Increase your confidence in managing your credit union's assets and liabilities through the foundational knowledge of asset-liability management (ALM). Gain knowledge through five sessions culminating in a case study exercise that asks the attendee to put it all together and apply the information...
Increase your confidence in managing your credit union's assets and liabilities through the foundational knowledge of asset-liability management (ALM). Gain knowledge through five sessions culminating in a case study exercise that asks the attendee to put it all together and apply the information they have learned. After the case study exercise, Rochdale will cover how ALM connects to enterprise risk management (ERM).
This eSchool is endorsed by CUNA Finance Council.
Who Should Attend
This eSchool is beneficial for CEO, CFO, risk vice president, controller, comptroller, treasurer, finance analyst, finance manager and board members who sit on asset-liability committees (ALCO).
Reward, Risk and ALM
December 6, 2021 // 10:00-11:00 a.m. CT
Speaker: Thomas Back
After laying the foundation with an overview of the business of banking, attendees learn the risks associated with asset/liability management (ALM) and how ALM is related. The discussion of ALM covers the role it should play in the institution as well as the associated risks.
- Importance of ALM to safety and soundness
- ALM vs AL compliance
- Overview and core functions of financial institutions
- ALM objectives and vulnerabilities
Measuring Risk and Measuring Reward
December 7, 2021 // 10:00-11:00 a.m. CT
Speaker: Danny Van Dyke
Taking a close look at the general principles of cash flows, attendees then learn about the different types of existing analytical frameworks commonly used to evaluate cash flows—and the limitations of each.
- Cash flows
- Static gap
- Measuring reward (income sensitivity)
- Measuring risk (net economic value)
- Vulnerabilities with the traditional decision-making process
Measuring Risk versus Reward
December 8, 2021 // 10:00-11:00 a.m. CT
Speaker: Thomas Back
Having learned the analytical frameworks commonly used to evaluate cash flows, attendees will break down total return and evaluate the trade-off between risk and reward through discussion and case study. They will also walk through an example of liquidity.
- Incomplete tools and misunderstood terms
- Problem with yield and duration
- Establishing a common denominator
- Total return scenario analysis
- Marriage of income and economic value simulations
The Importance of Assumptions
December 9, 2021 // 10:00-11:00 a.m. CT
Speaker: Danny Van Dyke
Having learned the conventional analytical frameworks, attendees turn to assumptions and how they factor in to the evaluation of assets, liabilities and off-balance-sheet instruments.
- Non-maturity deposits
- Reinvestment rates
- Prepayment speeds
- Early redemptions
- Static balance sheet
- Interest rate changes (timing and magnitude)
- Discounting cash flows (curves and spreads)
Changing the Risk-Reward Profile
December 10, 2021 // 10:00-11:00 a.m. CT
The program culminates with the optimal decision-making framework for institutions and lays it out in real-world context. Along with the impact this framework would have for the various stakeholders of an institution.
- Board oversight
- Stakeholder tensions
- Case study
- Course takeaways
Integrating ALM into Enterprise Risk Management (ERM)
December 13, 2021 // 10:00-11:00 a.m. CT
Speaker: Brian Hague
Armed with an understanding of ALM, you'll explore how ALM fits within the broader perspective of Enterprise Risk Management (ERM). Attendees will learn how to use ALM to balance and align risk-taking activity across the credit union. We will also discuss how ALM information can be used to inform the ERM process and how ERM intelligence can improve the effectiveness of ALM.
All live event registrations include credit union access to the recorded event. You may also purchase the recorded event separately. Click here to see more about purchasing the recorded event.
This eSchool is available to CUNA Training Bundle users at no additional cost.
You can earn group-internet credits for this program. CPE credits will be determined immediately before the program. You must attend the live, virtual event to earn CPE credits. Viewing the recorded sessions will not qualify. For more information, please contact CUNA at 800-356-9655 or email@example.com.
Credit Union National Association (CUNA) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website.