Every financial institution must take great care in measuring balance sheet risk. Understanding the makeup of assets and liabilities, and the likely future values based on economic and market data, is essential to building a strong foundation that ensures long-term viability of the organization without becoming so conservative that growth is stifled. The fact that Asset Liability Management and liquidity stress testing are necessary is undeniable, but how an institution performs these critical tasks can take different paths.

For many credit unions, the choice has been to outsource ALM to an independent risk management provider. There are numerous reasons this makes sense, for credit unions both large and small. In a newly released white paper, “Is Outsourcing Risk Management Modeling Right for Your Credit Union?” Catalyst provides an in-depth review of the reasons tapping into the skills of an outside risk management provider may make sense, along with considerations in choosing a provider.

Among the many reasons a credit union might use an external party for ALM, a few key drivers include:

• Ability to leverage greater depth of expertise than available from internal staff
• Access to the latest tools and technologies
• Reduced costs versus staffing and maintaining an in-house ALM team
• Unbiased analysis that takes into account the latest regulatory and compliance requirements

With nearly 40 years of experience serving credit unions nationwide, Catalyst is one of the industry’s longest serving providers of third-party ALM and liquidity risk strategy services. From the largest, most complex credit unions to the smallest local institutions, Catalyst works with more than 15% of all credit unions in the country.

Learn more about Catalyst ALM and Risk Management services today. Contact us.