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SOFTWARES

ASSET AND LIABILITY MANAGEMENT (ALM)

Asset and Liability Management (ALM) is as much an art as a science – as a consequence, an ALM solution should provide all the analytical tools to support the quantitative elements, but also delivers flexibility both in setting up analytics and in reporting, in order to allow expert interpretation of the analytical results. Where ALM in the past was focused on interest rate risk, today more holistic balance sheet risk management is required. Interest rate risk, both in the banking and the trading book cannot be viewed in isolation from liquidity risk, funds transfer pricing, or capital management. Balance sheets have become more volatile - a result of changing term structures, optionality, better informed customers and the use of derivatives. To manage this situation effectively, financial institutions need a solution that allows continuous risk assessment while supporting exploration of multiple scenarios and simulations, both strategically and on an ad-hoc basis. FIRISKLAB ALM software is contract-centric; it builds up the balance sheet based on the details of contracts from which various risk metrics can be calculated, including risk factors, counterpart information and behavioral modeling. A centralized data repository combining contract data, balance sheet structures, counterparty and market data complements the ALM solution and is an integral part of the overall system. Our ALM solution is based on our integrated data architecture and is extensible via a full-fledged finance and international financial reporting standard module is a truly enterprise-wide risk solution. The solution enables:

  • Balance sheet modeling

  • Risk measurement

  • Risk management

  • Regulatory compliance