Contingency Funding Plan (CFP) - Workshop

A contingency funding plan (CFP) addresses an institution’s strategy for handling liquidity crises. It describes procedures for managing (and making up) cash flow shortfalls in stress situations. Effective CFPs are built upon the output of stress tests and scenario analysis.

The aim of this workshop is to provide the participants with a complete coverage of how to implement a CFP, also in the context of the applicable regulation. The workshop will go beyond the mere illustration of the requested content of a standard CFP, by providing concrete examples of the implementation approach, including aspects related to governance, approval process, internal audit and consolidated group coverage.  

The regulatory context relevant to the CFP

• The three Pillars of the banking regulation

• The Principles by the Basel Committee

• The Supervisory Expectations by the European Central Bank

• The Guidelines by the European Banking Authority

The content and structure of the CFP report

• Definitions

• Governance

• Roles and Responsibilities

• Contingency Process

• Mitigating Options

• Liquidity crisis communication plan

• Stress Scenarii

• CFP testing 
  

  The CFP process in action

•   How to organise the CFP drafting and maintenance

• • Actors involved and governance (Risk management, ALCO, BoD, etc.)

  • The timeline

  • Resources needed 
    

•  The CFP in the context of the “Three Lines of Defense” model

  • The role of Internal Audit

  • The role of Model Validation 
    

• What you’ll not find in books: an honest testimonial from a “CFP veteran”

• • Lessons learned

  • An overview of what’s great and not so great.

The methodology is based on a “workshop” approach, which requires active participation by the attendants. The focus will be highly practical rather than theoretical and there will be several Questions & Answer sessions throughout the duration of the workshop.

Banking professionals from banks (commercial and central), financial institutions or supervision authorities, who already have familiarity with risk management fundamentals and who wish to acquire a practical understanding of the CFP.

Due to its short duration, this course can only be delivered on site if coupled with another course in risk management (liquidity risk for example) by the same trainer.