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Farin Financial Risk Management offers a variety of webinars and training programs. Stay current on industry issues, learn to anticipate and plan for market shifts and get hands-on, comprehensive training on Farin software.

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The Role of your Core Deposit Study in your ALCO and Funding Plans

May 30, 2018 — 1:00PM — 2:40PM CST

Cost: $295.00

Advancing your ALCO, Moving from Regulatory to Decision Making

June 20 & 27, 2018, 2018 — 1:00PM — 2:40PM CST

Cost: $500.00

Liquidity Risk Basics

April 25, 2018 — 1:00PM — 2:40PM CST

Cost: $295.00

+ Beginners Guide

The Role of your Core Deposit Study in your ALCO and Funding Plans

May 30, 2018 — 1:00PM — 2:40PM CST

Cost: $295.00

+ Breakthrough Strategies

Advancing your ALCO, Moving from Regulatory to Decision Making

June 20 & 27, 2018, 2018 — 1:00PM — 2:40PM CST

Cost: $500.00

+ Basics of Liquidity

Liquidity Risk Basics

April 25, 2018 — 1:00PM — 2:40PM CST

Cost: $295.00

Overview

The most critical assumptions impacting risk remain those regarding the treatment of non-maturity deposits. Many institutions rely on older, less effective methods for assessment, or default regulatory views such as OTS published decay rates or the recently adopted approach by NCUA, understanding that the true performance is not the same. How well then do reports around interest rate and liquidity risk really reflect the true concerns and plans of your institution?

After studying hundreds of financial institution’s non-maturity deposits, we know that within an individual institution, differences exist in depositor behaviors within single account and should be expected based on many different factors. Using regulatory measures leads us down a path to ineffective decision making and sub-optimal performance.

In this 1-part session we will review the most common approaches to studying non-maturity accounts, and how the variances impact risk results. We will outline how to run “sensitivity tests” to gain more confidence in each key assumption area and ensure that you focus on the issues with the greatest impact if wrong. Lastly, we will review how information from a quality core study should be used in interest rate and liquidity measurements, pricing decisions and strategy development and how continued improvements will over more benefits for many.

Given the increased concentration and growth in non-maturity accounts over the years, understanding potential behaviors and costs as market conditions change is crucial to managing net interest margin, liquidity levels and overall growth. Strategies for growing and\or retaining these funds requires a more detailed examination of the deposit makeup and trends than traditionally used for asset\liability management historically.

Learning Objectives

In this session, we explore how to get the maximum value from a comprehensive core deposit study that can help you to assess:

  • How to use core study outputs to build pools of funding for various asset classes
  • How factors such as depositor age and account “vintage” impact volatility
  • Why “effective duration” is more important that weighted average life or “duration” when building strategies
  • Why different segments exist within an account and how to handle them in changing markets
  • How to build liquidity plans for “surge” balances
  • How segmentation and blended funding can significantly lower the cost and risk

Dave Koch, President & CEO, Farin & Associates Inc.

Dave Koch is an industry lecturer and consultant for the financial institution industry. He has delivered educational programs for national and state industry trade groups, in addition to several Federal Home Loan Banks and Corporate Credit Unions. He serves on the faculty of the Graduate School of Banking at the University of Wisconsin and has served as faculty of the CUNA Management School in Madison WI. Since joining Farin in 1993, Mr. Koch has been a frequent speaker on asset/liability and interest rate risk management to financial executives across the country. In addition to the speaking roles, Mr. Koch consults with financial executives to help find creative solutions to their business challenges.

Learning Objectives

CPE Credit Hours Earn up to 2 CPE credit.

Farin & Associates is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.

Level: Basic to Intermediate

Prerequisites: Basic ALCO Foundations or equivalent knowledge of ALCO process

Advance preparation: None

Field of Study: Specialized Knowledge

Instructional Method: Group Internet Based

For more information regarding administrative policies such as complaints or refunds, call 800-236-3724.

