Comprehensive IRR From Three Perspectives

Comprehensive IRR From Three Perspectives

August 10-11, 2020 | Nashville, TN

Comprehensive IRR from Three Perspectives: Management, Modeler and Auditor

Program Description

Managing the asset/liability process, modeling for interest rate risk, and auditing model inputs and outputs are some of the most heavily scrutinized areas financial managers face at their institutions today. Knowing how to define accurate and institution-specific assumptions and category characteristics for your Interest Rate Risk reporting is vital.

FMS has the answers. Our upcoming seminar, Comprehensive IRR from Three Perspectives: Management, Modeler, and Auditor will help you define effective ALM and IRR policies, accurately populate the model, understand the assumptions (and see the consequences of bad assumptions), define rate scenarios, perform EVE/NEV IRR simulations that will provide management with valuable information, and prepare your institution for regulatory scrutiny.

Attendees are encouraged to bring their policy(s), ALM/IRR results and/or ALCO packages so that throughout the seminar, they can apply the practices presented throughout the seminar to their individual sets of inputs, assumption and outputs. Throughout this interactive program, Deborah will work hands-on with you and your own institution’s data.

Perfectly suited for anyone responsible for the ALM and IRR processes within your institution, this two-day program will cover:
  • Regulatory requirements for model audits and validations
  • Review of the biggest IRR modeling mistakes and how to avoid them
  • Evaluation of the inputs data, assumptions, and requirements of an effective ALM modeling process
  • How liquidity and contingency funding dovetails with IRR
  • Production of accurate outputs
  • The characteristics of effective ALCO reporting and the incorporation of IRR results into the overall asset/liability management function
  • Back-testing
  • Stress testing and trend analyses
  • A hands-on case study that gives attendees a chance to walk through the inputs, assumptions, and outputs in detail, transitioning the “theoretical” into the “practical”

Who Should Attend

This course is designed for those responsible or accountable for the modeling function or auditing within their institution.

Job Functions Include: CEO, CFO, Treasurer, Investment Officer, Analyst, ALCO and Board of Directors


August 10, 2020

7:30 AM – 8:00 AM
Buffet Breakfast

8:00 AM - 4:00 PM
Models and Model Governance
  • Model governance and controls
  • Regulatory guidance on model governance
ALM Model Basics
  • Components of an effective ALM/IRR model
  • Software expectations
  • Model population
  • Data & Assumptions
  • Rate Scenarios: Shocks, Ramps, Yield Curves
How Models Measure Interest Rate Risk
  • Overview of asset/liability management
  • Income simulation models (NII IRR)
  • Economic value models (EVE/NEV IRR)
Establishing Risk Limits
  • Developing and defining appropriate risk/exposure limits
  • Maintaining control while retaining flexibility
ALM Model Policies
  • Developing effective policies
  • Best practices un ongoing policy development
  • Model validation policies
ALCO Reporting
  • Model outputs and reports (most effective way to present results)
  • Validating model results
Case Study

August 11, 2020

7:30 AM – 8:00 AM
Buffetl Breakfast

8:00 AM - 12:30 PM
Stress Testing

Historical Back-Testing and Trend Analysis

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

*Schedule is subject to change


Deborah Donaldson
President and CEO Alpha-Numeric Consulting, LLC

Prior to starting her own company 14 years ago, Deborah Donaldson worked for MPS and IPS-Sendero (Fiserv). As President and CEO of Alpha-Numeric Consulting, Deb is responsible for model certifications and validations for a variety of domestic and international simulation models. She has specialized knowledge and technical skills backed by more than 32 years of experience in banking, financial applications, software models, and consulting services with an emphasis on asset-liability management, internal audit, liquidity, profitability analysis and risk management. Deb is a former member of the FMS Board of Directors, past Chair and current member of the FMS Internal Audit/Risk Management Council, national speaker, frequent contributor to industry newsletters and magazines, BALM contributor, Georgia Bankers Association member, and Editorial Advisor for the Internal Audit Alert newsletter. She has published both fiction and nonfiction, including the 2nd edition of the Internal Audit Desk Reference, as well as Auditing and Validating Asset/Liability Management Models publications for FMS.

Location and Accommodations

Loews Vanderbilt Hotel
2100 West End Ave.
Nashville, TN 37203

Special FMS Room Rate: $249/night
Deadline for Room Rate: July 20, 2020
Reservation Line: 1-800-336-3335
Please refer to the "FMS August Seminar 2020 Block" when calling the reservation line

Reserve Accommodations

 Credit Hours

Earn up to 12 hours of CPE credit.
  • Level: Basic to Intermediate
  • Prerequisites: None
  • Advance preparation: None
  • Field of Study: Finance
  • Instructional Method: Live-Group

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

Refunds and Cancellations

A refund minus a $250 processing fee will be provided for cancellations received by FMS in writing four weeks prior to the program start date. No refunds will be given for cancellations received after that date. A substitution from your institution is welcome at any time. FMS reserves the right to change instructors or reschedule/cancel sessions when necessary. FMS is not responsible for airfare penalties incurred due to the cancellation of the program. For more information regarding refunds, concerns, and/or program cancellation policies, please contact our offices at (312) 578-1300.

Registration Fee

Members and Non-members sign in or create an account below to register

FMS Members:                              $1,195
Staff/Co-Worker of Member:        $1,395
Non-members:                              $1,795

8/10/2020 - 8/11/2020
Loews Vanderbilt Hotel
2100 West End Ave.
Nashville, TN 37203 United States

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