FRSGlobal, the only global provider of risk and regulatory reporting compliance solutions on a unified platform with coverage for over 40 countries, today announced the availability of a configurable Asset & Liability Management (ALM) solution for U.S. banks.
The FRSGlobal ALM solution is extremely flexible and easy-to-use. Firms can begin to manage their ALM risk using a variety of sophisticated methods, including dynamic simulation modelling and stress testing, by following a logical and well defined six step process.
The FRSGlobal ALM solution enables banks to put in place sound practices and processes to manage their ALM and liquidity risk that are in line with the United States interagency guidelines issued on March 17, 2010.
The guidance outlines the process that financial institutions should follow to identify, measure, monitor, and control their funding and liquidity risk. The guidance emphasizes the importance of cash flow projections, stress testing, and a well-developed contingency funding plan for measuring and managing liquidity risk.
Richard Ferrari, Vice President - Americas, FRSGlobal, commented: "In light of the recent financial crisis U.S. banks are re-evaluating the way that they currently model their ALM risk. Many small and mid-size banks are currently outsourcing their analysis of ALM risk to an advisory firm or using internally developed Excel spreadsheets. They are finding that these methods are not adequate given the increased rigor and frequency that the regulators expect for the analysis of ALM risk. FRSGlobal provides banks with the ALM risk management capabilities that they need to be successful in today's financial environment."