Balance Sheet Risk Assessment and Management

Balance Sheet Risk Assessment and Management explores how organisations identify, measure and manage risks arising from their statement of financial position. The course examines the key financial, liquidity, solvency and market risks embedded within assets, liabilities and capital structures, and how these risks affect financial stability and long-term sustainability.

In today’s volatile economic environment, businesses face increasing pressure from fluctuating interest rates, credit exposure, funding constraints, asset impairments and market uncertainty. Poor balance sheet management can result in liquidity crises, covenant breaches, financial distress and loss of investor confidence. Entities must therefore carefully assess their risk exposures and implement effective risk mitigation strategies.

This course provides a practical framework for evaluating balance sheet strength, analysing financial ratios, identifying red flags, and strengthening financial resilience. It equips professionals with the tools necessary to support informed decision-making and strategic financial management.

TARGET COMPETENCIES

This IFRS Training comprehensive course will enable participants to appreciate and understand the following target competencies:

• Identify key balance sheet risks and exposure areas

• Assess liquidity and solvency risk using financial ratios

• Evaluate credit risk and asset quality

• Analyse capital structure and funding risks

• Understand market risks affecting balance sheet items

• Interpret covenant compliance and early warning indicators

• Apply risk mitigation and balance sheet optimisation strategies

• Strengthen financial resilience and sustainability

WHO SHOULD ATTEND?

This well-researched course will benefit executives and professionals responsible for financial oversight, risk management and strategic decision-making within their organisation.

• Accounting Professionals

• Finance Directors

• Head of Finance

• Chief Financial Officers

• Risk Managers

• Treasury Professionals

• Accounts Managers

• Accountants

• Auditors

• Financial Analysts

Organisations consider this course an excellent opportunity to equip finance teams and emerging leaders with practical skills to manage financial risk and protect organisational stability.

COURSE OUTLINE

Introduction to Balance Sheet Risk

• Overview of balance sheet risk concepts

• Financial resilience and sustainability

Liquidity Risk Management

• Working capital management

• Cash flow analysis

• Current and quick ratios

• Funding mismatches

Solvency and Capital Structure

• Debt-to-equity analysis

• Interest coverage ratios

• Leverage management

• Covenant monitoring

Credit and Asset Quality Risk

• Trade receivables and impairment considerations

• Inventory risks

• Non-financial asset impairments

• Concentration risk analysis

Market Risk Exposure

• Interest rate risk

• Foreign exchange risk

• Fair value considerations

• Hedging strategies overview

Risk Measurement and Monitoring

• Ratio analysis and trend analysis

• Stress testing and sensitivity analysis

• Early warning indicators

• Risk dashboards and reporting

Governance and Strategic Management

• Risk appetite frameworks

• Board oversight

• Internal controls

• Financial disclosure considerations

VENUE

Choice between In-house / External Venue / Live Online Classroom

Do you have more people interested in attending this course? Would you like to tailor it to meet your company’s specific requirements? We can deliver this course at your organisation’s premises, helping you reduce costs while increasing return on investment.

If you prefer a customised learning solution or delivery at a convenient location, we can assist. Our learning specialists will guide you from initial consultation through to evaluation, ensuring maximum value from your training investment.