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 deliver flexibility both in setting up analytics and in reporting, in order to allow expert interpretation of the analytical results.
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.
OneSumX® ALM is contract-centric; it builds up the balance sheet based on the details of contracts from which various risk metric scan be calculated, including risk factors, counter party information and behavioural modelling.
A centralized data repository combining contract data, balance sheet structures, counter party and market data complements the ALM solution and is an integral part of the overall system.
Editing environment for the specification, documentation, execution and monitoring of business rules with user workflow support; it also covers the data transformations, enrichments and validation rules
Balance sheet modelling
Fully integrated solution offering various modules including: ALM, FTP, Liquidity Risk, Credit Risk, Market Risk and Stress Testing
We have a strong understanding of the end to end process and can project-manage or advise on a range of challenges:
Design and implementation of an ALM operating model (strategy, governance, process, methodology, systems)
Design of an interest rate risk or liquidity risk management framework (identifying, measuring, monitoring)
Design and implementation of ALM governance frameworks (roles, responsibilities, segregation of duties, mission statement, etc.)
Methodology support in the design, implementation and validation of ALM models
Definition of an ALM strategy (Interest rate/Liquidity risk appetite and hedging strategy), Funds Transfer Pricing approach (‘FTP’) approach and performance optimisation
Definition and execution of liquidity stress testing approaches (including the link with the ILAAP, PPR)
Implementation and production of internal and regulatory reporting (liquidity, LCR, NSFR, monitoring tools)