Risk Management Services
- Asset/Liability Management
Our asset/liability management consulting services will result in better identification and monitoring of interest rate risks. McCormack and Associates, inc., offers comprehensive and customized asset/liability management services to assist you in measuring, monitoring, and controlling interest rate risks.
We will assist in implementing the asset/liability management process including: asset/liability management (ALM) and investment policies, the membership of the ALM committee, the committee agenda, schedule, risk management tools and reporting requirements. Our ALM program is action-oriented and ensures that decisions are formulated, implemented, reviewed, and that appropriate communications take place within the organization.
- Enterprise Risk Management
ERM services can help provide an institution wide approach to the identification, assessment, communication, and management of risk. Our highly qualified and experienced consultants will facilitate and perform an enterprise risk assessment that identifies and assesses an organization's current risk inventory. We can also review and assess the current state of the risk management program, providing observations and recommendations for improvement.
- Independent Review of Liquidity Risk Management Processes
Liquidity risk is the potential that an institution might be unable to meet its obligations as they come due. Excess liquidity will adversely impact earnings and capital, while the impact of insufficient liquidity can range from an inconvenience to disastrous consequences.
MAi provides an independent review of the liquidity risk management process. Our review is performed using standards that will fulfill the requirements of the most recent Interagency guidance.
Proper liquidity risk management will prevent liquidity issues from impacting your bottom line or assuming a level of liquidity risk that is inappropriate for your organization.
- Independent Review of Interest Rate Risk Management Processes
Changes in interest rates can have a major impact on a bank’s earnings, capital, and economic value. We provide an independent review of the interest rate risk management process. Our review will meet the requirements of the most recent Interagency guidance. Our review covers the adequacy of related internal control systems, the appropriateness of the bank’s risk measurement systems, the accuracy of data input into the system, the reasonableness of assumptions, and the validity of risk measurement calculations, all relative to the size and complexity of the bank.
We will provide recommendations and suggestions for improving your interest rate risk management process. This review will ensure that your bank is properly measuring, managing, controlling, and reporting interest rate risk.
- Liquidity Planning
MAi has developed a comprehensive liquidity planning process that projects future liquidity needs in accordance with current regulatory guidelines.
The process includes a risk assessment and identification of contingent liquidity sources. Current and projected liquidity needs are compared to approved ranges and exceptions are identified. The system also provides “stress-testing” the bank’s liquidity position under adverse circumstances.