Implementation of ALQUID in multiple geographies of a global entity
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ALM model implementation into a global entity
A global entity with presence in multiple continents and geographies which has different ALM models in its South American subsidiaries under a heterogeneous ALM tool scheme.
The goal was implementing a homogeneous ALM model for the different subsidiaries in South America which integrates the vision of Interest Rate Risk, Liquidity Risk and FTP and meets both the local regulatory and management requirements of the Group
Challenges
- Different local regulatory and management requirements in each geography.
- Data supply unavailable at optimal granularity.
- Differences in behavioural patterns.
- ALM tools with limited parameterization capacity, “black box”, lack of multi-user or corporate access capabilities.
- Independent process and calculation for Interest Risk, Liquidity Risk and Financial Planning.
- Limited and manual reporting.
Approach / Strategy
Defining a global ALM model that meets local and global requirements, supported by:
- Definition of a common data layout for a granular data supply.
- Definition of a data transformation and enrichment process supported by dictionaries that contain regulatory and business logic.
- Definition of a governance model that allows collaboration and ensures the same process and solution for the Finance and Risk areas.
- Definition of parameters, projection structure and behavioral and reporting models.
- Parameterization and set-up of ALQUID as an ALM solution
ALQUID Benefits
- Increased coverage -> In addition to Interest Rate Risk, the model and the solution allow users to perform the required calculations for Liquidity Risk.
- Multi-user & Multi-model -> Finance & Risk users, both at the local and corporate level can access the platform and collaborate together simultaneously.
- Greater Agility -> 70% reduction in calculation times.
- Model evolution -> Agile parameterization of more advanced behavioural patterns, making the process transparent to the user at all times.
- Thorough and Flexible Reporting -> Thorough coverage of local and global reporting requirements, allowing modifications based on user needs.
History -> Users have immediate and autonomous access to historical information.