ASSET & LIABILITY MANAGEMENT SIMULATOR

GuardB@nk 3 Asset & Liability Management (ALM) Simulation Program

The optimization of the Balance Sheet of a bank is typically the responsibility of the ALCO. The GuardB@nk 3 Asset & Liability Management (ALM) Simulation Program has been designed as a practical tool to enhance the ability of practitioners to deal with the complexities involved in the management of the Balance Sheet of a bank. The simulation program provides a practical learning experience set in a realistic business and economic environment.

Enhance the ability of practitioners to deal with the complexities involved in the management of the Balance Sheet of a bank

ALM Practitioners, Treasurers, Risk Managers as well as personnel from Finance benefit from being exposed to making decisions in a highly competitive and volatile environment, whilst interacting with the simulator. Several scenarios are encountered, such as capital constraints, lack of liquidity, deteriorating business conditions as well as a changing regulatory environment. The latest financial data of a commercial bank can be entered into the model thus ensuring an environment as close to reality as possible.

APPLICABLE USES OF GUARDB@NK 3

GuardB@nk 3 is mostly used as part of a Balance Sheet Management or Asset & Liability Management Training Programme.

When used in combination with discussions and cases on key areas such as Capital Management, Liquidity Management and Interest Rate Risk Management the ALM simulator provides the powerful platform to allow participants to put in practice what had been discussed. Participants are typically exposed to several stress scenarios as well as volatile market conditions. Following below are some examples of where GuardB@nk 3 has been used:

ABN AMRO Bank

In order to create a common understanding and application of the bank’s ALM Framework and Policies, GuardB@nk 3 was used in several countries where the bank has operations. Focusing on local market and business conditions, the ALM simulator was used during a three-day training programme to enhance the skills and business acumen of local ALCOs and their ALM Departments, personnel in Treasury, Risk Managers and Finance.

Royal Bank of Scotland

GuardB@nk 3 was used as part of a programme with the specific objective of providing the Internal Audit Team responsible for Treasury and Finance with an enhanced understanding of Treasury Operations and the complexities in the management of the Capital and Liquidity of the bank. For these programmes the latest financial information of the bank was used each time. The ALM simulator provided personnel from Internal Audit with the opportunity to see and experience the several key areas of the bank from a practical point of view.

European Bank for Reconstruction and Development (EBRD)

GuardB@nk 3 was used as part of a programme with the specific objective of providing the Internal Audit Team responsible for Treasury and Finance with an enhanced understanding of Treasury Operations and the complexities in the management of the Capital and Liquidity of the bank. For these programmes the latest financial information of the bank was used each time. The ALM simulator provided personnel from Internal Audit with the opportunity to see and experience the several key areas of the bank from a practical point of view.

Online Asset & Liability Management Competitions

Since 2007 GuardB@nk 3 had been used as part of an international online Asset & Liability Management Competition for ALM practitioners. To date seven competitions have been concluded successfully. Banks from Africa, Asia, the Americas as well as Central and Eastern Europe take part in the online completion. The international ALM competition provides an excellent opportunity for participants to learn more within their own bank about the effective practicing of Asset & Liabilities Management (ALM), whilst the competition is ongoing. Participants are encouraged to consult expert practitioners within their bank and to ask for assistance when making decisions for their “Virtual Bank”. For the duration of three months, participants made decisions on a bi-weekly basis, running a bank for four financial quarters. The competition is facilitated via webinar by SimArch with quarterly feedback and a final debrief at the end of the competition. The top four competing teams (one per region) are selected to join each other live for a two-day on-site competition, which is rounded off by a presentation to a panel of bank executives, acting as members of a Supervisory Board. Upon evaluation of the teams, the Supervisory Board selected the ultimate winner of the Online ALM Competition. The competition provides participating banks with deeper insight into the ALM Process within their own bank and an excellent opportunity for the exchange of experience, ideas and networking among ALM practitioners internationally.

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Are you interested in the GuardB@nk 3 ALM Simulator? Download the full product description here.

TECHNICAL FEATURES

The GuardB@nk 3 ALM Simulator is available online on a 24/7 basis. The program is extremely flexibility and a maximum number of eight quarters per session can be run. The maximum number of banks that can partake in one session is 200. A unique feature of the program is that the latest financials of any commercial bank in a country can be used as a starting position during a specific training programme.

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FLEXIBLE DELIVERY OPTIONS

In addition to the above-mentioned technical features of GuardB@nk 3, the simulation also offers a wide range of delivery options. The following delivery options are possible:

Online

As an online self-study tool where participants compete against virtual banks and the simulation generates quarterly feedback based on their decisions

As an online training for groups with automated feedback after each quarter

As an online training programme facilitated by faculty from SimArch via webinar

On-site

On-site facilitated by your trainers or faculty from SimArch. The programme can be conducted over two days or can be divided into four sessions of four hours each.

Blended approach

Partly on-site with ongoing online sessions

BENEFITS OF GUARDB@NK 3

For participants

Gain an understanding of the Asset & Liability Management (ALM) Process in their bank
Recognize and understand how the key focus areas of ALM affect day-to-day decision-making in the bank
Improved ability to identify and analyze the bank’s exposure to the Key Sources of Financial Risk
Identify the various strategies and frameworks the bank employ in order to control risks within specified limits
Better interpret the Balance Sheet of their bank as well as being able to identify the key drivers of performance
Exposes participants to the challenges of risk management strategies, corporate governance and business ethics

For Learning & Development

GuardB@nk 3 is an ideal tool for developing the business acumen of personnel active in the following core functions: Treasury, ALM, Risk Management and Finance
The simulation improves the understanding of personnel with regards to the Money and Capital markets in which they operate
It offers alternative ways and opportunities to learn more about banking and the financial services industry
GuardB@nk 3 enhances understanding of regulatory requirements, stress testing as well as compliance issues
It creates opportunities for the exchange of experience, ideas and networking
The simulation is a supreme tool for team building and problem solving exercises