Managing Banking Treasury and Risk

Ensuring liquidity and managing risk by Bank Treasury is fundamental to the survival of the institution. Market, interest rate, and operational risk must be measured, monitored and controlled by Treasury to safeguard profitability. Treasury uses technology, funding and hedging instruments to respond to changing balance sheet, regulatory and market scenarios.

Salvo Global’s 2 day interactive course is designed to provide Treasury and other bank staff with current, practical knowledge of the essential elements of Bank Treasury Evaluate the extent of liquidity risk exposure in a bank, via the application of a full suite of liquidity risk metrics.

Top Learning Objectives

  • Understand in depth how the financial system and its’ products work
  • Analyze a bank financial structure and the different types of risks arising from the assets and liabilities on the balance sheet
  • Understand the basic tools to measure liquidity and risk and its sensitivity to changing regulatory and market conditions
  • Know which funding instruments and hedging strategies for risk and liquidity management are available and when to best put them into practice
  • Develop liquidity buffers and analyze their management
  • Evaluate the appropriate level of liquidity risk controls, with the consequences for lending
  • Understand the various types of ALM models and their use
  • Understand the concept of funds transfer pricing and evaluate the appropriateness of a particular model to any type of institution
  • Understand the role and influence of the Asset Liability Committee (ALCO) of a bank, and its appropriate governance framework
  • Formulate a range of funding policies for the banking and trading books
  • Understand complex, structured derivative products and trading strategies, how and when to use them
  • Acquire a thorough understanding of how the financial system and how individual products work
  • Gain an analysis of Basel Regulations business model and economic constraints.
  • Get an introduction to optimization modelling of the balance sheet under Basel III constraints.
  • Learn how to integrate Basel Regulations constraints into the bank funds transfer pricing framework and to developing a robust liquidity transfer pricing process

Who Should Attend?

This course is specially designed for:

  • Bank Treasury Managers
  • Bank Asset-Liability Managers
  • Bank Traders and Dealers
  • Bank Operations Managers
  • Bank Internal Auditors
  • Finance Regulators
  • Bank management responsible for Corporate Planning, Internal Control and Regulatory Compliance
  • ALCO and ALCO support staff

Trainer's Background

The Trainer is a US consultant in Treasury with expertise in global cash management, cash forecasting, treasury technology, investments, debut, foriegn exchange and working capital management.

He is also  former Chairman of the AFP and has served on several of the association’s committees. He holds a BA from University of Richmond, an MBA from Virginia Commonwealth University and the CTP certification from the AFP.

Prior to establishing his consultancy, David held various senior positions in corporate Treasury including Assistant Treasurer at EDS Corp (a $22 bn High Tech company with operations in 83 Countries), Director of Treasury at Fidelity Investments (a $14 bn revenue Mutual Fund company) and Assistant Treasurer at Holiday Inns (a $bn hotel chain with operations in 103 countries).

Among many client projects, he has:

Coordinated the establishment of a sovereign debt management system and cash management structure for an EM Country. The scope of the project included IMF, Bi-lateral and World Bank loans as well as the design and implementation of a national cash management system.

Engagement by a $17 bn MNC with operations in 123 countries to coordinate a banking rationalization; implement SAP Treasury, a TWS and install SWIFT Net. Improved efficiency; reduced bank accounts; reduced bank fees; and improved cash control.

Engaged by a PE firm on a $1bn “carve out” to establish Treasury: global cash, cash forecasting foreign exchange, investments, debt and working capital. Engagement included a TWS, SWIFT Lite, policies, procedures, systems, banking infrastructure and staff training.

For a $5 bn PE firm designed a Web based Treasury Best Practice survey as a timely, cost effective means to identify Foreign Exchange risk and cash inefficiency among 16 portfolio companies operative in 26 countries. Identified opportunity for a 35% improvement in daily cash availability and reduced risk by implementation of a formal FX program across all companies.

Implemented a physical cash concentration structure, cash forecasting program, In-House bank, TWS, coordinated a Bank RFP and established a FX program for a $3 bn MNC resulting in: 25% reduction in daily surplus cash and 95% cash forecasting accuracy.

Hired by a $22 bn MNC with operations in 83 countries with no formal cash management of FX programs. Led a staffing restructuring, designated physical cash concentration structure, implemented SWIFT Net, SAP Treasury, a TWS and a formal FX program, Reduced global staff from 17 to 9; 44% reduction in daily cash; improved control over FX exposures.

Designed and implemented a global cash management structure, Treasury work station and an In-house bank covering 83 countries that resulted in a $715 mm (44%) reduction in surplus cash, daily visibility of 94% of cash balances and 95% forecasting accuracy over 90 day horizons.

Designed and implemented a global in-house bank concentration and foreign exchange system for a $1 bn process outsources company with operations in 8 countires. Engagement included policies, procedures, systems and a bank RFP implementation. Investable cash improved by 45%.

Coordinated the implementation of a TWS, a Treasury Web Site and a Senior Management Dashboard in order to better leverage the delivery of Treasury tools and information. Within the ifrst year the Web Sites enjoyed over 9,000 monthly hits. 

The trainer has helped many notable organizations achieve improved performance through training and consulting advice. These include:

• Aboitiz
• Ayala Land
• D&L Industries
• Gardenia
• Del Monte
• Global Business Power
• Globe Telecom
• Isla Petroleum
• Metro Pacific Investments
• Oberthur Card Systems
• American Express
• American Red Cross
• Arabian Darb
• Associated Bank
• Bank of Barbados
• Bank of China
• Bank of Jamaica
• Bangko Sentral ng Pilipinas
• Bunco BHD

• Bank of Trinidad
• Bank of New York
• BP Finance Bechtel Group
• Bladex
• BNP Paribas Citibank
• Cooper Industries
• Canadian Housing Authority
• Canon
• Dar al-handasah Garanti Leasing
• EDS Corp.
• Garanti Leasing
• Ghana Telecom University
• Holiday Inns
• JP Morgan Chase
• Ministry of Finance of Zambia
• Office of Utilities Regulation
• SSA Marine
• State Bank of India
• South Rub Al-Khali Company, Ltd

• Bindura Nickel Corp
• Dubai Gold & Commodities
• Freeport-Mcmoran Mining
• Fresnitto Mining
• Kuwait Petroleum
• Kosmos Energy
• Nigerian Export Import Bank
• Minera Andes
• Oman Oil Co.
• Petronas Oil & Gas
• Phoenix Petroleum
• Robinsons Bank
• UT Global Services
• Saudi Aramco Refining &
• Svenska Petroleum
• Ras Gas Ltd

Event Details

11th July – 12th July 2019
Kuala Lumpur, Malaysia

The training has given me an overview on how to manage organisations liquidity through various methods to increase the banks’ profitability.

Azania Bank Limited
(Senior Treasury Officer)