By the end of this training course, trainees will be able to: -      Differentiate between sources of liquidity risk and describe specific challenges faced by different types of financial institutions in managing liquidity risk. -      Identify liquidity funding risk, funding sources, and lessons learned from real cases: Northern Rock and Lehmans. -      Calculate a bank’s liquidity needs through three methods (sources and uses of funds, structure of funds, and liquidity indicators). -      Interpret the term structure of expected cash flows and cumulative cash flows. -      Evaluate Basel III liquidity risk ratios. -      Identify and explain the uses and sources of intraday liquidity. -      Discuss liquidity stress test design issues such as scope, scenario development, assumptions, outputs and governance. -      Identify the importance of maintaining a cushion of unencumbered, high quality liquid assets. -      Identify the principles of collateral management. -      Evaluate the key design considerations of a sound contingency funding plan. -      Identify the importance of establishing a liquidity risk tolerance. -      Describe the necessity of allocating liquidity costs, benefits and risks to all significant business activities.