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Managing Interest Rate Risk

Managing Interest Rate Risk


Course Description: This course provides participants with tools to measure and manage their bank’s interest rate risk.

“I received comments from upper management that the book we studied from (Bank Management) is the best book in the industry.  The course work took me longer than I anticipated, but the assignments were challenging and I felt like I learned a lot about ALM.”

Member Online Enrollment | Non-Member Online Enrollment

Price $875 NBA or ABA Members/$1125 Non-Members with textbook;
$660 NBA or ABA Members/$870 Non-Members without textbook
A shipping/handling fee is added to AIB Online Courses with textbooks. State sales tax applies to cost of text only.
Length 8 Weeks
Prerequisites Participants should be familiar with the characteristics of financial instruments that appear on bank balance sheets.
Required Software Technical Requirements
Textbook Bank Management, 8th Edition, Timothy W. Koch and S. Scott MacDonald, Thomson Learning  Other courses using this textbook are: Analyzing Bank PerformanceManaging Funding, Liquidity, and CapitalManaging the Bank’s Investment Portfolio.  

Audience: Managing Interest Rate Risk is a rigorous course designed for individuals involved in asset liability management or line managers making pricing, investment, or funding decisions that impact interest rate risk.

Learning Objectives: After successfully completing this program, you will be able to:

  • Understand the mechanics of valuing cash flows including duration and price sensitivity
  • Identify the determinants of the overall level of interest rates
  • Use static GAP analysis to measure interest rate risk
  • Use duration gap to measure interest rate risk
  • Assess the impact on interest rate risk of various pricing, investment, and funding decisions
  • Use a range of derivatives to manage interest rate risk including futures, forwards, interest rate swaps, caps, floors, and collars
  • Apply all of these concepts to the management of interest rate risk in their own institution
  • Use duration gap to measure interest rate risk

Students who complete this course along with four other courses, may obtain the Bank Financial Management Diploma.

The Nebraska Bankers Association is a Local ABA Training Provider.

For More Information Contact:

Joanne Smith
Education and Member Information Coordinator

Nebraska Bankers Association / 233 South 13th Street, Suite 700 / PO Box 80008 / Lincoln, NE 68501-0008