ALM Strategies in an Uncertain Interest Rate Market

Developing an ALM strategy that is riskless, regardless of what rates do, is virtually impossible and not advisable. What is possible is to develop ALM strategies that are optimized for the rate environments for which decisionmakers choose to prepare. This interactive session will focus on how to identify key components of optimization, such as earnings sustainability, net worth, asset growth, reliable and affordable deposits, asset value fluctuations, relevancy and appetite for risk. Equally important, this session will help attendees link these key components to strategy and measures of success, as well as effectively communicate these links to non-financial decision-makers. Session topics will include:

• Learning an effective approach to determining optimization components that are relevant to strategies and measures of success to promote more-productive conversations with other members of your team as you connect ALM strategies with the credit union’s overall strategies and measures of success
• Reviewing a process to readily identify risk/return tradeoffs that reside in the financial structure. This includes illustrations to help decision-makers paint a picture of the interconnectivity and potential conflicts of the key components they are looking to optimize
• Concepts and ideas that help bring clarity and actionable next steps to the decision-making process