Who Should Attend The target audience includes CFO’s, CCO’s, lending staff and other management wishing to gain a comprehensive picture of credit risk across their financial institution.

Fees Include: One phone and one internet connection for the live presentation. Handouts and other resource material for attendees. Unlimited access for your organization to the recording of the seminar presentation for 90 days after the conclusion of the program.

Contact Jackie Myers if you have questions or comments regarding Farin Financial Risk Management educational programming: jmyers@farin.com

Overview

Facing a new set of market risks like higher interest rates, changes in economic expectations, and a more competitive “banking” space, having an ALCO process that looks at institutional goals over regulatory compliance offers advantages. Despite recent regulatory pushing for a better internal ALCO process for managing risks, many institutions are still searching for the right balance between a comprehensive ALCO approach and the time\cost vs. benefit of more resources. Many understand that the past practices of managing risks in “silos” are no longer the “best practice” but how do we “do” all the things that seem to be required and make it make sense?

In this 2-part series we will introduce the basic concepts of asset\liability management as an on-going process versus a quarterly risk assessment. We will outline what a “dynamic” risk management system looks like and show how it be worked to include traditional required measures for interest rate risk & liquidity measurement while incorporating the elements of “stress testing” in a smart and useable way. We will outline the framework for ALCO that helps provide the platform for managing both the idea of risk vs. return as well as risk vs. risk. This same framework becomes the basis for a rolling planning process and a decision platform for changing conditions.

As markets move, our decisions need to move as well. Failing to assess the moves until after they are implemented is not in line with regulatory guidance expectations, nor is it good management practice. Like any athlete, consistent training and improvement ensures long-term success. Now is the time to begin put your ALCO process into training for the challenges ahead, allowing you to make more informed, profitable decisions in the coming years.

Learning Objectives

Participants will:

  • Present your ALCO plan in context with your strategic plan and financial goals.
  • Outline the difference between static and dynamic measurements
  • Build necessary stress tests for risk areas including: Sensitivity tests & Scenario tests
  • Outline how all ALCO risks come together using scenarios
  • Shape your monthly and quarterly reporting process around your institution’s risks and goals
  • Establish a framework to measure ALCO risks in relation to one another rather than independently
  • Outline basic policy limit framework for ALCO risks

David Koch, President & CEO, Farin & Associates Inc.

Dave Koch is an industry lecturer and consultant for the financial institution industry. He has delivered educational programs for national and state industry trade groups, in addition to several Federal Home Loan Banks and Corporate Credit Unions. He serves on the faculty of the Graduate School of Banking at the University of Wisconsin and has served as faculty of the CUNA Management School in Madison WI. Since joining Farin in 1993, Mr. Koch has been a frequent speaker on asset/liability and interest rate risk management to financial executives across the country. In addition to the speaking roles, Mr. Koch consults with financial executives to help find creative solutions to their business challenges.

CPE Credit Hours: Earn up to 4 CPE credits.

Farin & Associates is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.

Level: Basic to Intermediate

Prerequisites: Basic ALCO Foundations or equivalent knowledge of ALCO process

Advance preparation: None

Field of Study: Specialized Knowledge

Instructional Method: Group Internet Based

For more information regarding administrative policies such as complaints or refunds, call 800-236-3724.

Who Should Attend

This session is intended for individuals with a basic understanding of the income at risk measurement process but looking for more in-depth understanding of the changing measurements and required assumptions.

This includes:
ALCO Members, CFO’s, Controllers, CEO’s and those wanting a better understanding of new Regulatory requirements on Interest Rate Risk

Contact Jackie Myers if you have questions or comments regarding Farin Financial Risk Management educational programming: jmyers@farin.com

Overview

Liquidity – The ability to meet cash needs of today and the future at a reasonable cost!

