The Keys to an Effective ALCO Process

Sessions

Following a year of unprecedented challenges and “new normals” we find ourselves in some familiar territory having to look for new ways to increase (or just maintain) earnings and manage the risk within our balance sheets. COVID changed the rules, but as bankers, we know we need to take a look in the mirror and make some changes ourselves in order to come out of this stronger than we came into it.

In order to become one of those “high performing” institutions it starts with turning ALCOs into a “Profit Center”. Making better use of the models, data, assumptions and reporting you have at your disposal, and including the right people in the decision making process to turn that information into strategic benefit!

The environment has made it more important than ever to review the assumptions that go into your model, analyze the right scenarios, get a better understanding of customer behavior patterns and most critically take the right action for your bank.

Maintaining the status quo may have worked in the past, and it may get you through your next exam, but do you have the peace of mind that you are doing all you can to monitor potential exposures and optimize earning potential? Now is the time to make sure everyone and everything is working as intended and heading in the right direction.

During this session, participants will gain valuable insights through discussion and case studies of how deterimental some practices can be to your bottom line and the success many institutions are having by promoting a collaborative culture at ALCO, improving the quality of risk model inputs and outposts to make the best decisions for their banks. Turning your ALCO into a true Profit Center takes dedication to the process but the results are game-changers for your bank!

Learning Objectives:

  • What scenarios and alternative simulations you should be including in your modeling
  • The importance of review and updating of key assumptions and stress testing
  • The impact of COVID on the risk management process
  • Best in class reporting to facilitate discussion and decision making

SPEAKER:
Mark Haberland
Managing Director
Darling Consulting Group