Use this information to calculate and
review Asset Liability Management (ALM) Economic Value of Equity (EVE)/Net Economic Value (NEV)
results.
Before you begin this task, 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 EVE/NEV calculation.
- Assumptions - Set up rate betas, prepayments, EVE/NEV treatments, and decay
rates, and review the assumptions for accuracy.
-
Select .
-
Select a value from the What If and
Organization drop-down lists on the Results tab.
-
Select the Validation tab 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.
-
Select the Manage Scenarios tab to review, add, and revise your
defined scenarios.
-
Select the Column Setup tab to review, add, and revise the
selected columns to use in the Results tab grid.
-
Select the Results tab.
-
Select a value from the Time Frame drop-down list, then select
Apply to confirm the forecast month.
The default month is the current month in the application.
-
Select Calculate to view new EVE/NEV
results.
