As an independent ALM provider, R2Metrics is one of the few firms able to provide a 3rd party parallel ALM simulation, utilizing our proprietary model, BankRisk and comparing the forecasted change in asset yields, liability costs, and net interest margin to your primary ALM.
Our clients have found the comparison to be beneficial in flushing out modeling discrepancies, inaccurate model assumptions, and erroneous reporting for each of the banks we have performed analysis. In each case, there have been significant errors found and corrected, even after the bank had received passing marks from internal and external auditors. Our analysis is much more in depth and likely to “trap out” modeling problems that can lead to an inaccurate view of future risk. R2Metrics will provide a summary opinion letter with supporting tables detailing modeling discrepancies as well as the likely causes of these discrepancies and suggestions for corrective action.