Asset Liability Management

PKM’s professionals are very familiar with the asset liability management functions of our financial institution clients.

Our procedures are designed to evaluate the Bank’s asset liability management policies for appropriateness as well as test actual practices for compliance, including:

  • Review the appropriateness of the Bank’s IRR models and measurement system given the nature, scope and complexity of the Bank’s activities
  • Verify the accuracy and completeness of the data inputs into the Bank’s IRR measurement system
  • Review the reasonableness and validity of assumptions and chosen scenarios used in the IRR measurement system
  • Review the appropriateness of the Bank’s ALCO/IRR policies and procedures in the current environment and make any needed recommendations to strengthen risk management
  • Interview and confirm the adequacy of personnel and their related skill sets to measure and manage the Bank’s IRR programs
  • Review your vendor prepared back testing calculations submitted to you for the IRR package and supplement with additional back testing