Did you know that understanding markets and liquidity is difficult in a complex financial system, that financial institutions, corporations, central banks, and institutional investors around the globe are increasingly adding to their market risks in different business scenarios by trying to generate higher returns while keeping costs low, and that professionally trained market and liquidity risk managers are among the most strategically critical professionals in any financial institution, responsible for ensuring that the organization can meet its obligations, withstand market stress, and comply with the Basel III regulatory capital and liquidity requirements that govern global banking?

Course Overview

The Market and Liquidity Risk Management Certification Training Course by Rcademy is designed to equip compliance officers, asset managers, strategy development officers, corporate risk managers, financial service officers, project managers, liquidity managers, risk analysts, and regulatory and supervisory officers with comprehensive mastery of market risks and their types, the trading book and banking book distinction, volatility measurement and risk transfer, organisational structure and governance of risk management, internal risk models, liquidity risk types including regulatory, counterparty, and accounting risks, real-world experience in measuring and managing these risks, Basel III capital ratio requirements including CVA, DVA, counterparty risk, and collateral treatment, and the analytical skills to assess interactions between reputational, market, credit, and operational risks.

Without specialized market and liquidity risk management training, financial professionals may measure and report risk without the structured frameworks, regulatory knowledge, and practical measurement tools needed to genuinely manage market and liquidity exposures. This comprehensive certification course provides a structured path to market and liquidity risk management expertise, from foundational market risk concepts through to advanced Basel III capital and liquidity requirements, preparing participants to lead risk management functions at the highest professional level. Those who want to develop their credit risk expertise alongside market and liquidity risk management will find deep synergies in the credit risk analysis, modelling and management certification, while professionals who want the broader financial regulation context should explore financial regulation and compliance training.

The Basel III framework, developed by the Bank for International Settlements Basel Committee on Banking Supervision, is the foundational international regulatory standard for market risk capital requirements, liquidity risk management, and capital adequacy in banks. The Basel III requirements covered in this course, including the Fundamental Review of the Trading Book (FRTB), the Liquidity Coverage Ratio (LCR), and the Net Stable Funding Ratio (NSFR), represent the core regulatory framework within which all professionally trained market and liquidity risk managers must operate.

Research published by GARP (Global Association of Risk Professionals) on market risk management has confirmed that professionals who develop systematic, model-based approaches to market and liquidity risk measurement consistently achieve better risk management outcomes than those who rely on simpler, judgment-based approaches. GARP research confirms that VaR, stressed VaR, and Basel III capital measurement frameworks, all covered in this course, are the most important quantitative risk management tools in professional financial practice. For those who want to develop their quantitative risk skills further, the quantitative, mathematical and computational finance course provides deep methodological grounding.

Master market and liquidity risk management. Enroll now in the Rcademy Market and Liquidity Risk Management Certification Training Course to develop the risk measurement, regulatory capital, and liquidity management expertise that positions you as a trusted risk professional in any financial institution.

Who Should Attend?

The Market and Liquidity Risk Management Certification Training Course by Rcademy is ideal for:

• Compliance officers who need to understand market and liquidity risk frameworks to support regulatory compliance
• Asset managers responsible for portfolio risk measurement and management
• Strategy development officers who incorporate market and liquidity risk into organizational strategic planning
• Corporate risk managers responsible for enterprise-wide market and liquidity risk oversight
• Financial service officers working in risk, treasury, or finance functions of banks and financial institutions
• Liquidity managers responsible for ensuring institutional liquidity adequacy and regulatory compliance
• Risk analysts and regulatory and supervisory officers who assess market and liquidity risk in financial institutions

What Are the Training Goals?

The objectives of The Market and Liquidity Risk Management Certification Training Course by Rcademy are to enable participants to:

• Discover various types of liquidity risks, regulatory risks, counterparty risks, and accounting risks and understand their interactions.
• Gain real-world experience in measuring and managing risks using industry-standard tools and frameworks.
• Apply the learned skills to analyse various interactions of different risks including reputational, market, credit, and operational.
• Understand the differences between the banking book and trading book and their different regulatory treatments.
• Apply Basel III capital ratio requirements, leverage ratios, and capital conservation buffers to real institutional risk scenarios.
• Understand CVA, DVA, and counterparty credit risk and their treatment under Basel III.
• Develop expertise in VaR, stressed VaR, and other market risk measurement tools used in professional risk management.

How Will This Training Course Be Presented?

This course will be facilitated by highly trained experts in teaching and their fields of specialisation. It will be highly engaging to ensure participants actively participate in group discussions to identify valid case uses of the skills learned. It will also help them identify the wrong choices various companies and individuals make when they experience issues, the risks they ignore, and how ignored issues can majorly affect the performance of companies. The course will use the following learning methods: short videos, lecture notes, examples, and case studies.

