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Strategic planning can excite, galvanize and motivate teams; however, even the best strategic plans are worthless without great execution. Teams often find themselves scrambling. What sounds doable while isolated from the everyday whirlwind can seem insurmountable post-strategic planning. A solid process surrounding strategic planning can contribute greatly to successful execution. It’s no secret that strategic […]
There is some debate regarding reasonable methodologies and approaches for loan discount rates for an NEV analysis. Discounting to the current offering rate, to a comparable asset-backed security rate and including a credit risk spread are just a few of the approaches that are debated. Regardless of the assumptions approach, the values need to make […]
Budgeting season is around the corner. Credit unions will spend valuable time and resources over the next few months developing budgets that achieve ROA and net worth goals. As the budgeting process moves forward and nears completion, decision-makers should ask: What happens to our interest rate risk if the budget comes true? Budgeting helps credit […]
Recently, we blogged about interest rate risk (IRR) modeling methodologies that can give credit unions a false sense of security. (See blog titled “Is Your Risk Methodology Giving You a False Sense of Security?” Posted on July 3, 2014.) We noted that traditional income simulation seldom incorporates the risk of non-maturity deposit withdrawals or member […]