ALM School

The Baker Group pioneered Asset/Liability Management (ALM) more than forty years ago when we developed the first computer based ALM program designed specifically for community banks. Since then, we have spent four decades educating financial institutions how to effectively use ALM strategies to manage risk and maximize performance. The Baker Group has presented hundreds of seminars and conferences across the country and now we have brought that history of educational experience to an Asset/Liability Management School designed specifically for members of the ALCO and those needing to learn the fundamentals of ALM. The Baker ALM School will give attendees the knowledge to better understand the “who, what, why, and how” of ALM and the ALCO process.

What You Will Learn

• Fundamentals of asset/liability management including what it is and why we do it
• Understanding the impact of the economy, monetary policy, and interest rates on the earnings and capital of the institution
• Regulatory expectations to ensure you are always in compliance with the latest guidance and prepared for your next exam
• Best practices for developing an effective ALCO process including appropriate policies, procedures, and risk limits
• Practical methodologies and recommendations for how to develop assumptions that are institution specific and regularly reviewed, stress-tested, and back-tested
• Review of the most important assumptions available in most models and which ones have the greatest impact on outcomes including:
  – Betas, rate sensitivities, and lags
  – Decay rates, NMD average lives, and maturity distributions
  – Discount rates and reinvestment rates
  – Prepayment rates
  – Rate scenarios including instantaneous vs. ramped and parallel vs. non-parallel
• Risk mitigation strategies for managing interest rate risk
• Incorporating investment portfolio management into asset/liability management
• How to develop an effective liquidity risk management process including forward looking dynamic cash flow modeling, stress testing, and contingency funding plans

Who Should Attend

This school is designed for Presidents, CEOs, CFOs, and members of the ALCO committee. Directors and anyone else involved in the asset/liability management process will also benefit from the Baker ALM School.

Call Skoshi Heron at 405.415.7200 for more information.