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Organ­iz­a­tional Setup of an ALM Func­tion

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.

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

Profit and Cost Optim­isa­tion Process
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