OUR SERVICES
- portfolio optimization
- quarterly reporting and re-balancing as necessary
- review of ALM conceptual framework, existing strategies
- allow company Life to free up resources devoted to ALM
- ensure ALM best practices are being performed
- in-house training as desired
CONSULTING
By determining which risks provide an attractive risk/return profile and identifying which risks should be avoided or hedged, companies can exploit risk opportunities. Effective use of ALM can be used to gain competitive advantage. While many financial institutions have been effective at implementing ALM at a tactical level, the focus has tended to be on risk mitigation.
When using ALM as a strategic decision making tool, the goal of ALM is not necessarily to eliminate or even minimize risk. ALM is viewed as a framework to achieve the financial objectives of the organization subject to its risk tolerances and constraints.
Nexus Risk Management Inc. helps companies implement ALM frameworks and formulate innovative strategies to gain competitive advantage. Specific service offerings are described below.
ALM Strategies
Once the ALM conceptual framework is established, Nexus Risk Management Inc. works with financial institutions to formulate strategies to achieve the financial objectives subject to the specified risk tolerances and constraints.
Independent Reviews
Periodic ALM best practice reviews help companies benchmark their ALM capabilities with observed industry best practices.
Independent risk assessments are a vital part of due diligence and ensuring that the risk exposure is properly measured and accurately reported.
Product Reviews
ALM is an essential part of pricing and product design. Formulating innovative ALM strategies can help companies gain competitive advantage.
ALM Framework Implementation
Beyond risk mitigation, ALM can be used as a strategic decision making framework to simultaneously manage financial risk exposure and achieve the companies financial objectives.
Hedging Solutions
Execute dynamic hedging strategies for complex embedded derivatives in the liabilities.
Portfolio Optimization and Asset Management
Contact us for more information.