ALM: Manage Your Interest Rate Risk From the Bottom Up

To help you manage interest rate risk and plan and prepare for changes in rates and other market conditions, your credit union needs asset and liability management (ALM) software coupled with effective business practices.

Credit union leaders know that dynamic interest rates can have a lasting and intense impact on their institutions. These controllable risk types can affect the risk exposure to a credit union's financial position:

  • Interest rate changes
  • Liquidity
  • Credit
  • Concentration

To manage the inevitable rise and fall in rates, credit unions are seeking ways to evaluate risk exposure while increasing their income. A successful strategy requires a product that is easy to use, flexible enough to manage various risks and scenarios, scalable, and able to track progress toward goals. The ideal asset and liability management (ALM) tool makes forecasting highly accurate and effective. It also fits with the credit union's business processes, enabling employees to spend more energy on income opportunities and planning.