3.1 Overview of Oracle Financial Services Asset Liability Management

Oracle Financial Services Asset Liability Management (OFS ALM), helps financial services institutions measure and monitor Interest Rate Risk, Liquidity Risk, and Foreign Currency Risk. This solution measures and models every loan, deposit, investment, and portfolio individually, using both deterministic and stochastic methods. OFS ALM is a next-generation solution fully integrated with Oracle's Financial Services Analytical Applications and shares a common account level relational data model.

With this versatile forecasting tool, powerful analytical functions can be modeled for every instrument, including derivatives and embedded options. Modeling at the account level of detail (loan-by-loan and deposit-by-deposit) provides highly accurate modeling results. Flexible assumption rules and reporting structures support a wide range of analytical power.

Release 8 of OFS ALM includes rate-dependent business rules and improvements to derivative forecasting capabilities. You can define forecast assumption rules that leverage rate dependency patterns allowing you to dynamically model a range of portfolio characteristics that are dependent on the specific scenario being executed. Derivative instrument forecasting is directly supported through Transaction Strategy rules. Within Transaction Strategies, you can now select the derivative type and define the characteristics that apply to the specific derivative instrument being modeled