Asset & Liability Management

Financial institutions must have robust Asset Liability Management (ALM) process is place to control balance sheet risk due to diverse and large assets. Financial institutions may face significant interest rate risk (IRR) from mismatches in maturity and repricing profiles. IRR exposure, alongside credit risk, can be a major source of loss vulnerability.

Our ALM/ IRR audits examine governance, control issues, and key modeling aspects, ensuring data integrity, accurate assumptions, and realistic results. We assess balance sheet composition, gap analysis, and past earnings patterns for thorough evaluation.

Managing liquidity is critical for financial stability and growth. A Liquidity Risk audit can provide valuable assurance to the Board, even though it's not as regulated as IRR audits. If liquidity concerns are on the radar, periodic audits are recommended.

Capital management is crucial for long-term survival. A Capital Management audit evaluates the effectiveness of capital determination, contingency recognition, and reporting for accounting and regulatory purposes.

For investment portfolios, our Investments audit covers governance, credit analysis, purchases, sales, and compliance with accounting standards. We also conduct audits of Bank-Owned Life Insurance (BOLI) programs for due diligence and reporting requirements.

AuditOne assigns specialized auditors with deep expertise in CFO roles, regulation, and market risk. We offer both audit and advisory services.

David Kellerman, ALM Practice Director, has 30+ years in banking, including as a CFO. He holds a CPA and an MBA from Ohio University.