World Business StrategiesServing the Global Financial Community since 2000

STAGE 1

Pre-course module: Banking primer

The BTRM programme begins with the single lecture banking primer, covering all the core principles of bank balance sheet risk management.

1. The primer has been designed to ensure all students start the course with the necessary entry-level understanding of bank ALM and the role of the Treasury function.

Module One: Bank balance sheet risk management

We introduce the key tenets of bank ALM and proceed to delve in depth into the tools, techniques and principles available that students must be familiar with if they are to manage ALM strategy for their bank. We assess and analyse key risk and performance metrics including NII/NIM, and also present best-practice principles of interest-rate and FX hedging.

2. Asset-Liability Management II: banking products, interest rate benchmarks, FX hedging and NII/NIM management.

3. Asset-Liability Management I: strategic ALM and balance sheet management.

4. Basel III capital and liquidity rules.

5. ALM trading and hedging principles I: Money markets. Fundamental Review of the Trading Book (FRTB).

6. ALM trading and hedging II: Banking Book interest-rate risk management. Credit spread risk in the Banking Book.

Online multiple-choice test to obtain Award in this module.

Module Two: Bank ALM operating model and risk management governance

An essential ingredient in sound ALM structure is the effectiveness and efficiency of the Treasury operating model. This module presents business best-practice recommendations for the target operating model and the management and operation of the bank’s asset-liability committee (ALCO).

7. Treasury Target Operating Model and reporting line.

8. Asset-Liability Management III: The ALCO ToR / charter; ALCO sub-committee structure. ALM Simulation game.

9. ALCO and credit risk management; loan loss provision policy. Integrating ALM, Liquidity and Credit into ERM stress testing.

Online multiple-choice test to obtain Award in this module.

Module Three: Strategic ALM and financial markets

Module Three reviews in depth the operation of the bank within the wider capital and financial markets. We review market instruments, the use and application of securitisation for balance sheet management and wider stakeholder concerns including how a bank should undertake its recovery and resolution planning. We also run through the process of obtaining a formal credit rating.

10. Capital markets for bank issuers (AT1, T2, Secured, Unsecured). Post-crash swap discounting and pricing principles.

11. Securitisation: mechanics for balance sheet management.

12. Recovery and Resolution Planning.

13. Investor relations and the credit rating process.

Online multiple-choice test to obtain Award in this module.

STAGE 2

Module Four: Bank liquidity risk management

Module four is perhaps the most arcane and technical, and yet easily up there with the most important, of all the BTRM modules. It covers all aspects of liquidity risk management and how this vital function should be carried out in order to ensure continuous through-the-cycle survivability. Related topics such as yield curve construction and stress testing, an essential part of the Basel III regulatory regime, are covered in depth.

14. Liquidity risk management I.

15. Liquidity risk management II: Risk metrics and limits; Post-crash swap discounting; LIBOR reform.

16. Liquidity risk management III: optimum liabilities strategy and managing the liquidity (HQLA) buffer; XVAs: CVA, DVA, FVA, MVA.

17. Internal funds transfer pricing (“FTP”) and funding policies. FTP in frontier markets.

18. Constructing the bank internal funding curve.

19. Liquidity reporting, stress testing and ILAAP. Intra-day liquidity risk. Asset encumbrance policy.

20. Collateral management: Bilateral Margin Rules and Central Clearing for OTC Derivatives. Impact of CCPs on ALM.

Online multiple-choice test to obtain Award in this module.

Module Five: Bank capital management

This module covers capital management, capital planning and capital strategy. The role of the CFO and Treasurer in this regard is examined in detail. We also present guidelines for the policy template process, where the student will learn about the latest developments in business best-practice and how these are brought to a particular committee such as ALCO.

21. Capital management I: capital structure and planning. The SREP process.

22. Capital management II: capital strategy. Reverse Stress Testing.

23. Regulatory reporting for liquidity and capital. Principles of Policy Documentation

Online multiple-choice test to obtain Award in this module.

Examination

Following three weeks allocated for revision, in Week 26 students will sit a formal 3-hour closed book written examination. The exam is held on the same day worldwide, in our London exam centre for UK-based students. All non-UK based students sit the exam at their own desktop, using the BTRM online examination and digital invigilator system. The exam is essay-based, and not a multiple-choice test.

The pass mark is 60%, with those achieving 80% being granted a pass with Distinction. The the highest-performing student in the Cohort is awarded the Wiley Prize.

Diploma Module

The Diploma is an optional stage of the BTRM following award of the Certificate. It consists of an 8,000-word student dissertation, the successful submission of which confers the designation Dip. BTRM. Students first submit their dissertation proposal and once approved the project will involve 300 hours of self-directed learning.

  • Teaching hours: 69 (23 weekly lectures x 3 hours)
  • Total learning hours: 301(including 232 hours self-directed learning)
  • Equivalent to 30 credits
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