Introduction
The programme “Strategies for Controlling Liquidity Risk in Banks” develops professional practice in Risk and Credit. It connects the subject with workplace challenges by examining existing evidence and practices and choosing methods appropriate to the organization and its available resources.
The learning progresses from credit analysis and banking risk to financial statement and report analysis, with practical work on electrical systems, control, and operational efficiency, cash, liquidity, and working capital management, risk assessment, controls, and response. Participants prepare outputs to support workplace application and review the quality and results of implementation.
Learning objectives
- Prepare a credit analysis and risk scenario showing repayment capacity and controls in an application related to “Strategies for Controlling Liquidity Risk in Banks”.
- Read a training electrical system and identify inspection, protection, and control requirements.
- Prepare a cash forecast and options for addressing liquidity and working capital gaps.
- Prepare a risk register connecting causes, consequences, controls, and treatment responsibilities.
- Interpret performance, financial position, and cash flows using documented analysis with clear limitations.
Learning areas
1. Credit Analysis and Banking Risk
- Analyze the financing purpose, repayment sources, and nature of the business, and review the financial and nonfinancial data needed to assess the customer.
- Assess cash flows, debt servicing capacity, and collateral, distinguishing the primary repayment source from supplementary protections.
- Classify relevant credit, market, liquidity, and operational risks, considering the applicable regulatory framework and internal policies.
- Test the effects of changes in revenues, prices, and maturities on repayment capacity, and define conditions and monitoring requirements addressing the identified risks.
- Prepare a documented recommendation covering limits, assumptions, information gaps, and warning indicators without turning the training case into an actual financing decision. The application examines a case related to “Strategies for Controlling Liquidity Risk in Banks”.
2. Electrical Systems, Control, and Operational Efficiency
- Read a training single-line or control diagram, identifying supply, loads, protection and measurement devices, and system boundaries.
- Analyze load, power quality, and efficiency requirements and fault indicators, checking data accuracy and conformity with equipment specifications.
- Identify the roles of protection, earthing, isolation, coordination, and control, referring settings and execution to specialists and approved technical references.
- Design an inspection and testing checklist covering criteria, tools, responsibilities, safety procedures, and permits without instructions for intervention on an energized circuit.
- Prepare a technical report comparing readings with approved limits and presenting possible causes, proposed actions, and approval requirements before execution.
3. Cash, Liquidity, and Working Capital Management
- Analyze the cash cycle from purchasing to collection, identifying the effects of inventory, receivables, and payment terms on financing needs.
- Forecast receipts and payments by maturity, and document data sources and the likelihood of delays in expected cash flows.
- Classify receivables and debt aging, track collections and settlements, and connect follow-up actions to approved authorities and policies.
- Compare options for addressing deficits or deploying surpluses according to cost, liquidity, risk, and contractual constraints requiring review.
- Test a cash stress scenario, set alert thresholds and escalation actions, and update forecasts based on actual results.
4. Risk Assessment, Controls, and Response
- Define the work context, objectives, and assessment boundaries, and distinguish the risk source, potential event, and effects on results.
- Gather risks from processes, data, past incidents, and interviews with responsible staff, and document causes and existing controls.
- Estimate likelihood and impact using stated criteria, and review control effectiveness to determine residual risk levels.
- Select a response proportionate to the risks, resources, and authority, and specify the owner, deadline, and early warning indicator.
- Test a scenario involving changing circumstances, update the risk register, and present material risks and required decisions to the appropriate authority.
5. Financial Statement and Report Analysis
- Read the relationships between the statements of financial position, performance, and cash flows and the notes, identifying the effects of accounting policies and estimates.
- Perform horizontal and vertical analysis and compare profitability, liquidity, efficiency, and leverage indicators, considering the nature and size of the business.
- Examine earnings quality, cash flows, and nonrecurring items, and identify differences between accounting results and actual liquidity.
- Test the sensitivity of results to changes in sales, costs, collections, and financing, stating the assumptions and constraints in each scenario.
- Write a financial report linking indicators to management's question and available alternatives, presenting risks and additional data needed for the decision.
Practical outputs
- A credit memo, risk register, and early warning indicators.
- A functional diagram, checklist, and preliminary analysis of electrical system performance.
- A cash flow forecast and a plan to improve collections and the cash conversion cycle.
- A risk register, control matrix, and prioritized treatment plan.
- A comparative financial analysis report and a memo of findings and assumptions.
Who should attend
- Practitioners, specialists and supervisors whose work relates to the programme subject.
- Managers and teams working in risk and credit, according to their practical responsibilities.
- Professionals responsible for applying the outputs of “Strategies for Controlling Liquidity Risk in Banks” within their organizations.
Prerequisites
- Working familiarity with the programme field and the ability to discuss a professional case or challenge.
- Confirm the suitability of your experience and any specialist prerequisites with the Union before participation.
Conclusion
The programme “Strategies for Controlling Liquidity Risk in Banks” brings together concepts, case review and a practical application. Participants prepare steps that can be adapted to their responsibilities and organizational resources, with an indicator to follow application and review results after returning to work.
Participation arrangements and any special requests are specified in the confirmation issued by the Union.