Monday 9 September 2013

Adopting The Right Asset Liability Risk Management

Asset liability management (ALM) is the process of understanding, monitoring and managing assets and liabilities of an organization. Earlier, ALM strategy was tailored to manage the risks on liabilities of banks, like: - deposits, annuities, life insurance policies and striking a balance between all these and their assets in the form of real estate, loans, bonds, etc.

Currently the scope of activities of asset liability risk management has increased manifold. Apart from considering the trading authorities, today it also addresses the risks (foreign exchange and others) of several non-financial firms as well.

A large number of companies and organizations use the techniques of ALM to combat different situations, like: - commodities risks, foreign exchange risk, liquidity risk and interest-rate exposures.

Since the global financial market is rapidly changing, it is important for trading and non-trading firms to consult experienced financial market advisors who are aware of the current market dynamics and can offer required training and consultation to several banks, pension funds, asset managers and other financial institutions.

For example: - risks faced by asset managers are different from those of fund managers, investment banking firms, corporate banking authorities, private banking, private equity and pension funds. Hence, the degree of asset liability risk management varies for projects, temporary staffing and recruitment assignments. 

Total Solutions is one of leading financial services providers in Europe. Our expertise involves, serving the requirements of the Front Office, the Middle Office, Back Office, Risk, Compliance, Finance/Interim and Project Management.

To find out how we may help you, please Contact Us today!