Asset and Liability Management

From Open Risk Manual


Asset and Liability Management (ALM) is a broad description of tasks with the precise composition depending on the organization / business model. For financial institutions, ALM may encompass managing risks and exposures in some of the following areas:

Gap Management

An essential aspect of ALM is managing "gaps" (mismatches) of maturities and cashflows on either side of the Balance Sheet

Service Domain

The unit overseeing the banks asset and liability policies and position