Attendees will learn to use financial ratios to evaluate their credit union's financial performance by examining each risk area to understand trends over time, interrelationships among ratios, and increasing and decreasing strengths and weaknesses.

You will also learn to:

• Review the ratio forecasting methods given the economic projections.
• Understand how tools, ratios, policies, changes, and decisions are linked.
• Analyze how recent economic trends have altered many of your credit union’s ratios. 

Review the reasons why financial management is critical in credit unions today, given the current economic environment. You will explore how operating expenses can be managed and optimized. Attendees will also review the foundations of financial management: objectives, purpose, tools, ratios, and strategies for maximizing earnings. 

Learn to critically review and understand balance sheet risk and apply asset/liability management (ALM) tools to balance sheet management. You will also examine modeling techniques to consider in the ALM process. 

Discover how product design and pricing affect cash flow sensitivity to changes in interest rates. Attendees will develop analytic tools to determine “decay rates” (deposit product sensitivity) and analyze “duration” (market price sensitivity). 

Discuss how a future interest rate increase will affect the balance sheet and income statement while identifying the four elements of interest rate risk and how they affect the credit union earnings and balance sheet: yield curve, basis, optionality, and re-pricing risk. You will also learn to:  

• Identify and manage elements of market risk.
• Examine and analyze the factors that affect the market value.
• Analyze factors that affect the market value and cause market risk. 

Become more familiar with the different types of credit risk and explore how to manage and control it. Learn to understand the role of credit risk while managing the balance sheet and explore different forecasting methods for loan delinquency and charge-offs.

Learn how to identify, manage, and control liquidity risk and understand the critical elements in operational and contingency liquidity. Attendees will establish best practices when forecasting cash flow needs and sources. Finally, they will review external funding and asset liquidation options. 

Learn how forecasting and projections can enhance the budget and planning processes. You will understand the financial implications that come with long-term growth. Create a long-term financial simulation for your credit union to help develop a credit union financial road map.