September 2010 BALM Newsletter Preview -
Balancing Qualitative & Quantitative Analysis in Interest Rate Risk
Management by Marshal S. Auron, of Velligan-Blaxall Consultants, LLC.
In this thought provoking article, Mr. Auron writes that the last few years
have taught us to expect what we had thought were low probability, high impact
events while preparing for remedial action if risk probabilities increase. This
approach has forced A/L managers to look at the environment on both a
quantitative and qualitative basis while taking a more realistic look at the
economy and the potential alternative yield curve scenarios. Years of financial
growth, combined with market instability has led A/L managers to determine how
much overarching risk tolerance their bank may have while keeping their business
risk profile within an acceptable range. Quantitative ALM is part of this
process of determining how much risk bank management can tolerate in their
banking operations. Over the years, this strategy has led to a greater reliance
on automated financial and risk management modeling tools. The growing
complexities in asset/liability management, combined with greater uncertainty
surrounding earnings and capital requirements has reinforced this use of
quantitative ALM modeling. More importance is being placed on the need to
balance quantitative and qualitative analyses to avoid quantitative domination.
Mr. Auron goes on to discuss the importance of rigorously questioning and
interpreting ALM modeling results to gain a clear understanding of how to apply
modeling results to the current risk environment. To preview an executive
summary of this upcoming article click here.
2010
BALM Compensation Survey - The
editorial staff of the Bank Asset/Liability Management newsletter
has recently completed the newsletter’s 19th annual ALM Compensation Survey. This
important survey profiles compensation in key areas for asset/liability
managers within the U.S. financial institutions industry. For a summary of these
recent compensation trends click here.
To order a copy of
the 2010 BALM Compensation Survey
Click Here
The
Bank Asset/Liability Management Newsletter Software Survey
is now
available. This important listing exhibits the most widely used,
commercially available asset/liability management software models used in
financial institutions today. The listing is comprised of ALM software
priced under $10,000, software from $10,000-$50,000, and more complex
software models priced over $50,000. The survey also provides specific
capabilities, including costs and hardware requirements for each vendor’s
offering. The models exhibited in this list provide tools for identifying
specific interest rate risk characteristics, transfer pricing solutions,
auditing controls, budget development, and more. The software survey and
accompanying literature summarizes several essential criteria to be
considered prior to purchasing ALM software.
To order a copy
of the current BALM Software Survey
Click Here
Press Releases & Recent Media Coverage:
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