CUNA Financial Management School: Part II
Topics & Objectives

Please note that the Topics/Objectives listed below are subject to change.

Computer Simulation Case Study: Introduction

Those who did not attend CUNA Financial Management School: Part I must attend this session.

• Understand the use of simulation tools in asset-liability management of credit union finances
• Explain the operation of the simulation case from the pre-reading assignments
• Learn how to use a team approach to asset-liability management in a modeling environment

Capital Adequacy: Measuring Risk-Based Capital & Introduction to the Financial Planning Case

• Understand the need for capital in a credit union
• Assess risks that require capital protection
• Use a capital adequacy model to determine a credit union’s ideal capital position

Advanced Asset-Liability Management: Interest Rate Risk Assessment

• Discover how product design and pricing affects sensitivity of cash flows to changes in interest rates
• Develop analytic tools to determine "decay rates" (deposit product sensitivity)
• Analyze "duration" (market price sensitivity)

Financial Planning & Control Systems

• Understand components of successful planning and control systems
• Discover the interrelationships of strategic plans, business plans, and control reporting systems

Managing Core Deposits

• Define core deposits
• Explore the core deposit paradox
• Analyze members’ core deposit behaviors
• Strategically manage core deposit pricing

Forecasting & Strategically Planning for Long-Term Growth

• Understand the financial implications of long-term growth
• Learn to forecast net worth, ROAA, and employee and facility growth
• Develop your credit union financial road map
• Create long-term financial simulations for your credit union

Financial Planning: Case Studies & Simulation Case Presentations

• Examine practical financial planning and control problems
• Review the financial planning simulation results
• Consider realism and lack of it in simulation results