Bank ALCO Governance and Process Best Practice

Regulators worldwide stress the importance of a bank’s asset-liability committee (ALCO) process as an essential part of effective risk management infrastructure and balance sheet management capability in a bank.

This one-day workshop has been designed to raise awareness and understanding of recommended best-practice principles for ALCO governance and procedure. Aimed at senior managers and executives in all types of banking institutions, as well as all staff involved in the ALCO process, the workshop presents essential tools and techniques of value in inculcating the right governance culture, as well as a range of templates that can be applied at any bank.

At the end of the workshop you will have an understanding of ALCO terms of reference formulation, a clearer understanding of how you formulate and drive the governance process in the most effective way and possession of a tool-kit of best-practice ALCO templates.

Who should attend?

  • All ALCO members
  • Treasury, Risk and Finance senior management
  • Board Executive and Non-Executive Directors
  • Regulators
  • Regulatory reporting department
  • Compliance and Internal audit

The role of the asset-liability committee in Bank governance and risk management:

  • Bank risk management operating framework
  • Board and ExCo interaction

 

ALCO organisation and operating framework:

  • Membership, responsibilities
  • The ALCO Terms of Reference: best-practice framework
  • Reporting line and Board-delegated authority
  • Confirming the timetable and “standing items” diary
  • Sub-committee organisation and reporting
    • Balance sheet management committee
    • Products pricing committee

 

ALM policy framework:

  • Policy approval process
  • Appropriate policy-setting procedure: fitting policy in line with the bank operating model
  • Hedging policy
  • Risk appetite framework

 

Working as part of the balance sheet risk triumvirate:

  • Effective interaction with CRO and CFO offices and committees
  • Managing and driving balance sheet risk culture

 

Effective governance of the ILAA and ICAAP process:

  • What to ensure is in place during ILAA / ICAAP preparation and submission
  • What to look for in the ILAA / ICAAP summary to ensure regulator sign-off

 

The ALCO MI pack:

  • Guidelines for constructing a fit-for-purpose MI deck
  • Recommended ALCO MI pack template structure

 

Working with the Board:

  • ALCO pack and the Board paper summary / briefing note
  • Deciphering the ALCO pack:
    • What to look for
    • Does it answer the Board’s questions?
    • Is there anything missing?
  • Reviewing ALCO, Exco and Board interaction and effectiveness

 

WORKSHOP EXERCISE: Drafting the ALCO Agenda and MI pack:

  • Balance sheet review: assessing items for the ALCO agenda
  • Datasets for inclusion in MI pack
  • Most effective way to communicate risk exposure data and MI
  • Forward planning: the year’s schedule, agenda of standing items + schedule

Registration: 09:00
Start: 09:30
Close: 17:00

Lunch will be served and there will be two 15 minute breaks (mid-morning, mid-afternoon).

* Please note that the programme sequence and/or subject matter may differ from what is presented herein; the programme is constantly being updated to embrace new ideas and developments – as they evolve.

Trainers use a blend of presentational methods in order to assist in a delegate’s understanding of the workshop content; where applicable and possible, the workshop is enhanced through the use of group exercises, role play, and case studies.

Professor Moorad Choudhry

Professor Moorad Choudhry is the former Chief Executive Officer of Habib Bank Zurich plc in London and currently Visiting Professor at Kent University Business School. He is Founder of The Certificate of Bank Treasury Risk Management (BTRM).

 

Prior to joining Habib Bank, Moorad was Head of Treasury at RBS Corporate Banking, Head of Treasury at Europe Arab Bank, Head of Treasury at KBC Financial Products and vice-president in structured finance services at JPMorgan Chase Bank. He is a Fellow of the Chartered Institute for Securities & Investment, a Fellow of IFS-University College and on the Board of Advisors of the Official Monetary and Financial Institutions Forum (OMFIF). He is on the editorial boards of Journal of Structured Finance, Qualitative Research in Financial Markets and American Securitization. He is author of The Principles of Banking (John Wiley & Sons 2012).

Take this training in-house

If you have five or more delegates who wish to attend this briefing, it may be more cost effective to run it in-company. To find out more about in-company training, please contact Philip Allen Director of Learning on 0207 216 8843 or philip.allen@bba.org.uk