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.