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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.