Asset and Liability Management
Asset and liability management (ALM) is intended to maximise shareholder value, to enhance profitability and increase capital, and to protect your company from any disastrous financial consequences arising from principle risks. In a capsule, your company intends, through sound and dynamic asset and liability management, to realize solid operating results produced against a background of a quality balance sheet.
One of the key aspects of ALM is liquidity. This element is measured in terms of having sufficient funds available at all times, to meet fully and promptly, liabilities assumed. It must be remembered, however, that too much liquidity will have a negative impact on profitability, while too little liquidity will increase the risk of insolvency and non-compliance with i.e. regulatory directives and/or bank covenants.
Contemplating the establishment of Asset and Liability Management within your company? Bula Consulting can assist in:
- ALM policy and procedures
- Preparation for ALCO meetings
- Liquidity analysis/exposure and stress testing
- Investment management (policy, procedures and analysis)
- Interest rate risk management (policy, procedures and analysis)
- Credit risk management analysis (policy, procedures and analysis)
- Price/market risk analysis (policy, procedures and analysis)
- Foreign exchange risk management (policy, procedures and analysis