Contingency Planning and Liquidity Risk Mitigation: A Comprehensive Training Course

Introduction

Effective contingency planning and robust liquidity risk mitigation are essential for central banks and financial institutions to navigate periods of market stress and crisis. This training course is designed to provide a comprehensive and practical guide to building a resilient framework for managing liquidity risk. Participants will gain a deep understanding of the drivers of liquidity risk, from sudden market shocks to a bank run, and learn how to design and implement a robust contingency plan that ensures the financial system remains stable and functioning in a crisis.

The program focuses on the crucial link between liquidity risk management and the broader financial stability framework. We will examine the policy toolkit available to central banks and regulators, including the role of a central bank as a lender of last resort, the use of liquidity requirements, and the importance of a well-defined crisis management plan. By combining theoretical foundations with real-world case studies, this course will equip participants with the skills necessary to navigate a dynamic risk landscape and contribute to a more resilient and credible financial system.

Target Audience

  • Central bank financial stability staff
  • Financial regulators and supervisors
  • Commercial bank risk managers
  • Government finance and planning officials
  • Academics and students of finance
  • International financial institution staff
  • Public sector debt managers
  • Legal and compliance professionals

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the core concepts of liquidity risk and its drivers.
  • Analyze how to design and implement a robust contingency plan.
  • Describe the different types of liquidity risk mitigation tools.
  • Evaluate the challenges of managing a liquidity crisis.
  • Discuss the role of central banks and regulators in a crisis.
  • Apply analytical techniques to assess and monitor liquidity risk.

Modules Course Content

Module 1: The Foundations of Liquidity Risk

  • Defining liquidity risk and its drivers
  • The difference between funding liquidity and market liquidity
  • The causes and consequences of a bank run
  • The role of central banks as a lender of last resort
  • The importance of a robust liquidity framework

Module 2: Liquidity Risk Management

  • The role of a bank's internal liquidity management
  • The use of liquidity requirements and stress testing
  • The challenges of managing a central bank's liquidity portfolio
  • The importance of a robust liquidity framework
  • The use of new technologies for risk management

Module 3: Contingency Planning

  • The purpose and objectives of a contingency plan
  • The role of a central bank's crisis management plan
  • The importance of a well-defined enforcement policy
  • The challenges of a cross-border crisis
  • The importance of a well-defined communication strategy

Module 4: The Role of the Central Bank

  • The central bank's mandate for financial stability
  • The coordination of monetary and macroprudential policy
  • The role of the central bank in a crisis
  • The challenges of independence and accountability
  • The central bank's role in a financial crisis

Module 5: Crisis Preparedness and Management

  • The role of a crisis management plan
  • The importance of a clear communication strategy
  • The use of early warning indicators
  • The role of a central bank in a crisis
  • The coordination of policy and communication

Module 6: Cross-Border Crisis Management

  • The challenges of a cross-border crisis
  • The role of international cooperation
  • The use of a central bank's swap lines
  • The role of the International Monetary Fund (IMF)
  • The importance of a global resolution framework

Module 7: The External Sector and Financial Stability

  • The impact of a currency crisis on a country's financial system
  • The role of exchange rates and foreign currency debt
  • The challenges of managing a currency crisis
  • The role of international cooperation
  • The importance of a resilient external sector

Module 8: The Role of Technology and FinTech

  • The impact of FinTech on financial stability
  • The challenges of regulating FinTech
  • The role of new technologies in supervision
  • The impact of digital currencies
  • The use of technology for surveillance

Module 9: Global Regulatory Frameworks

  • The role of the Financial Stability Board (FSB)
  • The Basel Accords (Basel III)
  • The challenges of global policy coordination
  • The role of international standards
  • The importance of a level playing field

Module 10: Case Studies and Current Debates

  • The 2008 Global Financial Crisis
  • The lessons from past financial crises
  • The debate over the design of a resolution framework
  • The challenges of managing a financial crisis
  • The future of financial stability

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Contingency Planning And Liquidity Risk Mitigation: A Comprehensive Training Course in Kenya
Dates Fees Location Action