Asset Liability Management (ALM) and Banking Risk Fundamentals

Banks operate in a highly volatile financial environment where managing the balance between assets and liabilities is critical to survival. Understanding how financial institutions mitigate risks while maintaining profitability is a foundational skill for anyone entering banking, corporate treasury, or corporate finance. This written course guides you through the core principles of Asset Liability Management (ALM), showing you how to analyze bank balance sheets, measure exposure to market fluctuations, and apply risk-mitigation strategies to ensure financial stability. What you'll learn: - Understand the foundational concepts of bank balance sheets, assets, and liabilities. - Analyze liquidity risk and the mechanisms banks use to maintain adequate funding. - Measure interest rate risk using gap analysis and duration gap models. - Apply modern regulatory standards, including basic Basel III liquidity coverage ratios. - Evaluate balance sheet management strategies to optimize risk and return. The journey begins with essential banking terminology and structural definitions before moving into practical risk-measurement methodologies. You will then explore real-world scenarios and strategic decision-making frameworks used by modern treasury departments. This course is designed for beginners, finance students, and aspiring risk analysts who want to build a solid foundation in banking risk management without needing prior experience. Start reading today to master the core mechanics of banking stability and financial risk control.