Training center

Course: Internal Finance: Responsible for Everything (4 hrs seminar)

The Basel Committee has enforced separation of risk management and business functions. It acted out of a desire to counter a natural bias of business units and conflicts of interest that result. However, risk management in a dissected structure runs contrary to a bank’s agenda. Effective business decisions are difficult to make when some managers (in business units) have no information on the bank’s financial situation and risks in general while others (in risk management) do not care for commercial success.

Internal Finance is a unit responsible for making and implementing business decisions. It bears responsibility for financial results among structural risks (interest and liquidity), reduces these risks to acceptable levels, controls short and medium-term planning and determines prime cost of resources.

Main program issues

• Responsibilities and limitations of Internal Finance.
• Separation from dealing, which works on the currency and interbank markets.
• Deadline management: money on call, modeling of a deposit portfolio.
• Managing interest and liquidity risks.
• Planning for bank operations.
• Efficiency of bank functioning from Internal Finance.