Interest rate risk
Liquidity and refinancing risks
Credit risk and expected credit loss
Continuous level of services
Perceiving the overall picture
Comprehensive and active management of balance sheet risks and dependencies.
Data quality is a vital part of risk management.
Information to support decision making
Improved predictability and reliability lead to optimal business decisions and risk hedging measures.
Individually designed solutions
Individual service structure from data warehousing to final report analysis and action recommendations and everything in between.
Improving internal and external reporting and cost savings will enable additional resources for the core business that generates value.
Through us, you get flexible and easy access to experts dedicated to the financial sector.
Risk and capital management
The beginning of the 21’st century can be marked with digitalization in banking and finance, and the strong growth of financial regulation. Both have resulted in the development of product portfolios and risk related to products and business in financial institutions. Diversity and dependencies of risks, and the vast social and economic implications of materialized risks have raised the understanding, identification, measurement and monitoring of risks to the center of everyday life in the financial sector.
Your focus is on value adding business – our focus is to make it happen. ALM Partners is an exceptional combination of knowledge of risk management challenges in financial institutions and the modern advanced but flexible technological capabilities.
The balance sheet of financial institution, its products and interest rate, liquidity and currency risks, are in our nature and have been for over 15 years – we are not called ALM Partners for nothing. In addition, we understand the impact of credit and counterparty risks to capital adequacy planning and can help with e.g calculation of expected credit risks.
ALM Partners’ strong business knowledge and modelling expertise makes them a flexible and high quality partner.
Head of Banking, S-Pankki
Risk and capital management services
Professionals and products to support your success
Our risk and capital management services provide tailored solutions to holistic management of balance sheet and operational risks. With our knowledge you can simulate and analyze policy decisions and their impact to key business figures. We excel in following core area:
- Modeling and reporting of interest rate risk (covering EBA’s interest rate risk in banking book regulation IRRBB), including hedging simulation and impact assessment
- Managing high-quality data in order to properly identify risks and to produce reliable reporting, covering Basel reforms (e.g. BCBS239) (please take a peak at our product portfolio on DW and DQA, link to product portfolio)
- Liquidity management and funding planning from the modelling of deposits and credits to optimizing liquidity reserves and internal liquidity processes and strategies (ILAAP)
- Credit risk and capital management according to European regulation CRR/CRD directives and standards, covering among others standard approach to credit risk (SA-CR), standard approach to counterparty risk (SA-CRR), internal models to credit risk (IRB) and capital adequacy assessment (ICAAP)
- Simulation and stress testing of interest rate risk as well as liquidity and capital adequacy, including EBA’s and national FSAs’ stress tests on banks
- Calculation of expected credit losses (ECL) according to international accounting standards (IFRS9)
- Solutions to hedge accounting (IFRS9 / IAS 39).
The continuous level in our services – in addition to standardized set of reports – can cover written analyzes and operational and/or strategic recommendations, that are presentable for example in executive and board level meetings. We help with implementation of new systems as well as the organization of data warehouses, data quality and analytics. The simulation and stress testing of business and risks provides valuable information to decision making bodies and can be included as a standard part of business reporting. In addition, we do validity assessments and sanity checks to current processes and reporting, and ad hoc reporting related e.g. to funding and refinancing, and replies to financial authorities’ request for additional information. We are at our best when discussing and tossing around development ideas and bringing some of the market’s best practices as examples to the discussion.
We are esteemed and experienced partner of a large international vendor FIS (link to FIS webpages) in system implementations. In addition, we are a leading expert in financial market regulatory reporting.
ALM Partners’ asset and liability services have played an important role in the planning of Säästöpankki’s business and in adjusting the interest rate risk position to meet the wanted risk appetite.
CEO, The Savings banks centre
Want to hear more? Our experts will be happy to answer any additional questions you may have about our products and services. You can submit a contact request via the form or contact our experts directly.
+358 50 548 4163