PORTFOLIO OPTIMIZATION
- Principles of Portfolio Optimization
- Risk-return trade-off in portfolio selection
- Diversification benefits and correlation analysis
- Efficient frontier concept
- Modern Portfolio Theory (MPT)
- Mean-variance optimization
- Capital Market Line (CML) and Security Market Line (SML)
- Portfolio construction techniques
- Optimization Tools and Techniques
- Excel and software-based optimization methods
- Constraint handling in portfolio models
- Scenario-based optimization
- Risk-Return Analysis
- Measuring expected returns and volatility
- Sharpe, Treynor, and Sortino ratios
- Performance benchmarking
ASSET-LIABILITY MANAGEMENT (ALM)
- ALM Fundamentals
- Definition and objectives of ALM
- Importance in banking operations
- Regulatory requirements overview
- Interest Rate Risk Management
- Gap analysis
- Duration and convexity measures
- Hedging strategies
- Liquidity Risk Management
- Funding gaps and liquidity metrics
- Contingency funding planning
- Stress testing liquidity positions
- ALM Techniques and Tools
- Asset-liability matching
- Simulation models and scenario analysis
- Risk monitoring dashboards
RISK-ADJUSTED PERFORMANCE
- Performance Measurement Metrics
- Risk-adjusted return concepts
- Sharpe, Treynor, and Information ratios
- Benchmarking and performance attribution
- Risk Decomposition
- Credit, market, and operational risk contributions
- Volatility and downside risk measures
- Correlation and covariance analysis
- Portfolio Stress Testing
- Scenario analysis for adverse market conditions
- Sensitivity analysis of portfolio returns
- Stress test interpretation
- Advanced Performance Analytics
- Multi-factor risk models
- Regression and factor analysis
- Quantifying active vs. passive performance
STRATEGIC ASSET ALLOCATION
- Asset Allocation Principles
- Strategic vs. tactical allocation
- Diversification across asset classes
- Long-term portfolio strategy
- Investment Policy Development
- Risk tolerance and investment objectives
- Policy statement formulation
- Guidelines for portfolio management
- Scenario-Based Allocation
- Market scenario simulations
- Rebalancing strategies
- Stress impact on allocations
- Alternative Assets and Diversification
- Inclusion of fixed income, equities, and alternatives
- Benefits and risks of alternative investments
- Correlation with traditional assets
INVESTMENT ANALYTICS
- Quantitative Analytics Tools
- Statistical methods in portfolio analysis
- Risk and return modeling
- Scenario simulations
- Advanced Portfolio Modeling
- Mean-variance optimization applications
- Multi-asset and multi-factor modeling
- Stress testing portfolio performance
- Performance Attribution
- Attribution to asset allocation vs. security selection
- Risk contribution analysis
- Benchmark comparison techniques
- Integration of Analytical Models
- Combining market, credit, and liquidity factors
- Enterprise-wide portfolio risk assessment
- Capital adequacy considerations
REGULATORY COMPLIANCE KNOWLEDGE
- Global and Local Regulations
- Basel III capital and liquidity standards
- Local portfolio guidelines
- Compliance reporting obligations
- Governance and Oversight
- Risk committees and reporting lines
- Internal audit and review functions
- Board-level oversight responsibilities
- Regulatory Risk Management
- Identifying compliance gaps
- Mitigation of regulatory risk
- Reporting frameworks and templates
- Integration into Portfolio Management
- Aligning portfolio strategy with regulatory limits
- Continuous monitoring and updates
PERFORMANCE MONITORING AND REPORTING
- Importance of Monitoring
- Continuous tracking of portfolio performance
- Early warning indicators
- Decision-making support
- Performance Reporting Frameworks
- Report structure and key metrics
- Dashboards and visualization tools
- Communication to stakeholders
- Strategic Insights from Data
- Identifying trends and risks
- Benchmark comparisons
- Regulatory Reporting Requirements
- Capstone Project
