Leverage enterprise-wide analytics for stress testing, interest rate risk management, liquidity risk management and funds transfer pricing.
The industry and regulatory response to the market dislocations that began in 2008 have sparked renewed interest in ALM. More traditional ALM approaches did not foresee or prevent the credit crisis. This acknowledgment of industry gaps and the emergence of strong regulatory reform is changing the way banks perform their asset and liability management. To remain competitive, banks must improve risk measurement and management to better align risk and capital. In particular, ALM professionals are being challenged to tie risk to decision making in a more holsitic and granular way.