FRM Part 2 - Book 4 - Liquidity and Treasury Risk Measurement and Management

Master liquidity and treasury risk measurement and management through this comprehensive video course series designed for FRM Part 2 candidates. Explore fundamental concepts of liquidity risk identification, measurement techniques, and management strategies, including the application of liquidity-adjusted Value at Risk (LVaR). Examine Basel III liquidity ratios such as the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) and understand their critical implications for financial institutions. Study the relationship between liquidity and leverage, and learn effective strategies for liquidity and reserves management. Delve into specialized areas including intraday liquidity risk management, liquidity stress testing methodologies, and the management of nondeposit liabilities. Analyze the failure mechanics of dealer banks and understand repurchase agreements and financing structures. Investigate real-world challenges such as the US dollar shortage in global banking and international policy responses. Master asset-liability management techniques and duration-based approaches for managing interest rate risk. Explore the complexities of illiquid assets and their impact on risk management frameworks. Apply principles of sound liquidity risk management as outlined by the Bank for International Settlements (BIS) through practical case studies that illustrate real-world challenges and solutions in the financial sector.