Financial institutions of all types must have a complete understanding of their balance sheet in order to navigate a complex financial landscape with confidence.
Moody’s solutions allow you to identify, measure, and manage risks across your balance sheet to create a holistic view of assets, liabilities, and opportunities.
With the breadth of data, analytics, macroeconomic scenarios, and behavioral models, you can better understand risk and perform critical tasks like financial modeling, continuous monitoring, and strategic planning.
Moody’s ALM solution equips financial institutions of all sizes with the data, models, and tools required to maintain a robust balance sheet and establish financial resilience. By gaining a consistent view of risk and leveraging the optionality to scale up the ALM solution, your institution can better track, and protect against, the risk that ripples through its functions.
The Liquidity Management module leverages dynamic liquidity stress scenarios that incorporate both systemic and idiosyncratic risks to allow you to navigate tomorrow’s liquidity, today. The module seamlessly connects to your existing systems or other Moody’s solutions for a quick setup and efficient performance. Analyze origination, deposit, or funding-related events to boost your planning, and pressure test your contingency funding plan to instill resilience across your balance sheet.
The Investment Management module merges scenario generation, third-party data, and behavioral modeling capabilities to bolster the flexibility and effectiveness of your investment analytics. Simulate a wide range of investment, hedging, and funding strategies to build the strategies that impact profitability, solvency, and capital adequacy in your investment portfolio.
The Capital Management module works with other BSRM modules to produce dynamic, scenario-dependent projections of the balance sheet, income, earnings, and capital. Integrate with your economic scenarios, structured product cashflows, prepayments, credit losses, and balance sheet growth assumptions. Select the macroeconomic scenario and the corresponding prepayment, credit and growth models in ALM, and watch your results update immediately, without running parallel processes and transfer data between systems.
The Impairment Accounting module enables you to address the operational complexities of evolving credit impairment accounting standards. It provides a user-friendly and auditable platform for data consolidation, model warehousing, expected credit loss calculation, and insightful analysis of results.
The Credit Portfolio Management module provides a complete picture of portfolio risks, emerging risks, and mitigation strategies that risk managers need to advise the business confidently. Combine portfolio analytics and decision-enabling tools to effectively identify, measure, and manage risk in your credit portfolio.
Moody’s ALM solution equips financial institutions of all sizes with the data, models, and tools required to maintain a robust balance sheet and establish financial resilience. By gaining a consistent view of risk and leveraging the optionality to scale up the ALM solution, your institution can better track, and protect against, the risk that ripples through its functions.
The Liquidity Management module leverages dynamic liquidity stress scenarios that incorporate both systemic and idiosyncratic risks to allow you to navigate tomorrow’s liquidity, today. The module seamlessly connects to your existing systems or other Moody’s solutions for a quick setup and efficient performance. Analyze origination, deposit, or funding-related events to boost your planning, and pressure test your contingency funding plan to instill resilience across your balance sheet.
The Investment Management module merges scenario generation, third-party data, and behavioral modeling capabilities to bolster the flexibility and effectiveness of your investment analytics. Simulate a wide range of investment, hedging, and funding strategies to build the strategies that impact profitability, solvency, and capital adequacy in your investment portfolio.
The Capital Management module works with other BSRM modules to produce dynamic, scenario-dependent projections of the balance sheet, income, earnings, and capital. Integrate with your economic scenarios, structured product cashflows, prepayments, credit losses, and balance sheet growth assumptions. Select the macroeconomic scenario and the corresponding prepayment, credit and growth models in ALM, and watch your results update immediately, without running parallel processes and transfer data between systems.
The Impairment Accounting module enables you to address the operational complexities of evolving credit impairment accounting standards. It provides a user-friendly and auditable platform for data consolidation, model warehousing, expected credit loss calculation, and insightful analysis of results.
The Credit Portfolio Management module provides a complete picture of portfolio risks, emerging risks, and mitigation strategies that risk managers need to advise the business confidently. Combine portfolio analytics and decision-enabling tools to effectively identify, measure, and manage risk in your credit portfolio.
Moody's buy-side asset and liability management (ALM) solution helps defined-benefit (DB) pension plans and their advisers to evaluate risk from multiple perspectives and perform real-time scenario stress-testing. It delivers market-leading, cross balance sheet analytics and has been designed to consider the regional regulatory regimes of DB pension plans. This enables a greater understanding of plan performance, and helps promote better strategic decisions. The solution allows you to assess the impact of strategic changes on investment returns, risk, cash contribution requirements, and accounting expenses along with many other key areas.
Designed to meet the needs of asset owners (DB pension plans), asset managers, and consultants, some key features include:
Delivery of a transparent view of assets, liabilities, and risk
A thorough and informed analysis of a plan's overall position
Tailored and automated packages support, streamlined reporting, and enhanced governance
Moody's buy-side asset and liability management (ALM) solution helps defined-benefit (DB) pension plans and their advisers to evaluate risk from multiple perspectives and perform real-time scenario stress-testing. It delivers market-leading, cross balance sheet analytics and has been designed to consider the regional regulatory regimes of DB pension plans. This enables a greater understanding of plan performance, and helps promote better strategic decisions. The solution allows you to assess the impact of strategic changes on investment returns, risk, cash contribution requirements, and accounting expenses along with many other key areas.
