10.7.6 (Mandatory) Defining Time Buckets

In generating forecasts for your current book of business, the OFSAA Cash Flow Engine processes your instrument-level business data on a daily basis. Results are aggregated into "time buckets" that you specify. Time Buckets also govern how new business forecasts are generated and stored as well as the overall duration of your forecast.

In general, the OFSAA Cash Flow Engine works with versatile Time Bucket definitions. In an ALM or Liquidity Risk Management context you might want to work with several different Time Buckets. For example, in a Liquidity Risk Management context you might want to use daily buckets for 90 days followed by weekly buckets for 52 weeks. In an ALM context, you might want to use monthly time buckets for 60 months followed by annual time buckets for 5 years.

OFS Balance Sheet Planning shares the OFSAA Cash Flow Engine with other OFS applications but supports a subset of the engine's total capabilities. OFS BSP is intended to produce monthly forecasts over a chosen duration so Time Bucket modelling in BSP is limited to monthly time buckets. OFS Balance Sheet Planning supports forecasts of up to 240 months.