You can calculate and review Asset
Liability Management (ALM) Economic Value of Equity (EVE)/Net Economic Value (NEV) results on
the EVE/NEV pages.
Before you begin calculating EVE/NEV, the following items are required:
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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 EVE/NEV calculation.
- Assumptions - Set up rate betas, prepayments, EVE/NEV treatments, and decay
rates, and review the assumptions for accuracy.
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Select .
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Select a value from the What If and
Organization drop-down lists on the Results page.
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Select to review warnings regarding reconciliation, quoted market values, 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.
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Select to review, add, and revise your defined scenarios.
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Select Column Setup on the Results page to
review, add, and revise the selected columns to use in the Results page grid.
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Return to the Results page.
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Select a value from the Select Time Frame dialog box,
then select Apply to confirm the forecast month.
The default month is the current month in the application.
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Select Calculate to view new EVE/NEV results.
