Our ALM process produces an overall risk/return assessment that is presented in quarterly on-site meetings to develop actionable strategies.
Our strategic focus:
Obtaining an optimal risk/return profile is challenging. Once achieved, how do you maintain strong earnings? How do you prevent a decline in earnings or shift to unacceptable risk?
How do you fix an existing problem in the most prudent manner?
- Improve earnings
- Reduce IRR
- Address regulatory pressure
How do you enhance performance?
- Increase Earnings
- Leverage Capital
- Introduce New Products
- Test Pricing Sensitivity
Our ALM service integrates your unique characteristics and goals with EPG’s expertise to identify your true risk profile.
Our process identifies and measures all the risk factors that comprise overall interest rate risk:
- Basis Risk
- Repricing Risk
- Option Risk
- Yield Curve Risk
Through simulation analysis and stress testing, we are then able to quantify the bank’s comprehensive market and liquidity risk profile.
Trade Off Assessment
We identify and discuss whether your institution is appropriately compensated for risk.
We help ensure that risk is not only managed, but optimized from a return perspective.
Our ALM process helps assure that you are positioned for full compliance.
The regulatory guidance that outlines the appropriate procedures for IRR management is woven into our ALM process. Stress testing, alternate scenarios, back testing and proper reporting procedures are all considerations encompassed in our process.
Policy Development & Revision
We will ensure that your ALM policy provides guidance and fully complies with the statement of policy
We will assist your institution in preparing for upcoming regulatory exams through education, documentation and policy review.
As banking becomes more complex with small margin for error, Board of Director understanding for ALM issues is increasingly important. Our user-friendly, graphic reports help facilitate explanation and Board education.
EPG can provide an independent review and assessment of your institution’s ALM process as required by regulatory agencies.