What is asset/liability management in SAP IS-B-SA - Strategy Analyzer?

SAP Term: asset/liability management

• Component: IS-B-SA

• Component Name: Strategy Analyzer

• Description: Component in mySAP Banking that depicts nine risk evaluations position volume, maturity volume, cash flows, currency liquidities, interest results, plus write-ups and write-downs for aggregated transactions from the SEM data pool. These evaluations are performed at hierarchy level through the assignment of analysis data from the various evaluations to the asset and liability sides in the maturity band either based on a key date, or by period. Asset/liability management is used to analyze gap positions from transactions with regard to their potential interest rate risks, currency risks and liquidity risks. It is also used to generate suggestions for future new business simulated position for a position of actual transactions. Asset/liability management is based on gap analysis.

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• Key Concepts: 
  Asset/Liability Management (ALM) is a process used by financial institutions to manage their balance sheet and ensure that their assets and liabilities are in line with their risk appetite. The IS-B-SA Strategy Analyzer is a component of SAP’s ALM solution that helps financial institutions analyze their balance sheet and identify potential risks. 
  
  How to use it: 
  The IS-B-SA Strategy Analyzer can be used to analyze the balance sheet of a financial institution and identify potential risks. It provides a comprehensive view of the balance sheet, including assets, liabilities, and capital. It also provides detailed analysis of the risk profile of the institution, including liquidity risk, interest rate risk, and credit risk. 
  
  Tips & Tricks: 
  When using the IS-B-SA Strategy Analyzer, it is important to consider the impact of changes in market conditions on the balance sheet. This will help to identify potential risks and ensure that the institution is adequately prepared for any changes in market conditions. 
  
  Related Information: 
  The IS-B-SA Strategy Analyzer is part of SAP’s ALM solution, which also includes other components such as the Asset/Liability Management Cockpit and the Risk Management Cockpit. These components provide additional tools for analyzing and managing the balance sheet of a financial institution.