Why It Is Time to Consider Outsourcing ALM

by Kevin Kirksey and Benedict Voit

All financial institutions have faced new regulatory burdens in the aftermath of the 2008 market meltdown. Much of the workload has fallen under the chief financial officer’s responsibilities. This has made the role of a CFO more complex and challenging than ever.

Today’s CFOs do more than manage budgets and oversee the financial matters. They must also analyze performance results, interpret them for the board of directors, and other management team members, and educate on what they mean. In addition, CFOs play critical roles in a variety of industry changes affecting their institutions:

  • Increased pressure to manage the costs of meeting compliance standards
  • Razor-thin margins in an environment where generating revenue has shifted from fee-based products and services toward lending-based activities
  • Additional scrutiny of risk management strategies related to the balance sheet
  • Need for board members to understand essential accounting principles and correctly interpret key ratios and financial statements, among other performance measures
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