable funding factors for loans, securities and off-balance-sheet exposures
• Interaction between LCR, NSFR, internal limits and profitability decisions
• Management interpretation of regulatory ratio movements and binding constraints

Workshop: Participants calculate key LCR and NSFR drivers for a case-bank balance sheet and prepare a short management explanation of the results.

Day 3: Cash-Flow Forecasting, Gaps and Funding Concentration

• Contractual cash-flow projections for assets, liabilities and derivatives
• Behavioural modelling assumptions for non-maturity deposits
• Wholesale funding rollover profiles and refinancing risk analysis
• Cumulative liquidity gap analysis by tenor and currency
• Survival horizon measurement under normal and stressed assumptions
• Funding concentration analysis by depositor, counterparty, product and maturity
• Collateral, margin and intraday liquidity cash-flow considerations

Workshop: Participants build a multi-bucket liquidity gap and concentration report, then identify the three most material funding vulnerabilities.

Day 4: Liquidity Stress Testing and Contingency Funding

• Design of idiosyncratic bank-specific liquidity stress scenarios
• Market-wide and combined liquidity stress scenario construction
• Deposit run-off, wholesale rollover, drawdown and collateral-call assumptions
• Stress calibration using historical events, expert judgement and reverse stress testing
• Liquidity buffer monetisation assumptions and asset-sale haircuts
• Contingency funding plan triggers, decision rights and communication protocols
• Funding action feasibility, operational readiness and plan testing

Workshop: Teams run a combined stress scenario, estimate the bank’s survival horizon and draft trigger-based actions for a contingency funding plan.

Day 5: ALCO Reporting and Treasury Implementation

• Liquidity dashboard design for daily treasury and monthly ALCO use
• Early-warning indicators for deposits, market access, collateral and ratings
• Limit setting, breach management and risk appetite monitoring
• Variance analysis between forecast, actual cash flows and regulatory metrics
• Liquidity risk data lineage, controls and assumption governance
• ALCO paper structure for liquidity decisions and challenge discussions
• Ninety-day liquidity risk management implementation planning

Workshop: Participants assemble an ALCO-ready liquidity risk pack and complete a 90-day action plan for strengthening one process in their own institution.

Tools & standards covered

Microsoft Excel, Basel III Liquidity Coverage Ratio (LCR) standard, Basel III Net Stable Funding Ratio (NSFR) standard, BCBS 248 intraday liquidity monitoring tools

A typical training day

Live online deliveries follow the same structure in the East Africa Time zone, with shorter screen blocks and longer breaks.

What the fee includes

How you can take this course

Certification

Participants who complete the full five days receive the Skillset Development Certificate of Completion, stating the course title, course code, dates and delivery format — suitable for professional-development records and employer reimbursement.

Frequently asked questions