Fraunhofer Institute for Industrial Mathematics ITWM
The focus of the Asset Liability Management (ALM) is to optimize the balance sheet by looking at assets and liabilities in terms of returns, risk requirements, liquidity obligations, and so on. ALM is a key part of how banks and insurance companies run their businesses.
With the increasing demands on risk management, ALM is becoming even more important. We develop the software program »ALMSIM®« to support strategic management and investment decisions based on a simplified accounting model.
Background
With increasing demands on risk management and the challenges posed by the low interest rate environment, the need for stochastic simulations of balance sheet structure management has grown in recent years. Assets and liabilities must be calculated simultaneously on the basis of an accounting model. An evaluation and control module enables the monitoring and management of balance sheet items.