Designed to meet the needs of asset owners (DB pension plans), asset managers, and consultants, some key features include:
Delivery of a transparent view of assets, liabilities, and risk
A thorough and informed analysis of a plan's overall position
Tailored and automated packages support, streamlined reporting, and enhanced governance
Our powerful modeling solution supports critical management functions as well as actuarial, investment, finance, and risk decision making.
We provide a comprehensive set of workflows, including all actuarial analysis applications related to life insurance and pricing, reserving, asset and liability management (ALM), financial projections of earnings and capital, capital calculations, hedging, and financial and regulatory reporting.
We help you address key challenges that include:
Projecting future monthly cash flows per in-force policy and invested assets for up to 100 years
Generating current and future date valuations of actuarial reserves and associated financial reporting on multiple bases simultaneously
Evaluating blocks of business using deterministic or stochastic projections
Identify, assess, and mitigate risks as well as manage economic and regulatory capital modeling processes through a scalable, enterprise-wide offering.
Our insurance economic capital solution helps insurers calculate economic capital using a one-year, Value-at-Risk (VaR) approach to perform capital allocation by product and risk category. The solution also offers critical insights that help evaluate solvency positions and support risk-based decision making.
Our insurance regulatory capital solution addresses business needs and production requirements associated with regulatory capital calculations and reporting. We’ve optimized our solutions to manage the necessary risk and finance data by gathering, consolidating, and quality-checking large, disparate datasets from the systems required for calculations and reporting.
Insurance is a dynamic industry demanding the continuous assessment of new and evolving risks as well as the application of new regulation and financial reporting standards. Requirements such as IFRS 9, IFRS 17, LDTI, and climate disclosures exponentially increase modeling complexity and volume. Greater efficiency and reliability in actuarial modeling is essential to meet reporting deadlines and governance standards.
Our solution includes all the essential components of regulatory and financial reporting, earnings analysis, projections, and financial and capital planning. We also support advanced accounting frameworks such as IFRS 9, IFRS 17, and LDTI, and other important regulatory requirements such as Solvency II, C-ROSS, Hong Kong RBC, and NAIC.
Our powerful modeling solution supports critical management functions as well as actuarial, investment, finance, and risk decision making.
We provide a comprehensive set of workflows, including all actuarial analysis applications related to life insurance and pricing, reserving, asset and liability management (ALM), financial projections of earnings and capital, capital calculations, hedging, and financial and regulatory reporting.
We help you address key challenges that include:
Projecting future monthly cash flows per in-force policy and invested assets for up to 100 years
Generating current and future date valuations of actuarial reserves and associated financial reporting on multiple bases simultaneously
Evaluating blocks of business using deterministic or stochastic projections
Identify, assess, and mitigate risks as well as manage economic and regulatory capital modeling processes through a scalable, enterprise-wide offering.
Our insurance economic capital solution helps insurers calculate economic capital using a one-year, Value-at-Risk (VaR) approach to perform capital allocation by product and risk category. The solution also offers critical insights that help evaluate solvency positions and support risk-based decision making.
Our insurance regulatory capital solution addresses business needs and production requirements associated with regulatory capital calculations and reporting. We’ve optimized our solutions to manage the necessary risk and finance data by gathering, consolidating, and quality-checking large, disparate datasets from the systems required for calculations and reporting.
Insurance is a dynamic industry demanding the continuous assessment of new and evolving risks as well as the application of new regulation and financial reporting standards. Requirements such as IFRS 9, IFRS 17, LDTI, and climate disclosures exponentially increase modeling complexity and volume. Greater efficiency and reliability in actuarial modeling is essential to meet reporting deadlines and governance standards.
Our solution includes all the essential components of regulatory and financial reporting, earnings analysis, projections, and financial and capital planning. We also support advanced accounting frameworks such as IFRS 9, IFRS 17, and LDTI, and other important regulatory requirements such as Solvency II, C-ROSS, Hong Kong RBC, and NAIC.
Recent events are a reminder that the business of banking works effectively only when bankers are aware of how much liquidity they need and when they'll need it.
A sharp rate cycle was initiated in 2021 by central banks in a number of major economies which continued throughout 2022. In the case of the UK, this is the fastest that rates have risen in over three decades. As policy rates have fed through to deposits, banks’ balance sheets have been shifting.
IFRS 17 represents the most significant accounting change in the insurance industry in more than two decades. The new standard requires updates to insurers’ actuarial systems and time is of the essence.
Institutions of all sizes have raced to the finish line and wrapped up their annual capital plan and stress testing this April. What made this year’s exercise unique is that it coincided with the onset of the banking crisis.
As modeling requirements grow and insurers’ models become more complex, there is a greater recognition of the operational risks involved in the actuarial modeling process. Insurers must put appropriate model controls and governance in place to reduce opportunities for errors in the modeling process.
Funds Transfer Pricing (FTP) methodologies are based on the recognition that both lending and deposit activities should be economically viable for banks. New challenges have arisen recently on the liability side, which have resulted in a glut of deposits on bank balance sheets.
Interested in learning more about our offerings? Our solutions specialists are ready to help.