You can calculate and review Asset
Liability Management (ALM) Earnings at Risk results on the Earnings at
Risk pages.
Before you begin calculating Earnings at Risk, the following items are
required:
-
Forecasting - Update the forecast in the model. For an overview of the Financial
Performance Suite (FPS) forecasting functionality, review the FPS Forecasting and
Financial Reporting Training Guide.
Tip: Examiners commonly request
a zero-growth forecast. Set up and use an Advanced Quick Forecast for consistent,
recurring forecasts specifically for the Earnings at Risk calculation.
- Assumptions - Set up rate betas and prepayments, and review the assumptions
for accuracy.
-
Select .
-
Select a value from the What If and
Organization drop-down lists on the Results page.
-
Select to review warnings regarding reconciliation and forecasting data.
To review and resolve a warning, select a blue link. The validation
process can detect issues that you consider acceptable exceptions. If this situation
happens, then leave those items unresolved.
-
Select to review, add, and revise your defined scenarios.
-
Select Column Setup on the Results page to
review, add, and revise the selected columns to use in the Results page grid.
-
Return to the Results page.
You can select Cumulative or
YTD to switch between cumulative results and year-to-date
results.
-
Select a value from the Select Time Frame dialog box, and then
select Apply to confirm the forecast month.
The default is 12 months in the future from the current month in the
application.
-
Select Calculate to view new Earnings at Risk results.
