Workshop Content

Session 1: Understanding the bank’s Balance Sheet from the Board perspective 

• The balance sheet as the primary driver of resilience, profitability and shareholder value
• The Risk Appetite Statement as the strategic framework for balance sheet management
• Governance architecture: Board, ALCO, Treasury, Risk and Finance
• The Governance Matrix: roles, responsibilities and decision rights

Session 2: Assessing balance sheet risk exposure: Capital, Liquidity and Regulation 

• Liquidity management challenges
• Strategic capital planning, management and optimisation
• ICAAP and ILAAP as proactive executive management frameworks, not just regulatory compliance
• Recent regulatory reforms and their implications on strategic balance sheet and profitability
• The ALCO MI pack: what questions to ask
• The Board MI Pack 1-page risk dashboard: what it should be telling you

Session 3: Understanding and directing balance sheet performance 

• Strategic performance metrics: setting target ROE, determining reasonable estimates for cost of capital, and steering Net Interest Income (NII) and Net Interest Margin (NIM), aligning business incentives via FTP frameworks
• Business line viability evaluation deploying RAROC and RORWA
• Managing strategic trade-offs across liquidity, capital, profitability and risk appetite

Session 4: Understand, review and challenge the stress testing framework 

• Board-Level Stress Testing: what to know when approving the design and process of stress testing and reverse stress test scenarios
• Holistic recovery framework: critical functions, early warning indicators and core recovery triggers, defining recovery options portfolio
• Crisis management: the boardroom playbook for rapid decision-making and market stabilisation
• Crisis-ready banking: implementing your 13-point “crisis ready” checklist

Session 5: Strategic Balance Sheet Transformation 

• Balance Sheet due diligence: assessing a bank’s hidden risks (embedded IRRBB mismatches, “Pillar 2” liquidity concentration, non-performing assets, and reg capital compliance)
• M&A transaction viability: including goodwill capital implications and merged balance sheet constraints
• AI in ALM: limitations and opportunities – strategic forecasting, early-warning capabilities, and effective implementation for Board meeting efficiency