10 Common Mistakes in ALM Modeling
There are common mistakes that are frequently made by credit unions of all sizes and many examiners are now trained to look for them. Learning how to avoid these common mistakes will make your life easier. Save time and avoid common mistakes in your ALM modeling, and spend more time thinking strategically.
Common mistakes create significant risk modeling result errors and/or cause examiners to dig deeper, believing where there is smoke there is fire
Why it is important to first answer “Do these results actually make sense?” before asking “Is this assumption the right assumption?”
How risk modeling errors often causes decision-makers to focus on the wrong issues
How does the extra stress testing now required affect us - Putting the "S" in CAMEL
Meet Your Speaker: Rob Johnson, Executive Vice President/Principal, c. myers
Rob, one of four c. myers owners, has a reputation for deep, original thinking on A/LM and every conceivable modeling methodology, as well as analysis of investments, liquidity, aggregate risk, concentration risk, and other related topics. Rob has helped credit unions of all sizes tackle some of their toughest challenges, such as rebuilding capital and navigating safely and soundly with the smallest of margins. Within c. myers, Rob spearheaded the development efforts of our proprietary software, including the Interactive Decision, Interactive A/L Budget, and Liquidity Analysis Models. Rob also oversees our team that conducts model validations on a regular basis. He works closely with all of our consultants and analysts, making sure c. myers remains a learning organization for the benefit of our clients.