The Mechanics of Asset and Liability Management (Online)

IFF Training

How long?

  • 16 weeks
  • online

IFF Training


Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

Read more about Marketing

Marketing courses will plunge you into the vast field of marketing. In these courses, you will learn a variety of topics that cover each stage of runn...

Read more about Operations

Operations management has recently become a crucial part of any company's framework. This complex process focuses on reducing organizational expenses ...

Read more about Strategy

In order to keep the company that you are managing or your own business competitive, you need to have a clear plan of action, in other words, you must...


Comprehensive course analysis

Unbiased reviews from past participants
Global companies alumni of this course worked for
Positions of participants who took this course
Countries where most past participants are from
Individual needs analysis

About the course

An intensive online course which will guide you through the complex world of asset and liability management. Expert training delivered 100% online

Course Structure

The course takes place over 16 weeks and compromises eight core units. The units will be released every two weeks from the start of the course. Download the units or study completely online.

Assessment and Post Graduate Certification

At the end of each unit there is an assessment that will allow you to benchmark your growth in knowledge and understanding. For those wishing to receive a Post Graduate Certificate from Middlesex University, an additional marked assignment of 5000 words will also need to be submitted.

Syllabus Modules

Unit 1 - ALM for Banks in Context

Learning Objectives

  • A sound understanding of Asset Liability Management (ALM) in terms of the scope, coverage and institutions to which to which it applies
  • A sound understanding of the importance of ALM, specifically to banks
  • A critical appreciation of the concepts which underpin banking:
    • Why banks exist and their economic rationale
    • What they do
    • The structure of bank financial statements
    • Introduction to performance measurement in banks
  • How asset and liability management contributes to the financial wellbeing of banks
  • A critical appreciation of the core areas of capital, liquidity and interest risk management and the central role of regulation
  • A sound understanding of importance of sound governance and management of the ALM function in banks

Unit 2 - Risks in Banking and the Function of ALM

The primary sources of risk inherent in banking and, in particular ALM * The economics of risk management and why this is important * What is meant by Enterprise-Wide Risk Management and why it is important in ALM * ALM in banking, with particular reference to the scope of the ALM function, the relationship between the treasury function and ALM, and key issues that influence a bank’s approach * Key ALM activities, including the mismatch in management and performance measurement, Funds Transfer Pricing (FTP), and liquidity management * Key challenges in risk management and ALM, including technology * and people.

Unit 3 - Roles, Responsibilities, and Constraints of ALM

To understand and be able to explain:

  • The importance of ALM to the achievement of strategic objectives and the creation of shareholder value
  • The role and importance of capital management within ALM
  • The international regulatory framework for banks (Basel III) - origins and aims of Basel III and the Basel Committee today
  • Key principles of Basel III, including minimum capital, leverage ratio, and liquidity requirements, including differing, UK, US and European perspectives
  • Responsibilities for risk disclosure and the regulatory framework for disclosures
  • The impact of Basel III and criticisms against Basel III
  • Role and responsibilities of the board of directors and the role, composition, authority and workings of the senior ALM committee

Unit 4 - ALM and Market Risk

To understand and be able to explain:

  • The meaning and importance of market risk
  • Sources of market risk
  • Traditional techniques to identify market risk, including gap analysis, duration analysis, scenario analysis
  • Value-At-Risk (VAR) and its advantages and disadvantages
  • Methods that can be used for calculating VAR, including the historical method, parametric method and Monte Carlo method
  • The Economic Value of Equity (EVE), its advantages and disadvantages and how to calculate it

Unit 5 - ALM and Capital Risks

To understand and be able to explain:

  • The definition and role of bank capital
  • How to measure bank capital and exposures?
  • Different types of bank capital
  • Internal Capital Adequacy Process (ICAAP) and Pillar 2
  • Risk governance, appetite and strategy, in terms of defining the extent of responsibility, accountability and involvement of senior management; defining and articulating the risk appetite; and reconciling capital planning and strategic planning

Unit 6 - ALM and Liquidity Risk

  • The importance of understanding liquidity risk vis-à-vis financial crises
  • Liquidity management and liquidity risk, in terms of funding (cash flow) liquidity risk and market (asset) liquidity risk
  • Measuring and managing market liquidity risk
  • The nature and importance of liquidity resources
  • The operation of Funds Transfer Pricing (FTP) and the determination of FTP rates
  • Liquidity risk measurement and management as regards Basel III, with respect to the liquidity index, deposit insurance and purchasing liquidity vs. using stored liquidity

Unit 7 - ALM Techniques

To understand and be able to explain:

  • The relevance of hedging and the types of derivative instruments used for such purposes in ALM
  • The principles of hedging, both through derivatives diversification
  • The meaning and importance of financial futures and their relevance to ALM
  • The structuring financial futures through futures contracts
  • The role and importance of future margins
  • The use of interest rate futures to hedge a gap position
  • The meaning and importance of options and their relevance to ALM

Unit 8 - The Future of ALM

To understand and be able to explain:

  • What the future may hold beyond Basel III in terms of potential regulatory challenges and changes ahead
  • Potential capital impact for the banking industry and different sectors
  • Potential variations in capital impacts between geographies, institutions of different sizes and business model
  • Likely adaptations to the current regulation
  • The potential future of ALM in light of changes
  • Beyond the reactive, after-the-fact ALM process
  • Why ALM must recognise that asset origination and liability raising has to be connected


Roger Mills

Roger Mills is an Emeritus Professor at the University of Reading. For more than 20 years, he was Professor of Finance and Accounting at Henley Management College, now Henley Business School and, subsequently, a Professor Dr in the VU University, Amsterdam. Roger has a unique blend of academic ...

Videos and materials

The Mechanics of Asset and Liability Management (Online) at IFF Training

From  GBP 1 999$2,858
Add coaching to your course booking

Coaching can personalize and deepen learning for you and your organization.

Something went wrong. We're trying to fix this error.

Thank you for your application

We will contact the provider to ensure that seats are available and, if there is an admissions process, that you satisfy any requirements or prerequisites.

We may ask you for additional information.

To finalize your enrollment we will be in touch shortly.


Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

Read more about Marketing

During Marketing courses, you will learn how to develop a business idea and create the right website to promote your product. You will gain the skills to analyze your business performance and make key decisions that improve the efficiency of your bus...

Read more about Operations

When it comes to operations control, whether you’re trying to optimize workflow or marketing and sales operations, you need to impact as many variables at once as possible in order to have a greater effect. However, it's not always that easy. How sho...

Read more about Strategy

Strategy courses contain a large amount of practice. You will be able to analyze the company's performance and make a strategic development plan. All practices are based on real cases that each of you may encounter. The courses will also introduce yo...

Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.

We are happy to help you find a suitable online alternative.