ALM Service Package

Nexus Risk Management launched its ALM Service Package in response to the demand from companies who are not able to allocate sufficient resources to the ALM function or stay on top of industry best practices in the area of ALM and Enterprise Risk Management. The ALM Service Package is a complete solution that allows companies to retain control of the risk management of their business by providing sophisticated tools, expertise, training and assistance needed to perform ALM on an on-going basis.

ALM Framework Implementation

We develop a best practices ALM conceptual framework that identifies the financial objectives, risk tolerances, constraints and surplus management philosophy and ensure that this is integrated with ERM so that ERM can be deployed as a strategic-decision making framework to run the business. Key deliverables in this initial setup phase include drafting an ALM Policy Statement and Procedure Manual.

Nexus Risk Platform

We provide the software tools to quantify the risk exposure and execute ALM strategies. Nexus Risk Platform is a powerful software tool to manage the risks associated with a given set of asset and liability cash flows. Nexus Risk Platform comprises a suite of modules and utilities to enable companies to execute risk management as a strategic-decision making framework to run the business and achieve the overall financial goals subject to the company's risk appetite and specific risk tolerances.

Modules are available for executing ALM strategies, dynamic hedging, and calculating economic capital. Utilities include a series of financial models, interest rate models and economic scenario generators. Nexus Risk Platform employs an SQL database and is customized for each client to enable seamless integration with existing actuarial and asset software. Nexus Risk Platform is fully automated and when connected to a live market feed such as Bloomberg it provides real time quantification of the risk exposures.

Companies can test trades and instantaneously see the impact of propose trades or strategy on their risk position.

Advanced reporting and analytics including an ALM attribution analysis that allows companies to decompose the change in economic surplus over the period and view how well the various first and second order risk metrics predicted the change in due to movements in the yield curve.

On-Going ALM Monitoring and Reporting

Every quarter we independently monitor the risk exposures associated with the assets and liabilities and produce an ALM report and attribution analysis that we reconcile with the results produced by the client. We are available to explain all results and participate in ALM Committee meetings.

This ensures that the company is able to independently manage their risk with minimal resource commitments while ensuring that they receive expert assistance and peer review.

Formulating and Executing ALM Strategies

By keeping a clear focus on risk at all times and making informed risk decisions, companies can maximize stakeholder value. Nexus Risk Management helps companies implement risk frameworks and formulate innovative strategies to gain competitive advantage.

Portfolio Optimization and Asset Management

On top of the services provided with the ALM Service Package Nexus Risk Management can also provide risk optimization and asset management services.

ALM Service Package includes all ALM services:

  • ALM Framework Implementation
  • Nexus Risk Platform software
  • On-going ALM Monitoring and Reporting
  • Formulating and Executing ALM Strategies

We charge a quarterly fee for the ALM Service Package.

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