How It Works
A/L Reporter adapts the core technology of the sophisticated Risk Analytics ALM Model to a product that is designed and priced specifically for small credit unions. Through a service-bureau approach, the software provides dynamic income simulation projections for net interest income as well as NEV under nine different rate stress scenarios. Reports are compiled from the 5300 Report and AIRES data with limited additional information from the credit union. A/L Reporter clearly demonstrates to credit union managers how changes in interest rates and the resulting changes in the cash flows of their balance sheet instruments affect future earnings and the value of their capital.
HOW IT WORKS
Balance Sheet Manager (BSM), an add-on to the FIMAC Solutions Risk Analytics ALM Model, lets you immediately create unlimited “what-if” scenarios. This optional module gives you a quick, powerful, and accurate measurement of the impact balance sheet management decisions will have before they are implemented! To create the scenarios, start by installing a new data set from your updated ALM/interest rate risk management report. The new data set includes all current balance sheet, cash flow, market rate, and securities information—everything that went in to the production of your institution’s interest rate risk management reports. Then, create and run the scenarios on your own PC with BSM’s Windows-based software. Create, save, and share as many different scenarios as you like. With BSM, you can test your balance sheet management strategies and ideas before you implement them, allowing you to efficiently test multiple ideas or variations, and select the strategy that offers the optimal risk and return profile.