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.
Our Asset and Liability Management (ALM) solution integrates enterprise ALM, liquidity risk management, funds transfer pricing, and regulatory reporting capabilities into a seamless platform, helping you save on upfront technology and modeling investments.
With our internal rate of return (IRR) scenarios and proprietary macroeconomic scenarios, you can better anticipate future risks and identify opportunities for balance sheet stability and business growth. Our platform supports complex decision making by helping you understand your balance sheet risk profile, as well as contractual terms, behavioral characteristics, and profitability components.
Our Funds Transfer Pricing (FTP) solution builds upon our ALM platform to simulate traditional financial statements and reports under a wider variety of planned, shocked, and stressed scenarios.
With our FTP solution, you can reduce duplicate data loads, avoid inconsistent assumptions, and streamline complex setups. Our platform allows you to calculate transfer rates, income, and expenses, export results for profitability analysis, and compare transfer rates using different methodologies and assumptions.
Our Liquidity Risk Management solution lets you create different “states of the world”—including base, mild, moderate, and severe scenarios—that help you meet enhanced supervisory standards for measuring specific limits.
With our robust tools, you can perform daily liquidity forecasting at the category level, target increases or decreases in volume, forecast new business, or reinvest a proportion of runoff principal per category. Our tools enable you to model multiple forecasting scenarios in the same processing run and define alternate reporting periods, including daily, weekly, monthly, and quarterly options.
Our Investment Portfolio Management solution drives portfolio optimization by helping you measure and manage portfolio-level risk and return across your portfolios.
Moody’s solution provides banks with a comprehensive toolkit that helps to form diverse strategies for the optimal risk/return trade-off and create relevant trading, funding, and hedging options.
With our research, data, models, and multi-asset class risk tools, you gain crucial insights that can help you manage portfolio risk, maintain regulatory compliance, and make active asset allocation decisions. Our strategic asset allocation tools provide you with key information that will help you meet your investment objectives.
Our Asset and Liability Management (ALM) solution integrates enterprise ALM, liquidity risk management, funds transfer pricing, and regulatory reporting capabilities into a seamless platform, helping you save on upfront technology and modeling investments.
With our internal rate of return (IRR) scenarios and proprietary macroeconomic scenarios, you can better anticipate future risks and identify opportunities for balance sheet stability and business growth. Our platform supports complex decision making by helping you understand your balance sheet risk profile, as well as contractual terms, behavioral characteristics, and profitability components.
Our Funds Transfer Pricing (FTP) solution builds upon our ALM platform to simulate traditional financial statements and reports under a wider variety of planned, shocked, and stressed scenarios.
With our FTP solution, you can reduce duplicate data loads, avoid inconsistent assumptions, and streamline complex setups. Our platform allows you to calculate transfer rates, income, and expenses, export results for profitability analysis, and compare transfer rates using different methodologies and assumptions.
Our Liquidity Risk Management solution lets you create different “states of the world”—including base, mild, moderate, and severe scenarios—that help you meet enhanced supervisory standards for measuring specific limits.
With our robust tools, you can perform daily liquidity forecasting at the category level, target increases or decreases in volume, forecast new business, or reinvest a proportion of runoff principal per category. Our tools enable you to model multiple forecasting scenarios in the same processing run and define alternate reporting periods, including daily, weekly, monthly, and quarterly options.
Our Investment Portfolio Management solution drives portfolio optimization by helping you measure and manage portfolio-level risk and return across your portfolios.
Moody’s solution provides banks with a comprehensive toolkit that helps to form diverse strategies for the optimal risk/return trade-off and create relevant trading, funding, and hedging options.
With our research, data, models, and multi-asset class risk tools, you gain crucial insights that can help you manage portfolio risk, maintain regulatory compliance, and make active asset allocation decisions. Our strategic asset allocation tools provide you with key information that will help you meet your investment objectives.
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.
Source: Moody’s
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.
Source: Moody’s
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.
Source: Moody’s Ratings
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.
Source: Moody’s
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.
Source: Moody’s
Interested in learning more about our offerings? Our solutions specialists are ready to help.