This module provides participants insight in how institutional investors, such as pension funds and insurers, run their balance sheets. Balance sheet management encompasses optimizing multiple strategic objectives by managing the key balance sheet risks, such as interest rate, liquidity, inflation, funding and currency risks. After completing this module, you will be able to design and evaluate balance sheet management programs, as well as understand the most important financial instruments and strategies institutional investors use in their investment practice.
Balance sheet management requires a thorough understanding of the strategic objectives, constraints, the regulatory environment and future challenges of various types of institutional investors. Balance sheet objectives and risks are subsequently translated into a deeper understanding of the key risk exposures of these investors. Risks can be managed on either side of the balance sheet, with a dominant role for dynamic investment strategies and financial derivatives to alter the balance sheet’s risk profile. Participants get to test their knowledge by addressing realistic balance sheet management case studies.
- Getting to know various types of institutional investors, their regulatory environment, key objectives and risks
- Translating the key balance sheet risks into investment and risk management objectives
- The effectiveness of investment solutions, dynamic strategies and financial derivatives to manage the key balance sheet risks
- Real-life case studies for a number of different institutional investors
Separate modules RBA Program
More information about the other modules:
Module 1: Understanding clients and behaviors
Module 2: Regulatory dynamics and practical implications
Module 3: Advanced asset allocation
Module 5: The future of manager selection, monitoring, and evaluation
All available information that is also relevant and applicable to taking a separate module can be found on the page of the RBA program.