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Description

Liquidity Risk: Measuring Gaps, Building Stress Scenarios and Steering the Position

An institution that looks solvent on paper yet cannot absorb a rapid outflow of its deposits

  • 1 day — 7 h
  • In-person or virtual
  • Expert
  • Up to 6 participants

Liquidity risk does not build up gradually. An institution may display comfortable ratios and find itself under severe pressure within days if deposits leave faster than expected or if a funding market closes. Run-off models then rest on behavioural assumptions that no one has reviewed for a long time.

This one-day programme is designed for asset and liability management and risk control practitioners: building liquidity gaps, justifying run-off assumptions, assessing the liquidity buffer and funding capacity, designing stress scenarios and drafting a contingency plan. All exercises are based on simplified balance sheets.

Learning objectives

  • Build static and dynamic liquidity gaps from a balance sheet
  • Justify run-off assumptions for deposits and off-balance-sheet commitments
  • Assess the quality and genuine availability of the liquidity buffer
  • Design idiosyncratic and market-wide stress scenarios for the institution
  • Define early warning indicators and their trigger levels
  • Structure a liquidity contingency plan and its activation conditions

What makes this programme different

Liquidity gaps are built manually on a simplified balance sheet before any tool is used
Run-off assumptions are challenged through a structured counter-review exercise
A liquidity contingency plan drafted down to activation decisions and their owners

Programme

1Measuring the Liquidity Position

Seeing where the balance sheet distorts

  • Static and dynamic gaps by maturity bucket
  • Run-off profiles for demand deposits and savings
  • Treatment of off-balance-sheet commitments and collateral
  • Consistency between internal measures and regulatory liquidity indicators such as LCR and NSFR

2Assumptions and the Liquidity Buffer

What holds when the market closes

  • Behavioural assumptions and calibration on historical data
  • Eligible assets
  • haircuts and monetisation lead times
  • Funding sources and counterparty concentration
  • Cost of liquidity and internal funds transfer pricing

3Stress Testing and the Crisis Framework

Preparing the decision before the pressure hits

  • Idiosyncratic
  • market-wide and combined scenarios
  • Survival horizon and interpretation of results
  • Early warning indicators and the related governance
  • Contingency plan
  • roles and activation decisions

Who is it for

ALM managers · treasurers · risk controllers · internal auditors · banking back and middle office managers.

Prerequisites

Ability to read a bank balance sheet and familiarity with funding mechanisms.

Dates & locations

24 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.