1. Asset Liability Management User Guide
  2. Oracle Asset Liability Management Process
  3. Defining Forecast Assumptions

8.16 Defining Forecast Assumptions

You can define new business assumptions in Oracle ALM through three different assumption rules, which work together to define the volume, term, and pricing level:

  • Forecast Balances
  • Forecast Maturity Mix
  • Forecast Pricing Margins

Forecast Balance rules allow you to input the new volumes that you expect to originate over the forecast horizon. The horizon over which you input Forecast Balance assumptions is determined by the Income Simulation buckets defined in your Active Time Bucket rule.

In addition to the volumes of new business defined in your Forecast Balance assumption rule, you must also define the corresponding Maturity Mix and Pricing Margins associated with the new volumes. These assumptions are managed through the Forecast Maturity Mix and Forecast Pricing Margin assumption rules.