Bridge The GAP Between Asset and Liabilities

Best Practices Results in The Management of Cash, Cast Forecasting and Market Capital Instruments to Mitigate

Liquidity / Cash Management

Managing Your  Company’s Liquidity Properly Will Improve The Competitiveness of The Company

Liquidity is about a company or institution’s cash money and its ability to meet obligations that are due on time. Liquidity Management, simply is a cash flow management solution for corporate finance that wants the funds available to be always managed optimally and efficiently.

Each company or institution will strive to make a profit, one of which is for the management of bank interest. In this case, Liquidity Management is often used by Companies that have sub companies or subsidiaries.

Liquidity Management will include control of currency maturity / mismatch and liquid asset management of corporation/institution. The Liquidity Management strategy at a bank will set limits on the mismatch (Gap) and the level of liquid assets which must be maintained to ensure that the bank will be able to meet its financial obligations, of course in various currencies  as many agreements with other parties.

Liquidity Risk Management

Liquidity Risk is The Most Important Risk to Mitigate for Banks

Basically, Liquidity Risk is the Risk of a Bank or Institution having no Cash or short-term assets that can be cashed out in sufficient quantities to satisfy the request of the depositor or debtor. The Risk usually occurs as a result of failure of management  between sources of funds and funding (mismatch) or lack of liquidity / funds (shortage) which resulted in banks/institutions unable to meet their financial obligations at a set of time.

If not carefully mitigated, the Liquidity Risk will cause the Bank or Institution in great difficulty. And that is not infrequently even the occurrence that banks has to stop operating due to fail to manage their Liquidity Risk properly.

Some incidents that could cause the bank to be in a state of difficulty due to being affected by Liquidity Risk are:

  • The required funds must be obtained at a very high cost or have to sell the asset at a very low discounted price
  • Mismatch Maturity between assets earning and funding
  • Wide spread time between short-term borrowing and long-term financing
  • Some of contracts that allow the customer to withdraw their funds at any time without notice (behavioral)


Nowadays, Liquidity Risk has become one of the main drivers of the current business crisis being faced by modern corporations as well as banks. This course will give an overview of the challenges and recommendations for Liquidity Risk management going forward, with the following outcomes:

  • Learn to Understand the Framework of Liquidity Risk Management
  • Learn how Liquidity Risk Affects the Industry (mostly Bank)
  • Learn to Understand the concept of Bank’s Liquidity Risk Management (SOP, Governance, Compliance etc)
  • Learn The Challenges of Building a Successful Framework of Liquidity Risk Management
  • Learn how to mitigate Liquidity Risk Properly
  • Learn how to Build Effective Liquidity Stress Testing and Contingency Planning
  • Learn how to utilize the Financial Model to measure the Liquidity Gap/Mismatch


  • Day 1:

* Introduction

* Liquidity Risk Management Framework— Mismatch Identification

* Liquidity Risk Management Framework—Mismatch Measurement

* Liquidity Risk Management Framework—Mismatch Monitoring

* Liquidity Risk Management Framework—Mismatch Control

  • Day 2:

* Liquidity Risk Management—Banking Practitioners Overview

* Liquidity Risk Management — Banking SOP

* Liquidity Risk Management —Banking Operational

* Liquidity Risk Management —Mapping across Industry

  • Day 3:

* Understanding Probability Distribution

* Case Study: Probability Distribution Simulation

* Value At Risk Method

* Surplus At Risk Method

  • Day 4:

* Understanding Conditional VAR

* Introduction to Option and Binomial Model

* Standard Option Valuation Using Black Scholes and Merton Model

* Case Study: Merton Model

  • Day 5:

* Workgroup Case Study: Applying Balance Sheet Approach

* Introduction to Multi Year Financial Projection

* Volatility Modeling And Stress Testing

* Case Study: Volatility Modeling And Stress Testing

  • Day 6:

* Mixed Model Customization

* Case Study: Mixed Model Customization

* Workshop Wrap Up / Summary


PT Rajawali Konsulindo (RJ Consulting) is a leading provider of Treasury and Risk Management, both classroom training and consulting services that already has considerable experience in the world of training and consultancy. RJ Consulting has regular classes organized regularly, such as:

  • Applied Financial and Project Model
  • Capital Market, Treasury Products and Instruments: Fixed Income and Derivative Products
  • Financial Projection and Analysis
  • Risk Management and Enterprise Risk Management

RJ Consulting is also an institution that holds several licenses to carry out the training on those certifications, such as:

  • Professional Financial Modeler (PFM)
  • Certified Risk Professional (CRP)
  • Chartered Family Office Services (CFOS)

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