• Identify the elements of an effective ALM process
• Evaluate the balance sheet’s cash flow
• Assess both the earnings and economic value impact of rate changes
• Examine ALCO policies, structure, meetings and tools
• Establish appropriate reporting systems and maintain comprehensive internal controls

Wednesday, August 25, 2010
8:00 AM – 8:30 AM Registration & Continental Breakfast
8:30 AM – 4:30 PM Workshop

Interest Rate Risk (IRR) Defined

• Defining IRR
• Types of IRR
• Gap risk (maturity mismatch)
• Options risk
• Basis risk
• Effect on liquidity

Risk Management Process

• Active board and senior management oversight
• Adequate risk management policies and limits
• Appropriate risk measurement and reporting systems
• Comprehensive internal controls

Measurement of IRR

• Gap analysis
• Constructing a gap schedule
• Measuring risk with a gap schedule
• Attempts to address shortcomings
• Income simulation
• How to construct income simulation
• How to assess risk with simulation
• Other issues with income simulations
• Simulation limits
• Market value analysis
• Importance of using market value risk measures
• How rate changes affect market values
• Duration as a measure of price sensitivity
• Interest rate risk
• Convexity
• Using market value models to measure interest rate risk

Measuring IRR Key Risk Measurement Issues

• Embedded options
• Option background
• Key factors for valuation
• How does our IRR model value options?
• Mortgage options
• Mortgage prepayment option
• Factors that affect prepayment option exercise
• What is different about prepayment options?
• Nonmaturity Deposit Valuations
• Importance of deposits in measurement systems
• Options embedded in deposits
• Rate-setting dynamics
• Maturity dynamics
• Treatment of deposits in risk measurement systems

Thursday, August 26, 2010
8:00 - 8:30 a.m. Registration & Continental Breakfast
8:30 a.m. — 3:00 p.m. Seminar

Strategies to Reduce Risk and Improve Performance

• Balance-sheet optimization
• How to evaluate the risk/return tradeoffs
• Costs of hedging
• Matching strategies to sources of risk
• Optimize balance sheet with core business strategies
• Optimize balance sheet with discretionary business strategies

Various Case Studies will be presented throughout the seminar 

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: None
• 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 asset/liability management at a bank, thrift or credit union, including:

• CFOs and CEOs
• Controllers and Accountants
• Analysts and Investment Managers
• Treasurers
• ALCO Committee Members

DoubleTree Hotel Nashville
315 4th Avenue North
Nashville, TN 37219

Reservations: 800-222-8733
Special room rate: $119 single/double
Deadline for rate: August 2, 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.

Airport Transportation:
Transportation between Nashville International Airport and downtown hotels is provided by Grayline Airport Express. The current cost of this service is $12 one-way and $18 round-trip.

Reservations for individual travelers are not necessary. The shuttle departs approximately every half-hour from the airport. Please note that Grayline offers special group round-trip discounted rates for groups having fifty or more attendees utilizing this service.

Parking:
For the convenience of your guests, the Doubletree Hotel Nashville offers valet parking with in/out privileges for $24.00 per day, plus tax.

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 11, 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.

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

Mr. Updegraff ’s extensive experience in the financial services industry includes previous roles at both the NCUA and the FDIC where Joel was involved in intra and inter-agency policy, procedure and guidance initiatives including the development of the “S” Component rating and the FDIC’s first “risk-based” examination approach for interest rate risk. Prior to his current role, Joel directed nationwide business development for other A/L modeling services while providing related consultative services to financial institutions. Joel also served as the VP of Risk Assessment for a $4 billion wholesale financial institution.

As Vice President of Strategies within Fixed Income Research at SunTrust Robinson Humphrey, Mike’s responsibilities include working with a team of Senior Analysts and Analysts, focusing on the development and implementation of investment portfolio strategies and asset / liability management services for institutional customers. Throughout his career, Mike has been actively involved with traditional depository institutions. Prior to joining SunTrust Robinson Humphrey, Mike served as a Senior Analyst and Vice President at FTN Financial, where he was responsible for the delivery of over 100 asset / liability management reports. Mike also consulted several full-service clients regarding their asset / liability needs.