A key component of effective asset/liability management (ALM) is managing risks. For many financial institutions, an income simulation model is a fundamental method for measuring short-term interest rate risk exposure. This infographic lays out the five steps to building an effective income simulation to help manage inherent risk to a financial institution’s earnings.
Download to learn:
- How to effectively measure risk with an income simulation model
- The five crucial steps for building the model
- Questions to consider once the simulations have been completed
This resource is part of the series ALM 101: Introduction to Asset/Liability Management.
Small business lending can generate crucial growth for a bank or credit union. For a properly functioning, safe, and growing small business loan portfolio, follow these best practices described by John Barrickman, Principal of New Horizons Financial Group, during a small business lending webinar hosted by Abrigo.
Download to learn:
- Critical elements of a loan policy related to small business lending
- What role the application process plays in a successful program
- The importance of an advisor-like relationship
Check out other small business lending resources:
- Webinar – Win More Deals: Small Business Lending Best Practices
- Whitepaper – Small Business Lending is a Big Opportunity
Adopting the current expected credit loss standard (CECL) will require a well-planned strategy and ample time dedicated to the operational and technical transition. For acquisitive financial institutions, the required efforts might be elevated, as CECL will change how public and private financial institutions account for these acquired assets. This infographic describes the four critical changes related to purchased assets under CECL, as well as a common misconception.
Download to learn:
- The impact CECL has on accounting for impaired loans
- Changes in how acquired assets are defined
- Adjustments to consider for the due diligence phase
- Common misconception related to CECL and business combinations
Asset/liability management is a crucial process designed to maximize an institution’s profitability while managing risk. The broad goal of ALM is to help produce sustainable earnings without compromising other interests of the institution. This infographic breaks down the goal of ALM into three key objectives.
Download to Learn:
- Key profitability outputs ALM measures
- Measured metrics that drive profitability
- Types of risk to consider
- Regulatory expectations
This resource is part of the series ALM 101: Introduction to Asset/Liability Management.
Adopting the current expected credit loss standard (CECL) has been a low priority for some financial institutions. However, the 2023 deadline for implementation is right around the corner. This infographic provides an overview of the vital steps financial institutions need to take for a successful CECL transition.
Download the infographic to learn:
- Critical steps to get your institution compliant
- Expectations from examiners
- Key considerations for your transition
Swimming in BSA/AML alerts? Facing an increase in alerts due to seasonality in your market? If your financial institution has a backlog of alerts created by your AML software for transaction monitoring, it can take time and more personnel to work through them. Should you hire? There are many costs of hiring for an AML compliance program to keep in mind as you make this decision. This infographic outlines some key considerations using basic assumptions as you evaluate your AML resources.
Download to learn:
- Direct costs and additional considerations when hiring an additional full time employee for your AML compliance program
- Estimated timeframes for when a financial institution sees value from a new hire
- Reasons your institution may need assistance with alert management
Discover how our advisory services team can provide the support you need. Contact the Abrigo Team to find out how our CAMS-certified investigators can provide immediate staffing assistance and alert management. Speak with an Expert.
The key 5 pillars of an AML Program are internal controls, a designated BSA officer, ongoing training, independent testing, and customer due diligence (CDD) – the newest pillar. Staying on top of BSA compliance and suspicious activity can feel overwhelming. Whether BSA departments are lacking all of the resources necessary to do the job or simply want a second opinion to take care of any blind spots, Abrigo’s advisory services can help strengthen all 5 pillars of BSA.
Download to learn how Abrigo’s Advisory Services can help:
- Ensure your BSA program has properly implemented the CDD rule
- Assess your AML software application and its compliance to regulatory requirements
- With staffing relief to assist with alerts, perform lookbacks, and more
Discover how our advisory services team can provide the support you need. Learn more.
Sometimes one (or two or three!) factor isn’t enough when it comes to risk management. Abrigo’s industry-leading BSA/AML software, BAM+, utilizes 4-factor scenario models to help you eliminate blind spots in your BSA program. BAM+ is the only solution that covers all four factors in financial crime prevention logic – artificial intelligence, behavior, rules, and typology – to allow you to act quickly when suspicious activity arises. See how our 4-factor scenario model helps you better stay on top of financial crime at your institution.
Download to learn:
- How Abrigo leverages transparent AI to help you better detect and prevent money laundering and fraud
- Ways behavior-based and rules-based scenarios allow you to discover activity outside of expected behavior
- Methods to discover potentially suspicious activity through customizable typology scenarios
Abrigo surveyed over 300 BSA and Compliance Officers, BSA Analysts, and other fraud and compliance professionals from both banks and credit unions in our inaugural FinCrime Industry Survey. This survey covered a variety of topics including the impacts of COVID-19, SAR filing statistics, cannabis banking, and other BSA/AML trends. The results show that while some industry challenges are perennial, compliance professionals are grappling with a range of emerging issues and trends.
Download to learn:
- Top obstacles reported by BSA/AML professionals
- Impact of the pandemic and related events on BSA and Fraud departments
- How your institution compares to reported SAR filing numbers
- BSA/AML trends on cannabis banking and cryptocurrency
Alignment of critical assumptions and inputs across stress testing, asset/liability management (ALM), and the calculation of expected credit losses is fundamental to a holistic view of risk management. In addition, institutions that identify and manage risk most effectively will outperform their peers in terms of financial performance while also maintaining safety and soundness. In this infographic, learn four ways financial institutions should ensure ALLL/CECL models are aligned with the risk management processes of stress testing and ALM.
