Interest Rate Risk Management for Mutual ADIs

Overview

Learn now to identify, measure, manage and report interest rate risk.

The recent dramatic increase in interest rate volatility has led to a substantial increase in interest rate risk which can severely impact a Mutual's net interest margin. In addition, on balance sheet management of lending has become more prominent as off balance sheet alternatives have faded. This practical 1 day course provides you with the essential knowledge to be able to manage the interest rate risk in the balance sheet using best practice techniques.

What you will get out of this course:

• An understanding of interest rate risk and how it can affect your ADI
• A detailed understanding of what the regulator expects including a review of APS 117.
• Knowledge of the new APRA quarterly interest rate risk report
• A working knowledge of the measurement techniques to quantify the level of interest rate risk
• The ability to understand and set your Risk Appetite and articulate it in terms of risk limits
• The ability to construct meaningful risk reports and be able to interpret them
• The ability to use interest rate risk information strategically
• An understanding of the alternative techniques to change and manage your interest rate risk profile.
• An appreciation of how to use derivatives (interest rate swaps) to manage your risk and what is required to be able to use these instruments
• The ability to assess the impact of alternative strategies on your level of risk
• The ability to review or develop an interest rate risk policy

Brochure: pdf

View course location: map

Contact: Andrew Tagg / David Tattam