 "Interest rate position of the EURO portfolio")
Integrate value, income and risk management
The FlexFinance ALM software provides an integrated solution for enterprise-wide value, income and risk management. Banks utilise our ALM solution for complete risk measurement, risk monitoring and risk control across multiple asset classes and risk factors. From an economic perspective, accounting practices for income and risks may sometimes produce misleading results. Profits can be shifted within existing ALM software using almost any suitable structured derivatives; risks can be valued in a number of very different ways in accounting regulations and balance sheet values can prove, subsequently, to be incorrect.
Risk measurement, risk monitoring and risk control
Risk-neutral spreads for credit, liquidity and other risks are included in the determination of present values in the FlexFinance ALM solution for discounting purposes. The income from and expense of interest-bearing deals are forecast, while the effect of market changes and balance sheet developments can be simulated in the FlexFinance ALM solution. Since data and results can be traced to individual deal level, figures can be checked with both the accounting and the financial controlling departments.
FlexFinance ALM provides:
- Estimation of the possible effects of business decisions by simulating any hypothetical deals.
- ALM solution with little customisation effort and fast implementation due to preconfigured business templates.
- Finest data granularity ensured by the availability and traceability of all cash flows from individual transactions on the balance sheet in a drilldown facility.
- Market risks are mapped directly in Asset and Liability Management ALM using sensitivity analyses.
