Asset Liability Management (ALM) consists in managing risks arising from mismatches between assets and liabilities of financial institutions.
ALM concerns involve interest rate risk, liquidity risk, currency risk and capital management.
The ALM scope covers both a prudential component (management of all possible risks and rules and regulation) and an optimization role (management of funding costs, generating results on balance sheet position), within the limits of compliance (implementation and monitoring with internal rules and regulatory set of rules).
Act-unity can provide you advices and help with the building and the use of your own ALM model. These models make use of the most sophisticated mathematical techniques and actuarial domains. Modelling complicated assets stochastically and applying ALM rules allow companies to set up a real ALM governance.