ALM

Asset and Liability Management

Integrate value, income and risk management

The FlexFinance ALM software provides an integrated solution for enterprise-wide value, income and risk management. Banks use this ALM solution for an adequate risk measurement, risk monitoring and risk control across multiple asset classes and risk factors. From an economic perspective, accounting practices for income and risks have often been misleading. Income can be shifted within the ALM software almost optionally using suitable structured derivatives, risks can be valued very differently within the context of accounting regulations and balance sheet values can prove, subsequently, to be drastically 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 down to individual deal level, figures can be checked with both the accounting and the financial controlling departments.

• Estimation of the possible effects of business decisions by simulating any hypothetical deals.
• ALM solution with low customising effort and fast implementation through preconfigured business templates.
• Finest data granularity ensured through availability and traceability of all cash flows of individual transactions on the balance sheet in a drilldown facility.
• ALM solution ensuring low-risk project because of a consistent product range, based on a single data model for all banking products and data.
• Market risks are mapped directly in Asset and Liability Management ALM using sensitivity analyses.