This course introduces the concept of Funding Liquidity Risk for LAS Book within the Loan Against Shares (LAS) Credit framework. It focuses on assessing liquidity risks arising from funding structures, collateral volatility, borrower leverage behaviour, margin stress conditions, and rapid exposure changes within lending portfolios secured against listed securities.
Learners will explore key assessment dimensions such as management of credit against listed securities, margin maintenance governance, concentration risk oversight, and real-time risk controls, with an emphasis on independent validation and well-documented rationale. The course highlights how funding liquidity risk assessment influences portfolio resilience, funding stability, operational responsiveness, liquidation preparedness, exposure management, and overall risk governance effectiveness. It also examines how weak liquidity risk management can result in funding mismatches, forced asset liquidation, governance weaknesses, operational disruptions, elevated market losses, concentration vulnerabilities, and increased systemic stress within LAS portfolios.
The course distinguishes funding liquidity risk for LAS books from broader portfolio diversification strategies, emphasizing its role in exposure-level liquidity monitoring, structured stress response management, funding adequacy assessment, and corrective action escalation, whereas portfolio diversification strategies focus more broadly on balancing aggregate exposures across borrower groups, sectors, instruments, and wider market risk concentrations. Each requires distinct evidence standards, ownership, and approval authority.
By the end of the course, participants will understand how to design, assess, and implement funding liquidity risk frameworks in practice, particularly within Funding Liquidity Risk Management functions for LAS portfolios. The course also emphasizes the role of the credit manager in validating team-level analysis, approving case recommendations, and managing segment-level exposure within Loan Against Shares (LAS) Credit, ensuring disciplined collateral governance, sustainable liquidity management, and alignment with credit committee priorities.