The training framework includes:

• Expert instruction by market and liquidity risk practitioners with deep institutional and regulatory expertise
• Short videos, lecture notes, examples, and case studies that make complex risk concepts accessible and applicable
• Group discussions analyzing real market and liquidity risk management challenges and their solutions
• Risk measurement exercises applying VaR, stressed VaR, and Basel III capital calculations to institutional portfolios
• Case studies examining market and liquidity risk failures and the risk management decisions that contributed to them
• Regulatory capital calculation workshops applying Basel III requirements to real trading book and banking book positions

Rcademy designed this course and engages the Do-Review-Learn-Apply Model to aid the learning process, ensuring that participants develop practical market and liquidity risk management capabilities. The training course is available in classroom, live online, and customized in-house formats.

Course Syllabus

Module 1: Introduction to Market Risk

• Definitions of market risks and their application in financial institutions
• Understanding market terminologies: capital, risk, hedging, and risk transfer mechanisms
• Understanding the trading book: what positions are held in the trading book and why
• Market limits and risk overview: position limits, stop-loss limits, and risk factor limits
• Instruments movement between banking book and trading book restrictions under Basel III
• Overview of volatility: measuring, monitoring, and managing market volatility as a risk factor
• FRTB standardized approach vs. internal models approach
• Sensitivity-based method and default risk charge

Module 2: Internal Models Introduction

• Introduction to internal risk models: when and how banks use internal models for regulatory capital calculation
• Value at Risk (VaR): parametric, historical simulation, and Monte Carlo VaR methodologies
• Stressed VaR: how stress testing enhances standard VaR with crisis-period calibration
• Expected Shortfall (ES/CVaR): the Basel III replacement for VaR in the Fundamental Review of the Trading Book
• Model validation: the processes and standards for validating internal market risk models
• Backtesting and benchmarking: how to assess the accuracy of VaR and ES models against realized losses
• Incremental risk charge (IRC) and comprehensive risk measure (CRM)
• Model performance multipliers and capital add-ons

Module 3: Liquidity Risk Management

• Types of liquidity risk: market liquidity risk, funding liquidity risk, and their interactions
• Liquidity risk measurement: key metrics including the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)
• Cash flow at risk and funding gap analysis: measuring institutional liquidity vulnerability over different time horizons
• Contingency Funding Plans (CFPs): how institutions plan for liquidity stress scenarios
• Intraday liquidity management: managing real-time payment obligations and intraday liquidity risk
• Liquidity stress testing: designing and conducting liquidity stress tests that meet regulatory requirements
• High-quality liquid assets (HQLA) eligibility and diversification
• Net cash outflow assumptions under LCR stress scenarios

Module 4: Regulatory Risk and Compliance

• Regulatory risks in market and liquidity risk management: how regulation shapes institutional risk management practice
• Basel III overview: capital requirements, liquidity standards, and leverage ratio framework
• The Fundamental Review of the Trading Book (FRTB): new market risk capital rules and their institutional impact
• Minimum capital ratios required: Tier 1, Tier 2, CET1, and total capital ratio requirements
• Countercyclical capital buffer requirements and global systemically important bank (G-SIB) surcharges
• Comparing Basel III to Basel I and II: understanding how the regulatory framework has evolved and why
• Leverage exposure calculation and off-balance sheet treatment
• Pillar 2 supervisory review and ICAAP integration

Module 5: Counterparty Credit Risk and CVA/DVA

• Counterparty credit risk in derivatives: how exposure to counterparty default affects derivatives portfolios
• Credit Valuation Adjustment (CVA): measuring and pricing counterparty credit risk in derivatives transactions
• Debt Valuation Adjustment (DVA): the bank’s own credit risk in derivatives valuation
• Central clearing counterparty (CCP) implications on market requirements and counterparty risk management
• Collateral and netting in counterparty risk management: how collateral reduces exposure and regulatory capital
• Wrong-way risk: scenarios where counterparty exposure increases when the counterparty is most likely to default
• Potential future exposure (PFE) and expected positive exposure (EPE)
• Wrong-way risk mitigation and collateral valuation adjustments

Module 6: Risk-Weighted Assets, Leverage Ratio, and Capital Ratio

• Introduction to the supplemental leverage ratio and leverage ratios under Basel III
• On- and off-balance sheet contingent exposure and methods for calculating leverage exposure
• Required capital ratios: Tier 1 common equity requirements and minimum capital ratio standards
• Credit risk for a loan portfolio under standardized and internal ratings-based approaches
• Risk-weighted assets calculation: how market, credit, and operational risk exposures are weighted for capital purposes
• Asset value correlations and wrong-way risk treatment under the Basel III capital framework
• Standardized approach for counterparty credit risk (SA-CCR)
• Internal model method (IMM) for counterparty exposure

