Skip to main content

5 Steps to Building an Effective Income Simulation

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.

Looking for Banker’s Toolbox? You are in the Right Place!

Banker’s Toolbox is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to Banker’s Toolbox Community Online.

Make yourself at home!