Forecasting is an important component of asset/liability management. Forecasting is the art of projecting future outcomes; it is an abstract picture of reality. It is the interconnection between Strategic Planning, Budgeting and Asset/Liability Management.
Forecasting is used in the financial services industry to project future performance, create annual budgets and analyze new business strategies (What-if's). FRC can assist you in setting up a cash-flow model to meet the complexities of your balance sheet.
Working very closely with our client, FRC can develop a Most Likely forecast, from assumptions used to a formal opinion on the outcome. FRC will strive to produce a realistic forecast of balance sheet growth and forward income performance built on management’s assumptions.
Outsourcing the forecasting function will save you time and money. When using FRC’s on-going forecasting service, we do most of the work, while guiding you in forward balance sheet development. Working in combination with our asset/liability management service, our client is able to quantify the forward risks and rewards, which is the desired outcome in dynamic asset/liability management.
What-if Analysis is becoming an important function recommended to our clients by their regulators. FRC can develop what-if analyses tailored specifically to our clients’ needs.