Risk Analytics© ALM Model©

Risk Analytics ALM Model

HOW IT WORKS

The Risk Analytics ALM Model provides financial institutions with an understanding of how changes in interest rates—and the resulting changes to the cash flows of their balance sheet instruments—affect future earnings as well as the value of their capital. This cash-on-cash dynamic income simulation and net equity value model provides results for nine interest rate stress test scenarios of up to 400 basis points. With no software to purchase this model provides the functionality of the most expensive ALM models—at a much lower cost and with far less time and effort. Our professional staff works with you and your IT department to automate the instrument level data collection process and our Relationship Managers assist you with any questions regarding data input or the initial results

KEY FEATURES

The Risk Analytics ALM Model has several important features providing an accurate modeling experience for todays ALM Manager. The tools provide:

  • User-controlled processes, including modeling assumptions and rate stress tests
  • Independent securities pricing and cash flow analytics from nationally recognized third-party sources to accurately forecast earnings and price volatility under all your rate stress scenarios automatically embedding those cash flows in the model so you don’t have to
  • Easy installation and setup with a relationship manager to help you through the process
  • Graphical displays of key information; choose from many charts and graphs

Software Spec

SEVERAL KEY BENEFITS MAKE RISK ANALYTICS ALM MODEL THE INDUSTRY-LEADING ALM/IRR MODEL:

  • ·         Efficient use of valuable internal staff and system resources
  • ·         Quick turnaround time—usually just a few hours
  • ·         Unmatched customer service
  • ·         No need to pay for securities pricing and cash flow analytics elsewhere or to have the systems and staff to produce them internally
  • ·         No expensive up-front costs for software purchases \
  • Easy to understand report output, with the ability to drill down to the details if needed

The Risk Analytics ALM Model is a hybrid S.A.A.S model. We work with over a hundred different core processors and provide you with an extract file that you use to generate your information into our system once you set your assumptions and check your data you transfer that information to our calculating servers where it matches off with the securities data and calculates your reports. No additional servers or computers to buy, also any updates to the software are handled on our servers so you are always working with the latest version. When your reports are completed you simply login and download your reports.

With over 20 years of experience our Risk Analytics ALM Model is a cash-on-cash dynamic income simulation and Present Value of Equity (net equity value) model that provides results for nine interest rate stress test scenarios of up to 400 basis points. The tools provide:

 

  • User-controlled processes, including modeling assumptions and rate stress tests
  • Independent securities pricing and cash flow analytics from nationally recognized third-party sources to accurately forecast earnings and price volatility under all your rate stress scenarios
  • Easy installation and setup
  • Graphical displays of key information; choose from many charts and graphs

 

The report set includes:

  •  Executive Summary – designed for board members and ALCO
  • Full disclosure of all modeling assumptions – for management, regulators, and auditors
  • Back Testing Report – to assess the model’s accuracy over time and interest rate changes
  • Variance Report – to quickly spot any significant changes to input or results
  • Supplemental Report – allows the interested user to dig into the detail as deeply as necessary to find the answers
  • Fair Value Report – satisfies the FAS 107 disclosure requirement without incurring additional audit expense
  • Optional reporting is available for Sources of Risk and Alternate Rate Scenarios.

Our data capture process is designed for efficiency and accuracy. With a robust data conversion and validation process, most modeling data can be imported and then validated in a matter of minutes. Customers typically can complete data inputs in one to four hours and receive completed reports within one business day.

AFFORDABLE POWER WITH LESS TIME AND EFFORT

Our data capture process is designed for efficiency and accuracy. With a robust data conversion and validation process, most modeling data can be imported and then validated in a matter of minutes. Customers typically can complete data inputs in one to four hours and receive completed reports within one business day.

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