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ALM

The Millennium Corporate AIM – Asset & Investment Management – Program provides ALM consulting services to client credit unions, specializing in strategy development and education, providing sound, practical, and impartial financial advice. The AIM team of financial analysts use industry leading software to monitor interest rate risk and test ALM strategies prior to implementation.

For more information regarding our services or to become an ALM client, please email aim@aimcusolutions.org, or call 855.882.8474.

Our comprehensive menu of ALM services is below. Select a service to read a brief description.

ALM Risk Modeling and Reporting provides your credit union with a robust report that goes far beyond regulatory requirements. Your credit union will receive ratio analysis with peer comparisons, detailed income simulations with the ability to run customized what-if scenarios, and a suite of tools to measure exposure to interest rate risk (IRR). These reports are presented in an easy-to-understand format on a schedule that is customized to your preferences.

The ALM modeling process has become more complex over the years due to new products, technological advancements, and regulatory requirements. Understanding these more complex models requires a level of expertise that is beyond the scope of most internal audits. The AIM Validation service offers credit unions an unbiased, third-party review of the entire ALM process. Whether a validation is requested by regulators or sought for your own peace-of-mind, our thorough review will answer any questions and highlight areas that may need improvement.

Understanding your credit union’s deposit behavior is essential to enhancing ALM modeling and making informed deposit decisions. The AIM team can provide a thorough analysis of relevant patterns through both our Core Deposit Study and Rate Sensitivity Analysis. Working alongside you, we will use this information to determine appropriate assumptions that are both realistic and conservative, so you can feel confident when using IRR modeling results to make decisions.

AIM’s Liquidity Stress Test is a crucial component of liquidity risk management for credit unions. It includes assessing your ability to withstand various adverse scenarios and evaluates how the credit union’s liquidity position is affected under different stress conditions, such as market or funding disruptions, and sudden deposit withdrawals.

The Stress Test is customizable to your credit union and allows you to simulate the impacts to your funding strategy and contingency funding plan under different environments. AIM runs a variety of different stress scenarios – mild, moderate, severe – allowing you to optimize your liquidity strategy.

Periodically, the Asset Liability Management and Investment policies should be reviewed for accuracy and reasonableness to ensure they still align with the risk tolerance of the credit union. AIM offers an outside review of the credit union’s current policies, suggesting appropriate updates and changes as needed. Sample policies are also made available to assist with the creation of new policies or to strengthen existing ones.

Education and Training is at the heart of what we do. As part of the ALM Risk Modeling service, each periodic review of the ALM Report offers an opportunity for direct training with the credit union’s management team, Board of Directors, ALCO, and staff. In addition, specific training and education on ALM topics is always available on an as needed basis with our subject matter experts.

There are many supplemental reports that AIM can provide on an ad hoc or ongoing basis. Some of these supplemental services include merger analysis, cashflows, fair value reporting, prepayment modeling, budget preparations, and peer analysis. If a report that you are looking for is not listed here, contact AIM and we would be happy to make a determination on how we can assist.


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