Asset Liability Management: Practical Guidance on How to Navigate Through Regulatory Tsunamis in 2016
Asset Liability Management (ALM) is used by financial institutions to identify and manage potential short-term and long-term risks within the existing balance sheet when interest rates change. The ALM process provides an opportunity to maximize earnings while at the same time mitigating risk. However, the extended low rate environment and increased regulatory expectations have wreaked havoc on the ALM process.
The Knowledge Group has assembled knowledgeable and experienced professionals to provide the audience with some helpful ideas and tools to maneuver through regulatory expectations and determine appropriate ALM model assumptions which will enhance the financial depository’s asset liability management process and provide reliable results.
Key issues include that will be discussed in this webcast are:
- ALM Policy Limits
- Institution-specific ALM model assumptions
- Managing Interest Rate Risks
- Risk Analysis and Mitigation
- Asset/Liability Committee (ALCO) and Board reporting and function
- Regulatory Expectations and Best Practices
ALM First Financial Advisors, LLC
Best practices regarding institution-specific assumptions
- Why are they necessary?
- What are some methods that could be employed to determine institution-specific assumptions?
- What to do with the results of the analysis, and why you still need to back test and run alternative scenarios?
Being prepared for the next exam
- What should be in place in your interest rate and liquidity risk measurement processes
ALCO/Board reporting and function
- Is the ALCO and/or Board provided timely and pertinent information?
- What is the ALCO doing with the information?
- Is the ALCO forward looking and what does that mean?
- Is compliance to ALM Policy guidelines reported and exceptions explained?
- Is the Board well informed and does the Board have some understanding of interest rate risk concepts?
Who Should Attend:
- Bank and Credit Union Senior Executives
- ALM Model Personnel
Michelle Huempfner is a manager in Wipfli LLP’s financial institutions practice, providing asset/liability management (ALM) services to financial institution clients. These services include interest rate risk and liquidity risk process validations and consulting. Her specializations includes interest rate risk process independent reviews (validations), ALM policy consulting, ALM model consulting, Asset/Liability Management Committee (ALCO) and board consulting and liquidity stress testing and consulting.
Michelle Huempfner is a manager in Wipfli LLP’s financial institutions practice, providing asset/liability management (ALM) services to financial institution clients. …
Kevin Kirksey has been with ALM First for 6 years and now serves as Managing Director, Strategic Solutions Group. His responsibilities include overseeing merger valuations, ALM model validations, many hedging strategy relationships, and he participates in general product development. He also serves as the Chief Compliance Officer for the firm.
Previously, Mr. Kirksey worked on Goldman Sachs’ mortgage trading desk, where he analyzed whole loan trades and securitizations and performed mortgage valuations for various capital raises, mergers, and IPOs.
Mr. Kirksey received a bachelor’s degree in economics from Davidson College in Davidson, North Carolina.
Kevin Kirksey has been with ALM First for 6 years and now serves as Managing Director, Strategic Solutions Group. His …
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About Wipfli LLP
With more than 1,500 associates, 32 offices in the United States and two offices in India, Wipfli ranks among the top 25 accounting and business consulting firms in the nation. For over 85 years, Wipfli has provided private and publicly held companies with industry-focused assurance, accounting, tax, and consulting services to help clients overcome their business challenges today and plan for tomorrow. Our clients include manufacturers, construction companies, contractors and developers, real estate companies, health care organizations, financial institutions, insurance companies, nonprofit organizations, units of government, dealerships, and individuals. Through the firm’s membership in Allinial Global, an association of legally independent firms, Wipfli can provide efficient, cost-effective and comprehensive services to every client regardless of size or location.
About ALM First Financial Advisors, LLC
ALM First is a leading, trusted strategic partner for financial advisory services. With approximately $18 billion of investments under management, ALM First is an SEC-registered investment advisor, acting as an unbiased third party, offering commission-free, fee-based services to more than 200 banks and credit unions across the country. Services include asset liability management, investment and balance sheet advisory, hedging strategies and execution, ALM validations, stress testing, merger valuations, MSR valuations, training and education, and other additional services.
Financial institutions have relied on ALM First’s outstanding expertise in formulating strategies to manage risk and enhance return since 1995. Whatever challenges you may face, rely on ALM First’s expertise to create a sound financial foundation built for today and tailored for tomorrow.