Objectives On completion of this tutorial, you will be able to:

• Identify the tools and techniques used to assess liquidity risk
• Identify the tools and techniques used to assess interest rate risk
• Recognize how both liquidity and interest rate risk can be managed

Tutorial Overview This tutorial provides an introduction to some of the tools and techniques used to manage liquidity and interest rate risk. We start by identifying the tools and techniques for assessing liquidity risk, including liquidity gap analysis, liquid asset concentrations, contingency funding plans, stress testing, and liquidity ratios. We then move on to looking at the tools and techniques used to report and manage interest rate risk, including gap analysis, gap limits, duration, earnings at risk, matching, and hedging. Finally, we look at aspects that affect both liquidity and interest rate risk management, including the use of intragroup funding and funds transfer pricing. Prerequisite Knowledge ALM - Strategic ALM Tutorial Level: Intermediate Tutorial Duration: 75 minutes