1. Asset Liability Management User Guide
  2. Introduction to Oracle Asset Liability Management
  3. Overview of Oracle Financial Services Asset Liability Management
  4. Oracle Asset Liability Management Key Benefits

3.1.1 Oracle Asset Liability Management Key Benefits

Oracle Financial Services ALM is designed to model balance sheets under a variety of rate environments. Oracle Financial Services ALM functionality uses several key concepts and has evolved from the continual iterations of building simulated management processes. The basis of Oracle Financial Services ALM functionality includes:

  • A wealth of output information. OFS ALM calculates and stores a variety of financial risk indi­cators including, VaR, EaR and related probability distributions; static and dynamic market value, duration and convexity; static and dynamic Gaps based on both repricing and liquidity bucket definitions; income simulation capabilities.
  • Rigorous Calculations. OFS ALM is designed to operate on transaction-level data, using Ora­cle's highly accessible and flexible financial services data model. Each account, as well as all fore­casted new-business activity, is modeled independently on a daily cash flow basis.
  • A flexible time horizon and free-form timing bucket increments for reporting are critical to meet­ing the wide range of forecasting requirements of financial institutions. Unconstrained chart of accounts definition is a basic requirement of effective modeling.
  • A structured process for defining and controlling assumptions is critical to any successful model­ing process.
  • An unconstrained batching of scenarios, with flexible assumptions sets, is required to achieve an effective and efficient analytical process.