Module 7: Integrated Risk Management and Organizational Governance

• Organisational structure and governance of risk management in financial institutions
• The interactions between reputational, market, credit, and operational risks across the institution
• Risk appetite frameworks: how senior management defines and operationalizes institutional risk tolerance
• Internal capital adequacy assessment process (ICAAP): how banks assess their own capital needs
• Stress testing frameworks: ICAAP, supervisory stress tests, and the role of market and liquidity risk scenarios
• Risk management career development: building expertise and professional credentials in market and liquidity risk
• Recovery and resolution planning (RRP) integration
• ESG risk factors in market and liquidity risk frameworks

Training Impact

The impact of Market and Liquidity Risk Management Certification training is visible in how financial institutions achieve stronger risk measurement capabilities, better regulatory capital management, more effective liquidity planning, and the institutional resilience that protects against the market and liquidity stress events that have historically caused the most severe financial institution failures.

Bank for International Settlements – Basel III: A Global Regulatory Framework

Background: The Basel III framework, developed by the Basel Committee on Banking Supervision (BCBS) under the Bank for International Settlements, represents the primary international regulatory standard for market risk capital requirements, liquidity risk management, and overall capital adequacy in banking institutions. Basel III introduced the Fundamental Review of the Trading Book (FRTB) for market risk, the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for liquidity risk, and strengthened capital ratio requirements that collectively define the regulatory environment within which market and liquidity risk managers must operate globally. Basel III was developed in direct response to the market and liquidity risk failures revealed by the 2007-2009 global financial crisis.

Relevance: The Basel III framework is the foundational regulatory standard for every module in this Rcademy market and liquidity risk management certification. From VaR and stressed VaR market risk measurement through to LCR and NSFR liquidity requirements, CVA capital charges, and minimum capital ratio compliance, the course systematically builds participants’ mastery of how Basel III requirements translate into institutional risk management practice. Professionals who complete this certification will have the comprehensive Basel III knowledge needed to design, implement, and manage market and liquidity risk frameworks that meet international regulatory standards.

GARP – Financial Risk Manager (FRM) Standards and Market Risk Research

Background: The Global Association of Risk Professionals (GARP), the world’s leading professional association for risk managers, has established through its FRM certification program and research activities the authoritative professional standards for market and liquidity risk management practice. GARP’s FRM curriculum covers VaR, Expected Shortfall, liquidity risk, Basel III capital requirements, and counterparty credit risk in depth, reflecting the body of knowledge that GARP has identified as essential for professional risk managers. GARP’s research publications on market risk management, liquidity risk, and regulatory capital provide ongoing evidence of how these frameworks evolve in response to market conditions and regulatory development.

Relevance: The GARP FRM curriculum validates the scope and depth of this Rcademy market and liquidity risk management certification. By aligning the course content with the market and liquidity risk knowledge that GARP identifies as essential for professional risk managers, this certification ensures that participants develop the capabilities that the global risk management profession recognizes as most important. Professionals who complete this Rcademy certification will have developed knowledge aligned with GARP’s professional standards, positioning them well for careers in market and liquidity risk management at any major financial institution.

IMF Working Papers – Financial Risk Management and Systemic Risk

Background: The International Monetary Fund’s research on financial risk management and systemic risk has confirmed that deficiencies in market and liquidity risk management are among the most important institutional vulnerabilities that contribute to financial crises. IMF research on the 2007-2009 global financial crisis identified inadequate market risk models, poor liquidity risk management, and insufficient capital buffers as the key institutional failures that amplified the crisis. IMF research on post-crisis regulatory reform has confirmed that the Basel III requirements covered in this course address the specific market and liquidity risk management weaknesses that the crisis exposed.

Relevance: The IMF’s research on financial risk management failures and regulatory reform provides the institutional and systemic context for why the market and liquidity risk management skills this Rcademy certification develops are among the most important in the financial risk management profession. By confirming that inadequate market and liquidity risk management contributed to the most severe financial crisis in a generation, IMF research makes the case that investing in professional market and liquidity risk management training is not a regulatory compliance exercise but a genuine contribution to institutional and systemic financial stability.

Be inspired by how BIS Basel III standards, GARP professional risk management standards, and IMF research on financial risk management all confirm that expert market and liquidity risk management capability is among the most strategically important investments any financial institution can make in its professional talent. Join the Rcademy Market and Liquidity Risk Management Certification Training Course to master the risk measurement, regulatory capital, and liquidity management skills that make you an indispensable risk professional in any financial institution.