ALM Advisory Training Videos

Building an Effective Interest Rate Risk Management Program - $995

Ongoing regulatory scrutiny of Interest Rate Risk management indicates that this remains an area of heightened concern at banks and credit unions alike. Examiners have expanded the scope of their reviews to ensure every institution's policies, procedures, and modeling efforts comply with their heightened expectations.

This 5-video training series is led by Dave Wicklund, a former senior bank examiner with two decades of experience in community bank exams and training regulators in ALM. This series includes an in-depth review of today's regulatory expectations for your interest rate risk management program.

During this series you will gain a solid grasp of what is needed to implement an effective risk management program at your institution that complies with regulatory expectations and lays the groundwork for a successful exam.

Who should attend:

Presidents, CEOs, CFOs, Internal Auditors, ALCO Committee Members, and others responsible for Interest Rate Risk Management

Cost: $995

Session Descriptions:

Session 1: IRR Modeling Principles

Regulators expect financial institutions to have appropriate risk measurement models in place to adequately assess risk exposures.

This session thoroughly addresses expectations for:
  • Measurement Methods - a review of the strengths and weaknesses of gap models, earnings simulations, and capital valuation methodologies

  • Model Mechanics - a thorough explanation of the mechanics behind earning simulations and how the Market Value of Equity (aka Economic Value of Equity) calculation is derived - in simple terms

  • Stress Scenarios - essential elements in setting up models, the importance of the chart of accounts, and key model scenarios that examiners expect to see at each financial institution

  • Yield Curve Risk Assessments - the relevance of yield curve risk modeling, what yield curve shifts should be assessed, and how to set parameters for the calculation

Session 2: Key IRR Model Assumptions - Assets

This session focuses on key model assumptions impacting the asset portion of the balance sheet, options for setting them, and methods for sensitivity testing these assumptions.
  • Loan and Security Prepayments - learn methods for determining dynamic institution-specific prepayment assumptions for both loans and securities

  • Driver Rates - review considerations for selecting appropriate driver rates if required in your IRR model

  • Asset Repricing - explore model capabilities and methodologies for assumed loan and security repricing

Session 3: Key IRR Model Assumptions - Deposits

This session focuses on key model assumptions impacting the liability section of the balance sheet, options for setting them, and methods for sensitivity testing these assumptions.

  • Deposit Repricing/Betas - consider various methods for setting deposit repricing assumptions, including both quantitative and qualitative approaches

  • Non-Maturity Deposit Decay Rates - learn how do conduct an institution-specific decay study, including the incorporation of a "surge deposit" analysis

  • Deposit Discount Rates - review options for setting appropriate discount rates for both non-maturity deposits and CDs

Session 4: IRR Management

This session covers regulatory expectations for board and senior management oversight of your institution's interest rate risk management program.

  • Policies - items that should be included in your IRR policy with emphasis on specific areas that many institutions fail to include

  • Limits - help in developing appropriate limits for earnings simulations and capital valuation calculations, including nonparallel yield curve shift modeling

  • Controls - regulatory expectations for your IRR internal control structure, including corporate governance and model controls

Session 5: Independent Review, Model Validation, and Back Testing

This session addresses the framework and internal controls needed to ensure the integrity of your risk management processes.

  • Understanding the Terms - Independent Review; Model Validation; Back Testing: these terms are often used synonymously and frequently misunderstood.
    We'll explain how each of these components of an effective risk management program fit together and what regulatory guidance requires for each area.

  • Third-Party Reviews - we will fully explore the common shortcomings of third-party independent reviews and help you understand what you should be looking for when contracting an outside firm to conduct the review.


About Dave Wicklund:

Dave leads Plansmith's Educational and Advisory Services Division. He provides advisory services focusing on ALM model assumption development, policy guidance, independent review/validation, backtesting, and regulatory compliance.

Prior to joining Plansmith, Dave spent over 20 years at the FDIC, serving as Senior Bank Examiner and Capital Markets Subject Matter Expert. While at the FDIC, Dave co-developed and served as a lead course instructor for the FDIC's Asset/Liability Management School, developed nation-wide materials and led train-the-trainer sessions for the FDIC's Evaluating IRR Models training course, was an instructor at the Federal Reserve Board of Chicago's Asset/Liability Lab, and served as Examiner-in-Charge of numerous community bank examinations. Dave was an instructor for the FDIC's Directors College and has authored several articles released to community bankers on interest rate risk, independent review requirements, and liquidity risk management.

Have questions? Contact Dave Wicklund at 800-323-3281 or

And remember, you can get the complete training package for only $1,595!

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