Development of a management framework and the organizational setup for an integrated ALM function, incl. approaches for liquidity and interest rate risk management, as well as alternatives for the funds-transfer-pricing (FTP) methodology. In addition, a feasibility study of the IT infrastructure was carried out and a high-level implementation plan for the identified alternative options was developed.
Organizational Setup of an ALM Function
Key Deliverables
Methodology for liquidity and interest rate risk management
Alternatives for organizational setup of the ALM department
Cost estimation & high-level implementation roadmap
Roles covered
Business Analyst
Project Manager
15 Stakeholders
Treasury
Corporate Clients
Legal & Compliance
Risk
Financial Accounting
IT
Key Benefits
Improvement
2 FTE Team
Consultant, Manager & Partner
4
Alternative Options
Four possible ALM-setup alternatives
Key Activities
2020 - 2021
Project duration: 18 months
Project Set-up
Definition of governance, milestones, risk & dependencies, as well as key stakeholders matrix, and elaboration of a project plan
Approaches Definition
Establishment of assessment criteria, gathering stakeholders input, and analysis of refinancing options based on qualitative and quantitative factors
Approach Assessment
Establishment of assessment criteria, gathering stakeholders input, and analysis of refinancing options based on qualitative and quantitative factors
Feasibility and Cost Estimation
Evaluation of system requirements, estimation of implementation costs, outlining required effort and adjustments for each approach, and development of a high-level implementation roadmap
Recommendation
Preparation of decision-making materials and presentation of recommendations