As interest rates are rising and loan volume strengthens, Liquidity risk is once again front and center in the eyes of the regulators. And with good reason!  How strong is your process for measuring and managing your liquidity needs?  How is your liquidity plan different from plans for funding the institution?  Have you developed and tested the proper contingency plans in the event of a crisis?

During the past 8 years, liquidity was a concern, but was often overlooked given the strong levels within the industry.  However, processes that were considered acceptable are now coming under scrutiny, and you need to be prepared to show your liquidity risk management process under control!

This 1-part session we will cover the basics of liquidity measurement and management.  We will look at various measures of liquidity and how the fit into the framework of regulatory expectations and institutional use.  We will explore the concept of “contingency plans” and address the items that should be included in your plan.

What is the current regulatory expectation for your liquidity process?  Are you prepared to show examiners that your system covers all the required concerns and you are prepared to handle a variety of potentially stressful liquidity events?

 

Learning Objectives

Participants will cover the following areas of liquidity risk measurement taking away usable calculations and approaches to apply in their financial institution:

  • A functional definition of liquidity
  • Understand the difference in Asset Based Liquidity vs. Total Liquidity
  • Outline major causes of Liquidity risk in financial institutions
  • Gain insight into how liquidity fits in to the ALM framework
  • Review current regulatory approach and guidance
  • Outline how to build common regulatory measurements for liquidity including
    • Asset based liquidity ratios
    • Cash flow based measures
    • Common “trigger ratios” for monitoring changes
  • Review ideas on setting acceptable policy limits for your institution
  • Discuss the need for various levels of contingency plans for your institution

David Koch, President & CEO, Farin & Associates Inc.

Dave Koch is an industry lecturer and consultant for the financial institution industry. He has delivered educational programs for national and state industry trade groups, in addition to several Federal Home Loan Banks and Corporate Credit Unions. He serves on the faculty of the Graduate School of Banking at the University of Wisconsin and has served as faculty of the CUNA Management School in Madison WI. Since joining Farin in 1993, Mr. Koch has been a frequent speaker on asset/liability and interest rate risk management to financial executives across the country. In addition to the speaking roles, Mr. Koch consults with financial executives to help find creative solutions to their business challenges.

CPE Credit Hours Earn up to 2 CPE credits.

Farin & Associates is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.

Level: Basic

Prerequisites: A basic understanding of the Asset/Liability Management process in financial institutions (ALCO Fundamentals), capital planning in financial institutions, financial performance analysis basics

Advance preparation: None

Field of Study: Specialized Knowledge

Instructional Method: Group Internet Based

For more information regarding administrative policies such as complaints or refunds, call 800-236-3724.

Who Should Attend ALCO Members, CFO’s, Accounting/Finance Employees, CEO’s

Fees Include: One phone and one internet connection for the live presentation. Handouts and other resource material for attendees. Unlimited access for your organization to the recording of the seminar presentation for 90 days after the conclusion of the program.

Contact Jackie Myers if you have questions or comments regarding Farin Financial Risk Management educational programming: jmyers@farin.com

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GAIN PERSPECTIVE – PURCHASE TARGETED ON DEMAND WEBINARS

ALCO Fundamentals –
1 Part Webinar

As regulatory expectations change, it is critical that ALCOs adapt their approach to managing institution returns and risks. Are you comfortable balancing your institution’s often competing financial goals?

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ON DEMAND

Enterprise Risk and the ALCO Process – 2 Part Webinar

Learn about stress testing various kinds of risk, integrated or enterprise stress testing. Discuss the convergence of dynamics modeling and the ALCO process. Build useful scenario analysis and stress tests and much, much more.

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ON DEMAND

Core Deposit Analytics –
2 Part Webinar

Regulators are placing increased pressure on institutions to develop and use institution specific assumptions. Master the theory behind these assumptions to better manage your institution and to successfully respond to regulatory queries.

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ON DEMAND

Contact Jackie Myers if you have questions or comments regarding Farin Financial Risk Management educational programming: jmyers@farin.com