Important Points for IC 99 - Asset Management Exam
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ALM provides a true picture of the risk / reward trade-off in which the financial institutions in particular remain involved and engaged.
In 1999, the RBI issued exhaustive guidelines in respect of Asset Liability Management process for the mandatory compliance by the banks.
IRDA has issued detailed guidelines on Asset Liability Management in 2012 for mandatory compliance by insurance companies.
In the case of banks and insurance companies, risks include credit risk, capital risk, market risk, interest rate risk, and liquidity risk.
The regulator has stressed upon the Implementation of ALM technology, financial risk management and investment strategy framework as a catalyst to improve the decision-making process and, ultimately, the operating performance of the insurance organisation.
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