INDEPENDENT ASSESSMENT SERVICE
Rehearse tomorrow, today...
Our Independent Assessment reveals the long-term risks to earnings and net worth in your financial structure using our advanced simulation technology.
We provide an early warning system by modeling your assets, liabilities, operating expenses and fee income against history-based rate environments and yield curves experienced since the 1950s. In doing so, you can see long-term risks that may exist in your financial structure if any of these environments come back for a repeat performance. Armed with this knowledge, you're better equipped to make decisions about your risk/return tradeoff before the risk actually materializes. An excerpt graph of historical government interest rates since the 1970s, which demonstrates the broad range of environments experienced, appears below.
Expert Consultative Assistance
With each assessment, we review with you, your senior management and, optionally, your board:
- How the potential for long-term risks to earnings and net worth have been changing, and why
- Sources of risk, risk limits and earnings goals
- Trends we are seeing from our work with hundreds of credit unions
- Effective balance sheet risk management strategies
Regulatory Issues
Regulatory issues in the area of asset/liability management are easily addressed. We also welcome the opportunity to directly answer examiner questions about the decision information provided.
Clients have told us that they value our relevant and reliable A/LM services because:
We ask the right questions and determine unique assumptions…
"I feel better knowing that you helped us think through our assumptions about pricing and member behavior instead of just using blanket assumptions. We didn't even think to consider some of the questions you asked about our business and environment."
We link strategy with financial performance…
"Every time you review our credit union's results with us, you help us think through and test business strategy ideas as well."
We don't mix new business goals with existing risk…
"You keep us honest by separating our goals for new business from our current business. Seeing the two separated helps us see if we are relying too much on future decisions to offset risk."
We go beyond 300 basis point rate shocks…
"Rates have changed more than 300 basis points several times in the last decade, and I feel more secure knowing what interest rate environments would cause my credit union to experience negative earnings or to not be Well Capitalized."
We are completely independent…
"It's nice that you don't sell investments—I don't have to worry that our results will be biased just to get a higher commission or fee."
Contact us for more information.