RiskTech Forum

Global ALM Practices Survey

Posted: 19 April 2008  |  Source: SunGard

The demands of today’s marketplace will require a more proactive and integrated view of balance sheet risks and returns; measuring the efficiency of capital utilization subject to a firm’s consolidated risk and return appetite remains of utmost importance for banks of all size. The constant evolution of balance sheet risk management is quietly occurring in banking institutions across the globe. Though perhaps not the stuff of newspaper headlines, there are interesting developments and challenges afoot in the practice of asset/liability management (ALM). SunGard’s annual Global ALM Practices Survey is designed to highlight these for the international banking community.

In the findings of our most recent survey – fielded during the first quarter of 2007 – we can observe that ALM structure and ALCO practices are shifting from finance-focused to risk-based. However, current practice is still dominated by a focus on earnings and deterministic interest rate environments. We also see causes for caution as well as encouragement.

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