In the current financial climate, Asset and Liability Management (ALM) has become a cornerstone of Risk Management for banks and insurance companies. ALM constitutes a continuous management process that supplies financial strategies to firms for management of their assets and liabilities. This method aims to aid companies in achieving their financial goals within predefined constraints and understanding the risks involved.
This book introduces ALM in the context of banks and insurance companies. Although this strategy has a core of fundamental frameworks, models may vary between banks and insurance companies because of the different risks and goals involved. The authors compare and contrast these methodologies to draw parallels between the commonalities and divergences of these two services and thereby provide a deeper understanding of ALM in general.
This discussion is of interest to financial and risk managers of insurance companies and banks, particularly dealing with ORSA (Own Risk Solvency Assessment) techniques, economy students or masters and people involved in Solvency II for insurance companies and in Basel II and III for banks.