It is universally understood that asset\liability management (ALM) is a critical function for management of your financial institution’s performance. Understanding and measuring the financial risks assumed by your institution and the associated rewards is the essence of good financial management.
For decades, industry net interest margins have under pressure due to lower interest rates and increased competition. With growing pressure from non-bank players offering “banking” services, using the ALM process to measure and more importantly, MANAGE, your performance and risks to your institution’s return has never been greater.
This 90-minute course provides attendees with a basic understanding of the asset\liability management process. In the session we cover the role of Asset/Liability Management (ALM) as well as the fundamental components to an effective ALM process to measure and manage key risks.
This 90-minute webinar will cover:
- The role of the ALM process in financial institutions
- Options to measure risks we care about in the ALM process
- Measurements do we use to address ALCO risks,
- The common faults in community FI risk assessments
- Understand the overall framework of Asset/Liability Management
- Analyze the key risk areas ALCO must manage
- Explain the role of income simulation, duration and economic value measures
- Explain the different between static and dynamic value at risk measurements
- Define Income at risk and value at risk
- Understand the role of liquidity risk management
- Outline key variables impacting the results
Target Audience: CEOs, CFOs, ALCO members, controllers, chief risk officer, chief retail, funding officers. This session is intended for individuals that are new to the ALM process.