Course Overview

This 5-day comprehensive course is designed to equip public sector professionals with advanced knowledge and practical strategies for effective liability portfolio management. With a strong focus on the unique challenges, governance requirements, and regulatory constraints faced in the public sector, the programme provides a structured approach to managing financial obligations and funding decisions.

Participants will explore key areas such as liability analysis, risk identification and mitigation, and sustainable funding strategies, enabling them to make informed and compliant financial decisions. The course emphasises practical application, ensuring participants can translate theory into effective public sector financial management practices that improve stability, accountability, and long-term fiscal resilience.

Agenda

Day — 1 Introduction to Liability Portfolio Management

• Defining Liability Portfolio Management (LPM) and understanding its role in ensuring fiscal stability and efficient financial management within the public sector
• Exploring the regulatory framework governing public sector liability management and its compliance requirements
• Identifying and classifying different types of liabilities, including:
  • Short-term liabilities
  • Long-term liabilities
  • Contingent liabilities
• Establishing clear objectives for effective liability portfolio management, focusing on risk control, sustainability, and optimal resource allocation

Day — 2 Liability Analysis and Identification

• Applying tools and techniques for effective liability analysis in public sector financial management
• Understanding asset-liability matching (ALM) and its importance in maintaining financial stability in public sector portfolios
• Identifying and assessing contingent liabilities and off-balance-sheet exposures
• Evaluating the cost of liabilities, including interest costs, risk exposure, and long-term fiscal impact

Day — 3 Risk Management in Liability Portfolio

• Identifying and measuring key risks in liability portfolios, including:
  • Credit risk
  • Interest rate risk
  • Liquidity risk
• Applying risk mitigation strategies such as hedging techniques, diversification approaches, and the use of swaps
• Conducting stress testing and scenario analysis to assess portfolio resilience under different economic conditions
• Developing and implementing a comprehensive risk management policy to support effective liability portfolio governance

Day — 4 Funding and Financing Strategies

• Understanding internal vs. external funding sources and their role in managing public sector liabilities
• Exploring debt management strategies used in the public sector to control and optimise liability structures
• Applying cost-benefit analysis to evaluate different financing and funding options
• Establishing effective systems for monitoring and reporting funding strategies to ensure transparency, accountability, and financial control

Day — 5 Technological Tools and Future Trends

• Leveraging modern technology to improve liability portfolio management efficiency, accuracy, and decision-making
• Using advanced analytics and reporting tools, including:
  • Big Data analytics
  • Artificial Intelligence (AI)
  • Machine Learning (ML) applications
• Understanding compliance and regulatory reporting requirements in a digital and automated financial environment
• Exploring future developments and emerging trends in liability management, including digital transformation, predictive analytics, and evolving public sector financial systems

Learning Outcomes

Upon completion of this course, participants should be able to:

• Understand the fundamentals and importance of liability portfolio management in the public sector
• Identify and analyse different types of liabilities and assess their impact on public finances
• Apply risk management strategies tailored to public sector liability portfolio management
• Utilise analytical tools and relevant technologies to evaluate and optimise liability portfolios effectively

Who Should Attend

This course is designed for professionals working in public sector financial management, risk oversight, and policy implementation, including:

• Public Sector Finance and Treasury Managers
• Risk Managers and Financial Analysts
• Policy Makers and Public Sector Consultants
• Regulatory and Compliance Officers