Asset and Liability Management (ALM) refers to mismatch between asset and liability exposures owing to pressures related to maturities, interest rates, liquidity concerns among others. A sound ALM framework focuses on profitability and long term viability of an institution and is essential for enhancing net worth of organizations.

CPMoksha has undertaken various projects in the area of liquidity management – including developing methods to adequately calculate a term structure of liquidity across a portfolio, business, and group of businesses. These initiatives have been developed for both the buy and sell side institutions ensuring compliance with liquidity regulatory requirements.

Our ALM and Liquidity Risk assessment offering provides a comprehensive solution to financial institutions covering the below aspects:
• Guidance around ALCO process
• Balance sheet management Incorporating funding and budgeting decisions
• Drafting and reviewing of ALM policy
• Statistical modelling for asset and liability valuations including multi-currency scenarios
• Calculation of short term funding ratio, Net Stable Funding Ratio and Liquidity Coverage Ratio as per regulatory guidelines
• Development of Liquidity Risk framework including detailed policies and procedure
• Limit setting and Stress testing for assessing impact on liquidity position