Learn how top-performing institutions get the most out of their asset/liability management process and gain tools for success during this information-packed seminar. You’ll gain valuable insight into what it takes to develop an effective modeling process, define accurate and unique assumptions and characteristics within your ALM/IRR model, and produce effective results from which management can incorporate into strategic action at your ALCO.

This two-day program will walk through the modeling process step-by-step and discuss the roles that models play in exposure identification and analysis. You’ll examine some of the most common modeling mistakes made and review straightforward processes and controls that can help to minimize model risk.

In addition to learning how to avoid common ALM/IRR model mistakes, you’ll also gain tips that will help you prepare for your next exam. Insight from recent exams will be shared and the key areas of examiner focus will be covered in detail. You’ll discuss increased regulatory expectations and industry best practices and discover how you can best meet and exceed them.

Best practices in ALCO reporting will also be discussed. You’ll improve the way you report your modeling results and learn how to test and prove output accuracy, which will increase confidence in those results so that ALCO can focus on proactive – rather than reactive - decisions.

Given today’s complex and volatile market, the importance of making the right decision at the right time is more important than ever. This program will culminate in a discussion of specific opportunities in the market today and will include strategies that you can apply at your institution to increase income while managing or mitigating risk.

Free Webinar Access
ALM Model Basics
All registered attendees will receive free access to the FMS ALM Model Basics webinar. View this previously recorded webinar at your convenience as advanced preparation for this seminar. A link to view the webinar will be included in your confirmation email.

Auditing and Validating Asset Liability Management Models
by Deborah Donaldson
Extend your seminar experience and expand your professional development library by purchasing this excellent resource on auditing and validating asset/liability management models at a community financial institution. As a seminar attendee, you can order this newly released publication at a highly discounted price. Given today’s complex, volatile market and resulting regulatory emphasis risk management, accurate performance and proper validation of interest rate risk models is critical. Whether performed by internal staff or outsourced to a third party, this book will help you:

Purchase Auditing and Validating ALM Models now and save!
FMS Member:$165 Now $99 — save $66!
Nonmember:$210 Now $129 — save $81!
You will receive your discounted publication at the seminar.

• Prepare for heightened interest rate risk and improve your ALM modeling and ALCO process
• Define EVE and NII IRR: What are they? What do they measure? How do they measure it? What do you do with the results?
• Discuss the inputs, data, assumptions, and requirements of an ALM model and the process needed to keep it working
• Learn how model math works, what to ask for from the vendor, and how to test it
• Uncover the top 10 modeling mistakes and learn how to avoid them
• Examine regulator expectations and gain insight into recent exams, key areas of focus and discover how you can be best prepared
• Learn what it takes to become a high performing ALCO and gain insight into how ALCOs fail
• Learn how to integrate your modeling process into overall institutional goals

Wednesday, August 18, 2010

8:00 AM – 8:30 AM Registration & Continental Breakfast
8:30 AM – 4:30 PM Workshop

ALM Model Basics

• Components of an effective ALM Model
• The modeling process: What an effective process requires

Models and Model Governance

• Definition of models
• Model governance and controls
• Regulatory guidance on model governance

How Models Measure Interest Rate Risk

• Overview of asset/liability management
• Income simulation models
• Economic value models

ALM Model Policies

• Developing effective policies
• What information to include
• Best practices in ongoing policy development
• Model Validation policies

Establishing Risk Limits

• Developing and defining limits
• What’s appropriate for your institution
• Maintaining control while retaining flexibility

Model Validation Process

• Written procedures and controls
• Model inputs (current position data, rates, prepayment, etc)
• Key assumptions, assumption sources and support
• Non-maturity deposits
• Processing components
• Model math and change control

ALCO Reporting

• Model outputs and reports (most effective way to present results)
• Presenting model results
• Increasing ALCO’s confidence to make proactive decisions
• Validating model results

Thursday, August 19, 2010

8:00 - 8:30 a.m. Continental Breakfast
8:30 a.m. — 3:00 p.m. Seminar

Backtesting

ALM Modeling Trends and Issues

• Advancements in ALM modeling
• Pros and cons of complex modeling

ALM Modeling “Dos and Don’ts”

• Best practices in model-risk management
• Managing “model risk” - an important ingredient of an effective ALM process
• The top 10 modeling mistakes and how to avoid them

Regulatory Expectations and Exams

• Increase in examiners’ expectations
• Preparing for your next exam
• Insight from recent exams
• Key areas of focus

Implementation Considerations for Audits and Validations

• Internal vs. external
• Outsourcing your audits and validations

Top Performing ALCOs

• Common characteristics
• Pitfalls to avoid

Balance Sheet Strategies

• Developing strategies for the current environment
• Presenting strategies at ALCO
• Current market opportunities
  

FMS 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: None
• Advance preparation: ALM Model Basics Webinar (included in registration fees)
• Field of Study: Up to 14 hours in the field of Finance
• Instructional Method: Live-Group

For more information regarding administrative policies such as complaints or refunds, call 800-ASK-4FMS (800-275-4367).

Anyone responsible for the asset/liability management function at a community financial institution including:

• CEOs, CFOs and COOs
• Controllers and Comptrollers
• Asset/Liability Managers
• Accountants
• Analysts and Investment Managers
• Internal and External Auditors
• Treasurers
• ALCO Members

Hotel Sax Chicago
333 North Dearborn Street
Chicago, IL 60654

Reservations: (877) 569-3742

Special room rate: $169 single/double
Deadline for rate: July 26, 2010

You must identify yourself as part of the Financial Managers Society program to receive the preferred rate. Reservations are limited to availability, so book early to ensure your savings.

Ground travel
Please visit the hotel website for detailed maps and directions. www.thompsonhotels.com

Attire
Seminar attire is business-casual. Please bring a jacket or sweater as meeting rooms may be cool.

Refunds and Cancellations
A refund minus a $150.00 processing fee will be provided for cancellations received by FMS in writing by August 2, 2010. No refund can be given for cancellations received after that date; however, a substitution from your company is welcome. FMS reserves the right to change instructors or reschedule/cancel sessions when necessary. FMS is not responsible for airfare penalties that may be incurred due to the cancellation of FMS programs.

Save $100 with a Members-Only Team Discount!
FMS Members and their coworkers save $100 per person when they register two or more employees. Simply complete one form per person and deduct $100 from the fee.

Not an FMS Member? Join now and save with the team discount today!

Deborah is a nationally known speaker and educator with more than 21 years of industry experience. She is the author of the Financial Managers Society's 2nd edition Internal Auditors' Desk Reference Guide and their Auditing and Validating Asset/Liability Management Models publication. She is also a member of the Institute of Internal Auditors and currently serves on the FMS Board of Directors and is an editorial advisor and frequent contributor to the Internal Audit Alert.

Michael possesses over 20 years of experience in asset/liability management and is a frequent author and speaker on a variety of balance sheet management topics. At DCG, Michael provides both technical and strategic consulting to a diverse group of financial institutions in the U.S. and abroad.