ALARMSTM is a comprehensive Asset and Liability Risk Management System. This risk management software provides a full analysis and measurement of interest rate risk using a variety of complimentary best practice measures such as Value at Risk, PVBP and gap reporting. Coupled with a flexible reporting functionality, it is able to provide your organisation with a comprehensive and clear understanding of its exposure to movements in interest rates.
|
The ALARMSTM software provides best practice asset and liability risk management without the expenditure required to maintain a comprehensive in-house risk management and reporting system. ALARMSTM offers:
|
Learn more about ALARMS: |
Key Features of the ALARMS Software
Your access to ALARMS either via the web or as an outsourced service covers the following key features:
- Interest Rate Risk Analysis and Measurement using a variety of analytics - Value at Risk, PVBP, gap and net interest margin forecasting.
- Scenario analysis to provide ‘what if' analysis for changes in product volumes, hedging levels or rates.
- Net Interest Margin analysis including forecasting and stress testing.
ALARMS users also get more from this system through these inclusive services:
- Complimentary participation in Protecht's industry-leading annual mutual ADI interest rate risk
- Quality assurance review of your interest rate risk management policies and procedures.
- Risk management advice and support on all interest rate risk topics such as rate hedging, stuck call funds analysis and prepayment analysis to assist in the ongoing development of your interest rate risk capabilities.
Benefits of using our Asset and Liability Risk Management System
Designed by Protecht's directors, ALARMS generates asset and liability risk reports quarterly or monthly using data supplied by clients through a joint arrangement with Oakvale Capital Ltd, Australia's largest independent financial risk management firm. ALARMS users enjoy the following benefits offered by this sophisticated risk management system:- Client management can focus on interpretation of the results, rather than the production of the reports
- Low cost compared to in-house system implementation and the associated resources required for on-going support
- System maintenance and system training expenditure is not required
- Avoidance of key person risk in the risk management process
- Automatic access to system upgrades at no extra cost
- Access to a team of risk management experts
- Compliance with regulatory requirements
- Benchmarking your interest rate risk management against industry peers
The ALARMS Modules in Detail
Currently used by over 30 financial institutions in Australia on a bureau basis, this cost-effective and strategic management tool makes it easy for banks and corporates to identify, analyse, evaluate and report their interest rate and liquidity risk through each of its first-rate modules:
Interest Rate Risk Analysis and Measurement Module
Value at Risk (VaR)
The model uses a variance-covariance approach to measure Value at Risk. Limits and triggers as a percentage of capital can be recorded to facilitate assessment of VaR against capital.
Sensitivity analysis
PVBP is calculated for a 1 basis point shift down in the curve and is reported in gap tables and charts. Movement from the prior period is also reported to facilitate understanding of changes in the book profile month on month or quarter or quarter.
Gap Analysis
Asset and liability principals are mapped to user specified time buckets and reported as tables or charts along with movement tables highlighting any change from the prior reporting period.
Net Interest Margin Simulation Module
This online tool enables organisations to run in-house net interest margin simulations at any level of product granularity. Its main features include:
- Configuration of product codes consistent with core banking platform.
- The ability to forecast movements in margin.
- The ability to create plus/minus rate and growth scenarios.
- Application of one or many scenarios to a base case forecast.
- Output in Excel of net interest margin at an aggregated level or individual product level.
More Information
Learn why both large and small financial organisations rely on the ALARMS solution to manage their interest rate risk by downloading the ALARMS brochure (165kb) and getting in touch with This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
