The asset-liability committee (ALCO) is the primary balance sheet risk forum in a bank, and is recognised as such by the Regulatory Authorities. An efficient ALCO process enables a bank to manage risk effectively and optimise its balance sheet, with resulting positive impact on profit.

Crucially, in the era of the Senior Managers Regime (SMR), a robust ALCO infrastructure is an essential ingredient in best-practice corporate governance.

This course is repeated on 28 June – Click here to book

Overview

This one-day interactive workshop will raise awareness and understanding of recommended best-practice principles for bank ALCO governance and procedure. Aimed at senior managers and executives in any banking institution, as well as all staff involved in the ALCO process, the course presents essential tools required to inculcate the right governance culture in a bank. This includes  a range of policy templates that can be applied in any bank, together with real-world examples and case studies to demonstrate techniques.

Delegates will gain a clearer understanding of how to formulate and drive the ALCO governance process in the most effective way, plus a tool-kit of best-practice ALCO templates.

Who should attend?

  • All ALCO members
  • Treasury, Risk and Finance senior management
  • Board Executive and Non-Executive Directors
  • Regulators
  • Regulatory reporting department
  • Compliance and Internal audit

Outcomes

The workshop is interactive and exercise-based, presentations are supplemented with Group exercises that will demonstrate best-practice ALCO process implementation. Extensive use is made of case studies and real-world practical examples to deliver learning outcomes.

  • Understand the proper role of the asset-liability committee in Bank governance and risk management
  • Learn how to implement a genuinely effective and robust ALCO process
  • Become familiar with ALCO organisation and operating framework
  • Understand the ALCO as part of the balance sheet risk triumvirate
  • Draft (as part of a group exercise) the ALCO Agenda and MI Pack

Agenda

The role of the asset-liability committee in Bank governance and risk management

  • Bank risk management operating framework
  • Board and ExCo interaction

ALCO organisation and operating framework

  • Membership, responsibilities
  • The ALCO Terms of Reference: best-practice framework
  • Reporting line and Board-delegated authority
  • Confirming the timetable and “standing items” diary
  • Sub-committee organisation and reporting
    • Balance sheet management committee
    • Products pricing committee

ALM policy framework

  • Policy approval process
  • Appropriate policy-setting procedure: fitting policy in line with the bank operating model
  • Hedging policy

Working as part of the balance sheet risk triumvirate

  • Effective interaction with CRO and CFO offices and committees
  • Managing and driving balance sheet risk culture

The ALCO MI pack

  • Guidelines for constructing a fit-for-purpose MI deck
  • Recommended ALCO MI pack template structure

WORKSHOP EXERCISE: Drafting the ALCO Agenda and MI pack

  • Balance sheet review: assessing items for the ALCO agenda
  • Datasets for inclusion in MI pack
  • Most effective way to communicate risk exposure data and MI
  • Forward planning: the year’s schedule, agenda of standing items + schedule

Programme

Registration: 09:00
Start: 09:30
Close: 17:00

Lunch will be served and there will be two 15 minute breaks (mid-morning, mid-afternoon).

* Please note that the programme sequence and/or subject matter may differ from what is presented herein; the programme is constantly being updated to embrace new ideas and developments – as they evolve.

Trainers use a blend of presentational methods in order to assist in a delegate’s understanding of the workshop content; where applicable and possible, the workshop is enhanced through the use of group exercises, role play, and case studies.

Trainer

Professor Moorad Choudhry

Professor Moorad Choudhry lectures on the MSc Finance programme at University of Kent Business School. He has 30 years experience in banking in the City of London and was latterly Treasurer, Corporate Banking Division at Royal Bank of Scotland. He has served as Chair of the ALCO at three different banking institutions, and is author of The Principles of Banking (John Wiley & Sons Ltd 2012).

In-house

Take this training in-house

If you have five or more delegates who wish to attend this briefing, it may be more cost effective to run it in-company. To find out more about in-company training, please contact Philip Allen Director of Learning on 0207 216 8843 or training@ukfinance.org.uk

Bank ALCO Governance and Process Best Practice
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Workshop Details
Venue:

UK Finance, 5th Floor
Angel Court
London, EC2R 7HJ
Time: 09:00 - 17:00

Start Date: 12th March 2019
End Date: 12th March 2019

Prices:

£650 (+VAT) – Members
£800 (+VAT) – Non-members