Asset Liability Management and Risk-BasedPricing for Islamic Financial Institutions
SIDC CPE - accredited: 10 CPE Points
About The Seminar
With the turmoil created in the wake of the global financial crisis, the implementation of a robust risk management discipline in financial institutions is now considered one of the most important needs of the moment. This course provides instruction in Asset Liability Management set within a context of some of the most important contemporary ALM issues facing Islamic financial institutions, and shares leading solution methodologies used to overcome well-known risk management challenges.
Going beyond ALM, but closely related to it, risk-based pricing of financial instruments ensures that stakeholders are sufficiently compensated for the risks to which they are exposed. Many of these risks are complex, and use sophisticated technologies to price them accurately. Nevertheless, this course explains their basis and provides a toolkit of methodologies which can be applied to price different types of risks inherent in the financial products and balance sheets of Islamic banks.
The course will include a high level of interactive discussion, analysis of case studies, and thorough instruction in techniques which can be applied by practitioners for their everyday financial management needs
KEY HIGHLIGHTS
- Identify, measure and manage risk at financial product and balance sheet levels with a focus on market and liquidity risks.
- Apply analytic methodologies for the risk-based pricing of Islamic banking assets.
WHERE & WHEN
Date: 9th April 2018
Venue: KUALA LUMPUR
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
Standard: RM1,999
Register before 9th March 2018
About The Seminar
With the turmoil created in the wake of the global financial crisis, the implementation of a robust risk management discipline in financial institutions is now considered one of the most important needs of the moment. This course provides instruction in Asset Liability Management set within a context of some of the most important contemporary ALM issues facing Islamic financial institutions, and shares leading solution methodologies used to overcome well-known risk management challenges.
Going beyond ALM, but closely related to it, risk-based pricing of financial instruments ensures that stakeholders are sufficiently compensated for the risks to which they are exposed. Many of these risks are complex, and use sophisticated technologies to price them accurately. Nevertheless, this course explains their basis and provides a toolkit of methodologies which can be applied to price different types of risks inherent in the financial products and balance sheets of Islamic banks.
The course will include a high level of interactive discussion, analysis of case studies, and thorough instruction in techniques which can be applied by practitioners for their everyday financial management needs
KEY HIGHLIGHTS
- Identify, measure and manage risk at financial product and balance sheet levels with a focus on market and liquidity risks.
- Apply analytic methodologies for the risk-based pricing of Islamic banking assets.
Standard: RM1,999
Register before 9th March 2018
Seminar Agenda
Part 1: ALM and Liquidity Risk Management
Overview of Financial Intermediation in Islamic Banks
- Balance sheet assets and funding sources of Islamic banks
- Sukuk and their tie back to the balance sheets of Islamic banks
- What are the main differences with conventional banks?
ALM in Islamic Banks
- What is ALM and why is it important?
- What are the main risks that ALM deals with?
- What is special about Islamic Banks that requires a good ALM discipline?
- How should Islamic Banking assets be funded?
Liquidity Risk Management in Islamic Banks
- Static liquidity gap analysis: method and shortcomings
- Dynamic liquidity gap analysis: simulation to quantify funding needs
- What can Islamic banks do to better manage their particular liquidity risks
- Basel III and liquidity ratios for Islamic banks
Part 2: Markup and Currency Risk Management
Markup Risk Management in Islamic Banks
- Markup risk measurement approaches
- Static re-pricing gap analysis
- Dynamic earnings-at-risk analysis
- Full simulation
- Markup risk management
- Setting an ALM objective
- Structural versus Hedging Solutions
- Managing markup risk and Displaced Commercial Risk in Profit Sharing Investment Accounts
Currency Risk Management in Islamic Banks
- How does currency risk arise in Islamic banks?
- How can it be managed simply without using hedging?
- Practical applications of ‘Islamic derivatives’ to manage currency risk
Part 3: Risk-based pricing
Risk-based pricing of Islamic financing receivables
- Markup risk measurement approachesWhy is the pricing receivables an issue for Islamic banks?
- What are the implications of not pricing receivables in a risk-sensitive way?
- What is the role of competition between Islamic banks when it comes to pricing?
- What are the components of pricing for Islamic financing receivables?
Case Study: Pricing cost of funds refinancing risk
Risk-based pricing of Sukuk
- Characteristics of Sukuk for our purpose
- How do practitioners currently price Sukuk?
- Why should Sukuk pricing be risk-based?
Case Study: Pricing credit risk in Sukuk Al-Ijara
SEMINAR SPEAKER
Dr Ken Baldwin
Former Director Financial Policies & Planning, Islamic Development Bank
Dr. Ken has worked as a practitioner in banking and finance for over 25 years in senior quantitative finance and risk management positions. Having graduated from Oxford University with a first-class honors degree in Physics, he qualified as a Chartered Accountant before joining UBS, and then later Credit Suisse, in derivatives risk and control functions based in London. He gained a PhD in the microeconomic theory of risk sharing in Islamic contracts, and worked in the GCC for 15 years in Islamic retail and Islamic investment banks. Dr. Ken built an ALM analytic technology platform for Abu Dhabi Islamic Bank, was MENA Regional Head of Quantitative Analysis for Citigroup, and has worked in quantitative risk management roles for both conventional and Islamic private equity and venture capital institutions. He most recently set up the Islamic Development Bank’s Financial Policies and Planning function, which provides risk and pricing analytic support at product and balance sheet levels. Dr. Ken is currently a senior university lecturer in finance in the UK, has published quantitative finance articles in peer-reviewed academic journals including the Journal of Risk, and taught CFA and FRM in his earlier career.
Contact us
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
For any inquiries contact us
Our team will be glad to answer any questions you may have about this seminar.