The new chapter liquidity risk will explore the participants’ understanding of liquidity risk, their experiences with liquidity Risk Appetite setting, liquidity risk management modeling and framework, Asset/Liability management as well as related impact on regulations and crisis management post recent 2023 crisis. The discussions should also delve into the challenges and opportunities faced by the financial service businesses in managing the balance sheet and related risk effectively. We will delve into the following topics:
- Liquidity and Balance Sheet Risks Appetite: what balance sheet risks should a bank be willing to accept? How to optimize the banks’ strategic model given the liquidity and balance sheet risk entailed?
- What new regulations are under discussions in the whole financial service market? a view into different financial service players and related liquidity risk regulations and emerging practices. Comparison and insights in new management and jurisdictions practice.
- Liquidity and Balance Sheet Risk Modeling – is a review needed?: Are current liquidity and balance sheet risk models adequate for the current environment? How to best align the bank‘s balance sheet, capital & liquidity models to optimize the bank’s overall risk profile?
- Stress testing of balance sheet and liquidity: How can stress testing be used to better link balance sheet, capital and liquidity management? What are the challenges and opportunities in implementing effective stress testing frameworks?
- Governance and Crisis Management: What governance, strategies, processes are effective to respond and mitigate the impact of a crisis situation that threatens bank’s stability, reputation, or operations?
The chapter organizes 3-4 events per year and will strive to deliver a platform for exchange and learning as well as practical advice in a risk area that is fast evolving.